Investing and Global Finance News

Tag Archives: pensions

Investment Portfolios

If you want to make the most of your retirement, planning is key.  One way of doing this is getting an investment portfolio which facilitates personal investment management and helps with organizing budget and savings. An investment portfolio is basically a cohesion of investments an institution/individual has.  If this is done in an efficient way, your risk will be able to be spread out evenly which will protect against “sudden financial crisis.”  Balanced portfolios that have investments with different risk levels will enable the client to limit exposure should one of the investments begin to substantially decline.

Retirees and Immediate Annuities

Retirees who withdrew a lump sum from their retirement plans would seemingly benefit from an immediate annuity.  In theory the sum can be changed into monthly, quarterly or annual payments “that represent a portion of principal plus interest” and will last over a lifetime.  But this has risks: a) getting a lifetime of regular payments… Continue Reading

Annuity Fees

It’s important that the client reads the small print before signing an annuity contract.  There can be various additional fees that might not be so clear.  These include:  the fee incurred for an early withdrawal which usually starts at 7 percent and then drops a percent each year until the seventh year; mortality fees of… Continue Reading

Where to Get an Annuity

Annuities can be purchased via insurance companies, agents, stockbrokers or banks.  To get the best deal vis-à-vis fees and quality, shop around carefully.  Here is what you need to do:  Learn about the insurer and then compare contracts. Since there are so many discrepancies in these areas, it is important you do all your homework… Continue Reading

Taxes of Payouts

Payouts will be taxed in different ways depending on whether you have a qualified or non-qualified annuity.  In the first case, this is basically some kind of retirement plan and will be privy to all tax benefits/penalties Congress established.  Benefits include: no payment of income tax on withdrawal of nondeductible/after-tax amount imputed into the plan;… Continue Reading

Types of Annuities

There are different types of annuities, dependent on: how the money is paid in; withdrawn and how it is invested.  The most basic ones are: single-premium (where you make the investment in one go); flexible-premium (series of payments); immediate (payments begin once annuity has been funded – popular with retirees); deferred (receive payouts a long… Continue Reading

How Investors Benefit from Annuities

Investors can benefit from annuities in the following two ways: saving money for a long-term project and a guaranteed income for a set period of time.  Annuities are great for funding a retirement or for large education fees when it is set in the child’s name under “Uniform Gifts to Minor Acts.”  When the money… Continue Reading

Understanding Annuities

  An annuity is a when you get a certain amount of money paid to you “for a fixed or contingent period,” often for your entire life  “either in prior installment payments or in a single payment.”  There are different types of annuities as well as a variety of tax aspects, dependent on what the… Continue Reading