I represent the best annuity companies in the world including Aviva, Allianz, American Investors and Forethought. Aviva in particular offers the most aggressive annuities on the market including a guaranteed minimum 5% interest rate with no cap on interest earned exceeding 5%, an upfront 10% bonus on the first day and the ability to withdraw up to 10% a year with no penalty. An Annuity at a Glance:. Guaranteed Income for Life Your annuity can generate a monthly income that you can never outlive. Competitive Rate of Return My annuities return at a rate greater than Certificates of Deposit (CDs) and have no downside risk unlike 401ks and mutual funds. Zero Risk With a guaranteed minimum rate of return of 5%, you’re guaranteed to turn a profit no matter what happens to the market. At worst-case scenario, you will double your investment in 10 years at the minimum 5% rate of return. Tax-Deferral Contributions to your annuity are not taxed during your investment years. That means your investment will triple compound and grow faster. Upfront Bonus You will receive a 10% bonus the first day that will grow your investment and/or can make up for any losses you experienced playing in the market. Medicaid Qualification Your annuity can be structured to shelter assets, allowing you to qualify for Medicaid more easily without sacrificing quality of life. Probate Avoidance By naming a beneficiary, your annuity can bypass the lengthy and potentially expensive probate process. Liquidity You can withdraw money from your annuity when you need it, up to 10% a year. Joe Sanchez President AmericAnnuity http://www. com. Rediscover Hotmail®: Get quick friend updates right in your inbox.

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I have been told that the key advantages are "no loads or fees" (other than early surrender charges), ability to move money between fund "families" at no cost, ability to add and delete funds at will at no cost, and protection of invested amount to my spouse should i die. are there any downsides? i appreciate the responses but perhaps i did not properly represent my position in this. i am making the choice to use a financial advisor who has demonstrated good results with other clients. he uses variable annuity contracts for ira type money (401k and pension lump sum) as a container to easily manage diversification (spreading the money over several funds and fund families while providing the ability to easily rebalance between them on a periodic basis. i know this can be done outside of a variable annuity but requires more time and effort that i am not willing to spend. the advisor needs to get paid for his work, so i know there are fees but i am focued on results, and there is a proven track record. the other thing i left out is that i need to exercise rule 72t. recommendations?

plenty....there are fees associated with annuities. Do not let them tell you otherwise. The prior poster has it 100% correct! Give him 1000 stars and best answer and then avoid the annuity salesman like the plague! Invest at Vanguard, Fidelity, T Rowe, or any other of the big guys instead of the annuity product. You'll have similar protections without the huge expenses that go with annuities. --- My answer still hasn't changed. Your financial advisor can do all those things using a Schwab account or an IRA product with a open source architecture system. You are already paying him to manage your money, why should you pay the insurance company those fees as well. And 72t distributions are not that hard to calculate. In fact there are numerous calculators online. You simply have to make the calculation based upon life expectancies once and then make the distributions at least annually after that. Why make it more difficult and costly then you have to. Annuities are viable products only for those that can't sleep at night unless they know exactly how much they are earning and how much they are going to get paid. Certainly they have their place but they are simply not worth the money to the educated investor.

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I'm in intermediate 1, we've covered everything through inventory cost methods. annuities, bonds, the multi-step income statement...all covered, and more. trying to avoid sarbanes-oxley, and enron.

You have to write a term paper for accounting? That seems like a difficult task

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Your father is about to retire, and he wants to buy an annuity that will provide him with $50,000 of income a year for 20 years, with the first payment coming immediately. the going rate on such annuities is 6%. how much would it cost him to buy the annuity today?

use a financial calc. Set to BEGIN mode, since the pmts start immediately: n=20 i=6 pmt=50000 fv=0 pv= ? what we need to spend to buy the annuity solve for pv=$607,905.82

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This is my first year of tax filing as a retired person. so need some clarifications. (i) is pf payment to be shown as salary and then deduction claimed? is it deduction or exclusion? (ii) is super annuation annuity from lic be considered salary? (i had one annuity payment from my last employment where i retired voluntarily at the age of 50; subsequently i took up another salaried job. i have been including the annuity as salary income all along. last year i crossed 60 years of age and truly retired and have two annuities. in one website i read annuities are exempt. (iii) post retirement i have been doing some marketing for a commission from a us company to promote their product in india. i have business expenses, but have no formal company. is the commission from this to be taken as salary or other income? i have some associated business costs such as internet, telephone, car, petrol, office rent, electricity etc. so should i take commission minus these expenses and project resultant amount as net business income. (iv) this business income is from a us source in dollars. service was rendered for the source inindia. commission was paid in forex. does the forex earning make this a service export and get any tax benefit? thank you in anticipation

for the 3rd question, you should treat the income under the head income from other sources.

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Our daughter is 17 and will be a h.s. senior this year. her 2 year college is about 46 thousand. just notified that she is the beneficiary of 49 thousand lump sum annuity. she will be 18 in feb. we never dreamed this could happen and want to do what is best, we don't anticipate ever being in a position to leave her any money and would like to do whatever is best with this money. do we just tell the college or do we still fill out the financial aide forms. there will still be cost of living, apartment, food etc. please help!

If you allow her to go to a community college for 2 yrs she can save money. When she receives the her inheritance put it in a liquid CD at your local bank, but not in her name - she can be a beneficiary. Reason being, Federal Fin Aid is determined by the STUDENTS assets not the parents. Fill out our Fin Aid paper, and make sure you do it soon. Otherwise, your inheritance will be used to pay for the school. Additionally, you should know that the school and govt looks at the most recent Income tax reports . So, if she receives her funds in the same tax cycle it could be horrible for the 1st year. The second year should be a little better, but she might not get all that was promised to her this time

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,an annuity that will supplement her income by $65,000 per year for 25 years, beginning a year from today. the going rate on such annuities is 6.25%. how much would it cost her to buy such an annuity today? $770,963.15 $811,540.16 $852,117.17 $894,723.02 $939,459.18

Her life savings, as that annuity is one of the biggest ripoffs as an investment out there....

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I'm thinking the irs will tax all of the growth ($43,000), as ordinary income. so if i do a 1035 tax-free exchange of $43,000 to another tax sheltered annuity and a withdraw of the remaining $100,000, i should pay no taxes at that immediate time? sound right? thanks for any tips.

You don't mention your age, so I'm thinking you're not required to start withdrawing yet. If so, everything is tax-deferred until you actually withdraw. See your tax preparer for details. I see no reason not to stay with this variable annuity... why not leave it alone for another ten years?

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I was using taxcut 2005 and the cost of living adjusted amounts for the most recently released stats (tax year 2003) below were presented to me: national average wages $67,182 interest income 1,465 dividends 2,308 taxable pensions and annuities 22,921 unemployment compensation 4,981 how is it there are that many people with that high of: interest income dividends and unemployment comp? i hope there isn't someone out there with these exact amounts or there is something wrong here. :-) does the taxable pensions and annuities line most likely just reflect retired people? these figures scare me.

Those numbers do sound high. Is it possible that this is the average family income for a family that pays income taxes? I'm pretty sure it's not average income of everybody in the country, but since most very low-income people don't pay taxes,this could just be possible. For example, last year any individual making under $8200, and any married couple filing jointly making under $16,400, would not have paid income taxes, unless they were dependents of someone else, and many dependents would still not have paid tax. And for a large number of people, their social security income is not taxable. Take all of the people in those categories out of the calculation, and might be right. Also, remember that "average" can mean numerical average (add up the numbers and divide by the number of entries, so the very rich skew the figure), median (the middle value if you line all the values up numerically - this is normally used for average wages or income), or mode (the most common, not likely what's being used here).

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I live in fl. i'm on disability. my dad left me an annuity when he passed away. i am on medically needy, after a $700 share of cost each month, i receive full medicaid and medicare. if i wait till i am 65 there is no fee for taking the money out. i just found out that that i will have to take some money out each year. someone has told me that if i inherited the annuity, that i does not count against me. will having the annuity disqualify me from medicaid, forcing me to take it all out and live on it till it is gone, then back to medicaid?

What you take out will be taxable at your normal tax rate, as income. And annuities dont get a stepped up tax basis on inheritance like some other investments do.