Tag Archives: variable annuities

What are Variable Annuities

Variable Annuities, Cash for Retirement?

Variable Annuities, Cash for Retirement?

Variable Annuities, Cash for Retirement?

Variable Annuities, According to the SEC

“A variable annuity is a contract between you and an insurance company, under which the insurer agrees to make periodic payments to you, beginning either immediately or at some future date. You purchase a variable annuity contract by making either a single purchase payment or a series of purchase payments.

First, variable annuities let you receive periodic payments for the rest of your life (or the life of your spouse or any other person you designate). This feature offers protection against the possibility that, after you retire, you will outlive your assets.

Second, variable annuities have a death benefit. If you die before the insurer has started making payments to you, your beneficiary is guaranteed to receive a specified amount – typically at least the amount of your purchase payments. Your beneficiary will get a benefit from this feature if, at the time of your death, your account value is less than the guaranteed amount.

Third, variable annuities are tax-deferred. That means you pay no taxes on the income and investment gains from your annuity until you withdraw your money. You may also transfer your money from one investment option to another within a variable annuity without paying tax at the time of the transfer. When you take your money out of a variable annuity, however, you will be taxed on the earnings at ordinary income tax rates rather than lower capital gains rates. In general, the benefits of tax deferral will outweigh the costs of a variable annuity only if you hold it as a long-term investment to meet retirement and other long-range goals.”

To become knowledgeable about variable annuities, read this article in full at the US Securities and Exchange site.

Variable Annuity Sales News

Variable Annuity Sales For Advisors

Springtime has arrived and so have the new VAs
InvestmentNews
Last week the insurer said that it would curtail skyrocketing sales of its variable annuities and likely would do so by adjusting its investment options (see related story, Page 1). If that happens, all bets are off, Mr. Cacho-Negrete said.

This video compares the cost structure of a Variable Annuity and a Fixed Index Annuity.

Many investors thought they held a conservative investment when owning a variable annuity. However, the cost structure alone has given retirement income planners a challenge in providing lifetime income at a reasonable fee.

Variable Annuities

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Variable Annuities for retirement

Are Variable Annuities a Good Idea for Retirement

May 15, 2011

BusinessDay

Today this article is discussing different types of annuities, including variable annuities. Your state of health will determine the appropriate annuity you deserve Like the saying goes “no two head wears the same cap,” there are different types of annuities which serve individual purposes based on the difference in health status and how long such a person can live. For instance, if someone’s heath is threatened

 

8 Myths About Variable Annuities | eHow.com A variable annuity is a type of investment contract that insurance companies sell as a way to save for retirement, such as:

  • Annuities Go Well in Retirement Accounts
  • Variable Annuities Are a Good Place to Save After Maxing Out Retirement Accounts
  • Variable Annuity Payments Are Guaranteed
  • Variable Annuities Help You Transfer Wealth
  • Variable Annuities Are a Cost-Effective Way to Save for Retirement
  • Variable Annuities Are Simple to Understand
  • You Always Have Access to Your Variable Annuity Money
  • Variable Annuities Automatically Provide Inflation Protection

For an explanation about these myths look here….. www.ehow.com/info_8410048_8-myths-variable-annuities.html

 

Variable annuities are tax-deferred retirement savings products offered by insurance companies — but they often come with high fees.

Consider Variable Annuities to Boost Retirement Income

According to this article at My San Antonio, after you have fully funded your IRA and your 401(k), if you have funds left, you may want to invest in variable annuities, which offers these benefits:

    Tax deferred earnings.
    A variety of investment options.
    No contribution limits.
    Payout flexibility.
    Guaranteed death benefit.

Even with those obvious benefits, there are still considerations to discuss with your financial adviser before investing in variable annuities.

Read more: http://www.mysanantonio.com/default/article/Boosting-retirement-income-Consider-variable-1344068.php#ixzz1KGQtfDkZ

 

If your advisor gets paid a commission for selling annuities, as she probably does, she’s not an objective source for you on this topic. Consider investing a few hundred dollars to consult a fee-only financial planner, who can review your financial situation and your investments and offer advice.”

By Liz Weston
Money Talk
June 26, 2011 
Los Angeles Times