In theory, diversification means one decides to keep a portfolio as a part of their risk-reducing strategy and investment process. In practice what happens is, is that one distributes their finances among various assets that would significantly decrease investment risks. Therefore, to turn portfolios into the best they can be, the direction needs to be… Continue Reading
When a finance-based company starts to build the ideal investment portfolio, at the same time, it will set up an investment analysis. A customer who needs portfolio management services will approach such a company, especially if they are looking for a way to create their own investment portfolio. Creating an ideal investment portfolio will assist… Continue Reading
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,… Continue Reading
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
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
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
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
There are two ways of withdrawing your deferred annuity: a one-time payment or monthly payment. Monthly payments are more common. The amount of money you will receive depends on: size of your contract; your life expectancy; if payments continue after your death; if you have chosen the minimum requirement payment options. If you opt for… Continue Reading
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
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