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equityindexed: Annuities, How They Work And Their Tax Advantages - 01/14/10 05:45 PM
 
Even though an annuity is sold like securities by insurance companies, they are much different from insurance policies. The best way to explain annuities is to imagine a hybrid product that combines the advantages of long-term investments with the advantages of life insurance. With an insurance policy you typically pay monthly premiums, whereas an annuity generally has you making a lump sum payment upfront to guarantee a periodic payout immediately or starting at some future date that you choose.The exciting part is these payments continue as long as you live.
In case you are thinking you do not have a … (0 comments)

equityindexed: Advantages And Disadvantages Of Investing In Annuities - 01/14/10 05:42 PM
 
Annuity Pros(Advantages)
One of the largest benefits touted is that annuities offer you tax-deferred income, as annuity income is taxed only when you elect to receive it. So you can avoid taxes on annuities if you never want to use it, however that usually is not the objective. It is taxed evenly no matter when you put the money in if it is annuitized ("flip the switch" and start taking income from the annuity). If you take it out some other way i.e. IRS rule 72t, withdrawals etc. then it is taxed LIFO (last in first out). The purported advantage … (0 comments)

 
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Leon Williams

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