Structured settlements can be useful and satisfactory arrangements for many people or for a period of time. But what if you prefer to have all of your money at once? Structured settlements are paid out over several years, which means that the value of a settlement is affected by inflation and other factors.
You may want to consult with a financial planner, such as a CPA, to gain a clearer comparison of a structured settlement annuity buyer?s offer and the value of the structured settlement.
Thursday, September 17, 2009
Tuesday, September 15, 2009
Income Tax on Annuities
Income tax on annuities is deferred, which means you aren't taxed on the interest your money earns while it stays in the annuity. Tax-deferred accumulation isn't the same as tax-free accumulation.
Income will continue to be paid out until the death of the annuity holder. Conventional annuities are the most common retirement income annuity. Income stability is why annuities are often part of retirement portfolios.
Income will continue to be paid out until the death of the annuity holder. Conventional annuities are the most common retirement income annuity. Income stability is why annuities are often part of retirement portfolios.
Monday, September 14, 2009
Young Annuity Buyers
Annuities are less attractive to younger investors because there is a 10 percent penalty tax if you withdraw money from your annuity before age 59 for reasons other than death or disability.
However, if you have already retired and need annuity income right away, opt for immediate annuities, which skip the accumulation phase and begin to issue payments as soon as you invest in the contract.
However, if you have already retired and need annuity income right away, opt for immediate annuities, which skip the accumulation phase and begin to issue payments as soon as you invest in the contract.
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