- How to Use Annuities for Income in Retirement
Your retirement plan can keep you up at night, especially if you are nervous about outliving your nest egg. Many Americans get peace of mind by adding annuities to their retirement plans. This financial product is an insurance contract that can pay you retirement income for a certain amount of years, or for a lifetime.… read more…
- What Is an Annuity Buyout?
An annuity buyout is a financial transaction where an individual or company sells their annuity, a contract for regular payments from an insurance company, to another party for a lump sum payment. This can seem appealing when a lump sum is more useful than the periodic payments provided by the annuity. LIMRA’s U.S. Individual Annuity… read more…
- Should I Buy an Annuity at Age 40?
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- Pros and Cons of Adding a Fixed Annuity to Your Retirement Portfolio
Fixed income annuities can be funded either with a single lump-sum payment or through a series of contributions made over time. In return, they provide retirees with a guaranteed stream of income that doesn’t fluctuate with the market. This steady payout can complement Social Security or pensions, offering predictable cash flow for life or a… read more…
- What Is a Medicaid Annuity?
The cost of a long stay in a nursing home can quickly deplete your savings. Medicaid can cover many of these costs, but only people of limited financial means can qualify. You might have to expend nearly all your assets to pay for our care before Medicaid can help. By purchasing a Medicaid annuity, however,… read more…
- New RMD Rules Let You Turn Charitable Donations Into Retirement Income for Life
Investors who chafe at having to take required minimum distributions (RMDs) each year have a new tool to help them reduce the tax bite of these withdrawals – and provide retirement income for life. A financial advisor can help you… read more…
- Treasury Bonds vs. TIPS Ladders vs. Annuities: Which Strategy Is Best For Retirement Income?
Generating enough income in retirement to meet your spending needs is crucial. While Social Security provides inflation-protected retirement income, it’s simply not enough for many retirees. If you need help planning for retirement, consider working with a financial advisor. John Rekenthaler,… read more…
- Fixed-Index Annuities Can Help You Secure Your Retirement – If You Use Them Correctly
Annuities can help solve the biggest challenge of retirement. When you save up for retirement, the two largest risks are intertwined. First, you risk not being able to pay your bills if you don’t properly calculate your annual spending. Second, you… read more…
- What Is a Straight Life Annuity?
A straight life annuity is a form of annuity that makes payments for a single person’s life. It does not pay a death benefit, nor does it pay spousal benefits. The annuity payments end when the beneficiary dies. Here’s how… read more…
- Why Schwab Says Now Is the Right Time to Consider an Annuity
If you’re looking for ways to generate more retirement income, now may be the perfect time to consider an annuity. Payout rates for guaranteed lifetime annuities are currently at their highest levels in over a decade, according to Schwab. While… read more…
- What Is a Retirement Annuity?
A retirement annuity is a basic annuity where you pay on a contract for a set period of time and in return receive income, often for life. Retirement annuities provide predictable income, giving people increased financial security and peace of… read more…
- What is an Annuity Income Rider?
An annuity income rider is an optional feature of many annuities that retirees can use to provide themselves with a guaranteed minimum income for as long as they live. Income riders add cost and complexity to annuities but give retirees… read more…
- The Pros and Cons of a Hybrid Annuity
A hybrid annuity combines the features of a fixed annuity and a variable annuity. Hybrid annuities offer guaranteed lifetime income like a fixed annuity, plus potential for growth like a variable annuity. Limitations of hybrid annuities include higher fees than… read more…
- Using a Roth IRA Annuity for Retirement
There are different financial vehicles that you can use to save for retirement. A Roth individual retirement account is one option; an annuity is another. A Roth IRA annuity combines features of both into a single financial tool. You can… read more…
- What Is the Accumulation Period of an Annuity?
As you plan for retirement, you may consider buying an annuity. After all, who doesn’t want a guaranteed stream of income when they retire? But there are some things you should know about these investments before you sign on the… read more…
- Are Annuities Insured?
An annuity is a type of insurance contract that can offer a guaranteed income stream, making them a common investment of retirees. In exchange for a lump sum or a series of payments, an insurance company provides guaranteed returns. While… read more…
- The Pros and Cons of Indexed Annuities
Annuities are a popular option for people planning for retirement, but there are many different types of annuities that you can choose from. One popular option is an indexed annuity, a hybrid type of annuity that tracks a stock market… read more…
- Annuity Transfer Rules: How to Avoid Tax Penalties
If you purchased an annuity but later decide that it no longer fits your financial plan, you may be wondering what you can do with it. You could surrender it or cash it out but that could trigger fees and… read more…
- Can You Buy an Annuity at Any Age?
Annuities are designed to provide you with a consistent stream of income for retirement. If you’re interested in adding an annuity to your financial plan, you may be wondering when you should consider purchasing one. The best age to buy… read more…
- What Is an Annuity Factor?
You may think saving for retirement is as simple as throwing a few bucks into your 401(k) every paycheck. However, accounting for retirement’s complexities and costs goes beyond piling up money in an investment account. Your interest rate, length of… read more…
- What Is a Non-Qualified Annuity and How Are They Taxed?
Non-qualified annuities have some unusual tax advantages. With these contracts, you invest money using after-tax dollars. The money in the annuity then grows tax-free or technically tax-deferred, until the contract matures. At that point, called the “annuitization,” you begin receiving… read more…
- Alternatives to Annuities for Retirement Income
Annuities are a popular choice for retirees concerned they might outlive their retirement savings. These retirement savings vehicles work a bit differently than traditional or Roth retirement accounts. Instead, annuities are a type of contract you enter into with an… read more…
- What Is an Annuity Bailout Provision?
You may not want friends or family to need to bail you out of a problem, but chances are you aren’t going to mind getting some help from your insurance company’s annuity contract. In other words, if you get the… read more…
- Annuitant-Driven vs. Owner-Driven Annuity
Every lifetime annuity needs three parties: the contract’s owner, its annuitant and its beneficiary. In an annuitant-driven contract, the annuity ends and pays out to the beneficiary when the annuitant dies. In an owner-driven contract, the annuity ends and pays… read more…
- How Are Annuities Given Favorable Tax Treatment?
Annuities are tax-advantaged investment vehicles that guarantee retirement income. Here’s how they can benefit your tax situation and how to tell if one is right for you. A financial advisor can help you decide if an annuity is a good… read more…