Annuity Articles

An ordinary annuity is considered by most people to be a fixed annuity. A fixed annuity is one that pays a fixed amount of earnings regardless of the performance of stock or bond markets. The fixed amount varies depending on the insurance company that issues the annuity, but is usually ...

Like all annuities, a deferred annuity represents a contract between an insurance company and an investor. In exchange for providing the insurance company with the premium, the insurance company agrees to pay the investor a specified amount of money at some point in the future. Taxes, ...

Fixed annuities are a contract between an investor and an insurance company. They provide a contractual way for an investor to ensure that he or she receives guaranteed income for life. Other investment products, such as stocks that pay dividends, can also supply income. But, they are not ...

Since their introduction in the late 1940’s, variable annuities have had a fairly colorful history.  Along with the heaps of praise they garnered during the stock market bull runs they have also amassed a fair share of criticism especially during market declines.  At the ...

The decision as to which kind of annuity, fixed or immediate, to purchase is based largely on the specific need or goal that needs to be fulfilled.  In certain situations, a combination of both could provide the right solution. The answer, in any case, requires an understanding of the ...

During the Great Depression, when it became more difficult for people to deposit lump sums of money into a fixed annuity, life insurers responded by introducing a variation called a deferred annuity. For people who were concerned about their future security, annuities have long been viewed ...

The history of annuities can be traced back to Roman times when, as a means of raising money to fund wars, the government would promise a lifetime of payments in return for deposits from citizens and soldiers.  Annuities, as secure retirement vehicles, rose to prominence during the ...

For the average person trying to plan for the future, the proliferation of financial products, information, and companies competing for your savings dollars has left them confused and bewildered to the point of paralysis.  The idea of venturing into the storm of volatile financial ...

As the retirement dream continues to inch outside of the reach of more and more people, single women find themselves especially challenged to achieve meaningful financial independence for their golden years. Although times have changed and, along with it, the negative income disparity ...

An annuity is a financial contract between an investor and an insurance company. The investor gives the insurance company a specified amount of money in exchange for guaranteed payments. Annuities can either be deferred, meaning that taxes on the earnings along with the distribution of ...

For people who need to begin receiving distributions from qualified retirement accounts prior to age 59 ½, the Internal Revenue Service has established sections 72(t) and 72(q) to allow for penalty-free early withdrawals. Investors who take distributions prior to age 59 ½ are ...

There are two kinds of annuities: Deferred and immediate. Deferred annuities are purchased with earned income and have an accumulation phase that can last for several years, and in some cases, decades. The money used to make the purchase can either be qualified, meaning that it has not yet ...

Annuities are offered by insurance companies, both large and small. There are a number of things to consider when searching for a quality company with which to invest hard earned dollars. The following questions shed light on important points to consider when shopping ...

Annuities are versatile investment vehicles with income-producing potential. There are three types of annuities, all of which have similar features but are much different investments. Additionally, there are four general methods for accessing the funds within an annuity. In any case, ...

The term ‘annuity’ has really come to have a bad reputation. The truth is that annuities have an important place as a component of the financial plans for many families. Unfortunately, over the years these types of accounts have often been misrepresented and misused by poorly ...

There are annuities that provide a fixed rate of return where your principal investment will be held steady. This is called a fixed annuity.  Rates are usually very low but the risk of principal loss is not a factor with these annuities.  Another type of annuity is one where the ...

Before we delve into the details of fixed annuity fees, we will first talk a little bit about what exactly a fixed annuity is.  A fixed annuity is when a person deposits a set amount of money with an insurance company for the promise of a set future stream of income.  The person ...

In looking at variable annuity death benefits we should first do a review of what a variable annuity is.  A variable annuity is a contract that a person purchases from an insurance company.  The insurance company in effect promises to pay you periodic payments for the rest of your ...

If you’re considering investing in an annuity but you can’t decide between a fixed rate annuity or a variable annuity, you may be a candidate for an equity linked annuity.  Most people know this annuities by the name Equity Indexed annuities.  Equity linked annuities ...

Annuities are contracts sold by insurance companies to guarantee a steady stream of retirement income to the purchaser.  They can be a variable annuity, which means that they are invested in the stock market and the rate of return is not guaranteed.  They can be a fixed rate ...