Annuities

Real-World Index Annuity Returns

16th May, 2017

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Real-World Index Annuity Returns

From: Financial Planning Association

  • This paper offers the first empirical exploration of fixed index annuity (FIA) returns based on actual contracts that were sold and actual interest that was credited.
  • FIAs are designed to have limited downside returns assocated with declining markets, and achieve respectable returns in more robust equity markets.
  • Studies that have criticized FIAs are usually based on hypothesized crediting rate formulae, constant participation rates and caps,…

Retirement Basics: Fixed Index Annuities

12th Apr, 2017

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Retirement Basics: Fixed Index Annuities

From: REAP, LLC.

How a Fixed Index Annuity could strengthen and protect your overall retirement plan.

When it comes to your retirement, a steady stream of income could make a difference in your later years. With a fixed index annuity, a portion of your retirement savings is protected from risk until it’s needed. What is a fixed index annuity? A fixed index annuity allows you to protect a portion…

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…