An annuity is a contract between you, the purchaser or owner, and an insurance company, the annuity issuer. In its simplest form, you pay money to an annuity issuer, and the issuer pays out the principal and earnings back to you or to a named beneficiary. Life insurance companies first developed annuities to provide income to individuals during their retirement years. Annuities are either qualified or nonqualified. Qualified annuities are used in connection with tax-advantaged retirement plans, such as 401(k) plans, Section 403(b) retirement plans (TSAs), or IRAs. Qualified annuities are subject to the contribution, withdrawal, and tax rules that apply to tax-advantaged retirement plans....
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What is an annuity mortgage in The Netherlands? An annuity mortgage (or repayment mortgage) is a mortgage whereby you pay a fixed monthly amount made up of interest and capital repayment. That interest and repayment together are called the annuity. The monthly amount remains the same throughout the term of the mortgage, which is normally taken out for between 20 and 30 years. The advantages of an annuity mortgage An annuity mortgage is one of the two most common types of mortgages in the Netherlands. The other type is the linear mortgage. The main advantage is that with an annuity mortgage, as with a linear mortgage, you will have repaid your whole mortgage at the end of the term. You...
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What do we think, say, and do with our money? Too often, we base our thoughts, phrase our words, and take action based on myths that have been passed down from parent to child, financial advisor to client, real estate agent to homebuyer, car salesman or insurance agent to consumer, from colleague to colleague, neighbor to neighbor, or friend to friend. The problem is that when financial reality hits--perhaps in our 40s, 50s, or even later--these financial myths explode, and make us wish that we had been paying closer attention to our own financial reality all along. Please read what I have to say. Things are going to be different in the century ahead from the way they were in the century...
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At the moment, from age 55, you can turn your pension savings into a regular income that’ll keep going for as long as you do. This is also called ‘buying an annuity’. This is increasing to age 57 from the 6th of April 2028. You give some or all of your pension savings to an insurance company and, in return, they'll pay you a guaranteed, regular income every year for the rest of your life. You can also combine taking a secure income with your other retirement options. You can choose to add extra features such as yearly increases to your money or making sure your loved ones will get some of your income when you die. It costs more to add on certain features, so your starting...
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Securities are offered through Symetra Securities, Inc. (SSI). Member FINRA. Annuities are issued by Symetra Life Insurance Company (SLIC). Products, features, terms and conditions may vary by state and may not available in all U.S. states or any U.S. territory. SSI and SLIC are affiliates and are both located at 777 108th Avenue NE, Suite 1200, Bellevue, WA 98004-5135. Each company is responsible for its own financial obligations. Symetra Trek is an individual single-premium deferred annuity contract with index-linked interest options. Contract form number is RSC-0536 4/18 in most states. In Idaho, contract form number is RSC-0536/ID 3/21. Symetra Trek Plus is an individual single-premium...
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Unless you’re a billionaire, making sure you have enough money to save through retirement can be a tough proposition. That’s why there’s a whole host of different savings accounts, investment options and other financial products, like annuities, designed to help fit the bill. Providing regular income, annuities can be one piece of that retirement puzzle. But they’re often maligned because they can be confusing enough to irritate even the most dedicated planners. Still, annuities can be very useful in the right situations. We’ll break down the basics so that you can decide whether annuities are worth investigating further or aren’t quite right for your needs. What is an annuity, exactly? An...
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An annuity is an insurance product that can provide a secure income stream for the rest of your life Annuities have long been popular with seniors seeking steady returns, but they can benefit younger investors too. An annuity is an investment product issued by an insurer that provides steady income during retirement. An annuity charges a premium upfront with other management fees often rolled into the cost. Fixed, variable, and indexed annuities offer different investment options with varying risk profiles. When putting away money for retirement, it can be difficult to know if you're saving enough. Even if you think you've got it all covered, there's little certainty about how much you'll...
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For many Americans, saving for retirement is an intimidating challenge. While there are many options available, one worth considering is the annuity. Annuities can be complex, but they have the potential to lessen your stress as a retiree. According to a 2021 survey completed by TIAA (Teachers Insurance and Annuity Association), 45% of Americans worry about running out of funds in retirement. That’s where investments like 401(k)s, IRAs and annuities step in. They can offer a source of reliable income during your retirement years. However, they won’t work for everyone. Here’s a rundown on how annuities work and whether they may benefit you. What Are Annuities? Annuities...
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What is an annuity pension? The pros and cons An annuity pension is a popular alternative to workplace and personal pensions. If you’re planning for your retirement or want to know more about the different options available to you when it comes to saving for the future, it’s important to consider whether an annuity pension is right for you. Here’s everything you need to know about what they are, how they work and their pros and cons. What is an annuity? An annuity is actually an insurance product. You pay a lump sum to a provider, who in turn agrees to pay you a regular income for the rest of your life. This income is guaranteed and does not depend on a limited pot of...
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What Is a Fixed Annuity? A fixed annuity provides guaranteed retirement income payments. With a fixed annuity contract, you make one or several payments to the annuity provider, which in turn promises to pay you a fixed return on your contributions, no matter how markets are performing. Annuities can be relatively illiquid investments, however, and some fixed annuities charge high fees. Here’s a deeper look at annuity basics and how fixed annuities compare to the other types of annuity contracts. How Does a Fixed Annuity Work? A fixed annuity is a type of annuity contract that provides a guaranteed return on contributions you make as a lump sum or over a set period of time. The period you...
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