- What Is a Variable Annuity?
Variable annuities are commonly used to save for retirement, as they combine investing and long-term income payments into one product. They also operate on a tax-deferred basis, meaning you won’t have to pay income taxes until you begin withdrawing money… read more…
- Annuities vs. Mutual Funds for Retirement
When choosing investments for your retirement plan, you’ll have a lot of options, including annuities and mutual funds. While both can play an important role in your retirement income plan, they are very different assets with unique characteristics. If you’re choosing… read more…
- Lump Sum vs. Annuity: Which Should You Take?
If you’re lucky enough to win the lottery or you have a pension plan, you may need to decide whether you want to take your earnings as a lump sum or an annuity. If your goal is to maximize your… read more…
- Is a Variable Annuity a Good Idea?
Variable annuities offer strong growth potential and considerable risk all at once. Because the returns you earn through a variable annuity are based on the performance of an investment portfolio, you stand the chance of losing money. However, there are… read more…
- What Is an Annuity Table?
Annuities can help you plan for your retirement by providing a guaranteed source of income for you and your family when you reach your golden years. They aren’t the simplest of investments, though, and sometimes it can be difficult to… read more…
- What Is an Ordinary Annuity?
An annuity is a contract to guarantee a series of structured payments over time. It starts at a predetermined date and lasts for a predetermined time. There are two main forms of annuity: the ordinary annuity and the annuity due.… read more…
- What Is Annuity Due?
“Annuity due” is a financial term that you may encounter when you are borrowing money, paying rent, saving for retirement or purchasing an annuity. Annuity due means that a payment is due at the beginning of the time period in question.… read more…
- What Is the Annuity Exclusion Ratio?
If you have looked into products like annuities, you’ve probably seen the term “exclusion ratio” floating around. It’s one of the most important factors you need to consider when planning your investments. The exclusion ratio is the portion of an… read more…
- Annuity vs. IRA
Americans look forward to their golden years, but saving for retirement can be an intimidating undertaking. The long-term nature of this type of financial planning calls for good decision-making, so simplifying it is of the utmost importance. Let’s break down… read more…
- What Is the Future Value of an Annuity?
An annuity can be a good way to supplement your retirement savings to ensure your golden years are as smooth as possible. By locking in a fixed monthly income in exchange for an upfront payment, you can make sure that… read more…
- What Is the Present Value of Annuity? Definition, Example and Formula
An annuity can be a useful tool when planning for retirement. After you’ve stopped working, you’ll be relying on your savings and Social Security payments to support yourself and enjoy your golden years. Purchasing an annuity creates an additional income… read more…
- What Is an Indexed Annuity?
Indexed annuities, also called fixed indexed annuities, are insurance products meant for people who want protection from market volatility but still want some growth. They are often promoted as having no downside and only upside, but that isn’t always the case. These products are described as combining the safety of fixed annuities with the growth… read more…
- What Is a Deferred Annuity?
As people live longer, retirement savings need to last more years. A deferred annuity can help by letting you invest now and receiving income later. This usually begins in retirement when other income declines, allowing your money to grow tax-deferred and potentially provide larger payments over time. According to LIMRA’s U.S. Individual Annuity Sales Survey… read more…
- How Do Annuities Work?
When it comes to retirement, Social Security and your 401(k) plan don’t always cover you throughout your retirement. If you’re planning for retirement, you might want to also consider opening an annuity. Annuities are long-term investments that help protect you… read more…
- What Are the Pros and Cons of Annuities?
Putting away money for retirement can be an arduous process. Once you figure out how much you need to save to retire, the real planning begins. There are a number of retirement savings options available, such as a 401(k) through… read more…
- Understanding Indexed Annuities
There is a reason why annuities are appealing financial products. They remove the uncertainty from retirement income by guaranteeing an annual sum. However, do the costs outweigh the benefits? This is a closer look at indexed annuities and what experts say about them. A financial advisor can help you assess whether an indexed annuity’s features… read more…
- What Is an Immediate Annuity?
Planning for retirement can be challenging. Figuring out exactly how much you need to sock away can be tricky, even if you use a retirement calculator. And many retirees are concerned about running out of savings. If thinking about your financial… read more…
- Pros and Cons of Converting an IRA to an Annuity
Retirement planning involves making strategic decisions about how to manage your savings for long-term financial security. One option that some retirees consider is converting an IRA to an annuity. This financial move transforms your retirement account from a self-managed investment vehicle into a product that provides guaranteed income streams. While IRAs offer tax advantages and… read more…
- What Is a 403(b)?
A 403(b) is a tax-advantaged retirement plan available to many of America’s public employees, employees of universities and hospitals, religious leaders and workers at non-governmental organizations. Like a 401(k), a 403(b) comprises contributions that aren’t taxed right away. The contributions… read more…
- What Is an Annuity?
An annuity is a financial contract you can sign with an insurance company, wherein you pay a premium in exchange for guaranteed payments at a later date. Annuities can be a useful tool to help you fund your retirement. If you’re worried that you might outlive the savings you’ve built with your 401(k) or IRA… read more…