Annuities

IRS Denies IRC Section 1035 Tax Deferral in Annuity Exchange

6th Jul, 2016

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IRS Denies IRC Section 1035 Tax Deferral in Annuity Exchange

From: wealthmanagement.com

Taxpayer’s receipt of outright cash from original insurance company barred non-recognition

A taxpayer inherited an interest in an annuity from his late father. The taxpayer wished to exchange his interest in the inherited annuity for an annuity sold by a different insurance company. With the intent of qualifying the transaction as a permissible tax-free exchange, he mistakenly requested a “Lump Sum…

Real World Index Annuity Returns

12th Apr, 2016

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Real World Index Annuity Returns

From: Wharton Financial Institutions Center

Financial advisors and financial planners have sought various programs to provide clients protection from systematic risk, also known as market risk. Various asset allocation strategies have been used with limited success when extreme market movements and “black swans” occur (Taleb, 2007). It has been known for close to 50 years that equity market returns do not conform to a Guassian, or Normal…

The Problem With Naming A Trust As The Beneficiary Of An Annuity

15th Feb, 2016

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The Problem With Naming A Trust As The Beneficiary Of An Annuity, And Using A Beneficiary Designation With Restricted Payout Form As An Alternative

From: kitces.com

Retirement accounts and annuities used as accumulation vehicles can create significant tax-deferred account balances over time, with the caveat that eventually the tax bill must still come due. If the accounts are liquidated during life, the account owner faces the tax consequences; if the accounts are…

Should Annuities Provide Your Retirement Paycheck?

29th Jul, 2015

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Should Annuities Provide Your Retirement Paycheck?

From: foxbusiness.com

With traditional safety nets such as company pensions and Social Security dwindling, many of the 78 million baby boomers are left trying to answer one question: “Who’s going to pay my retirement paycheck?”

Annuities are one investment that more and more prospective retirees are considering. These financial products are created by the insurance industry, and offer a lot more flexibility and advantages than other investments….

How Annuities Soothe Retirement Anxiety

10th Jul, 2015

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How Annuities Soothe Retirement Anxiety

From: insurancenewsnetmagazine.com

One day, advisor Joe Lucey received a call from a commercial airline pilot who wanted to come in and talk about financing retirement. The pilot, whom we’ll call George, said he had heard Lucey talking about retirement planning on Secured Retirement Radio, a weekly show that Lucey hosts. That commentary prompted George to call for an appointment.

When George explained his purpose, he seemed calm…

The safest way to make your retirement savings last

15th Apr, 2015

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The safest way to make your retirement savings last

From: money.cnn.com

Whenever I read about annuities, I wonder why you can’t create one on your own without an insurance company. Just invest your money conservatively and then watch your expenses so you don’t blow through your savings too soon. Wouldn’t that plan work just as well, if not better, than an annuity? – Mike J., New Jersey

In theory, it should be…

Using Annuities for Long-Term Care Planning

13th Apr, 2015

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Using Annuities for Long-Term Care Planning

From: elderlawanswers.com

Insurance agents and financial institutions often advertise annuities as the perfect way to generate retirement income. While annuities can be a valuable retirement tool, if you are buying an annuity as part of a Medicaid planning strategy, you need to fully understand what you are getting. And whether an annuity makes sense as part of Medicaid planning may depend on whether you are married…