ongoogle's picture
From ongoogle rss RSS  subscribe Subscribe

7% investment annuities 

When considering the formula for present value of an seven percent return annuity, there are many factors to investigate along the way. While some may consider this to be a cumbersome activity, history suggests that investigating the present value of an annuity due will pay often off if not immediately then down the road. For example is one considering the purchase of an existing annuity due, or is one considering the sale of an existing annuity due, or the purchase of a new annuity? Or is one considering evaluating an existing annuity for estate tax purposes? What discount rate assumptions are proper and what financial crediting factors are appropriate?

 

 
 
Tags:  seven percent return  7 percent return  7 % return  7% return  seven percent annuity return  7 percent annuity return  7 % annuity return  7% annuity return 
Views:  52
Published:  May 18, 2012
 
0
download

Share plick with friends Share
save to favorite
Report Abuse Report Abuse
 
Related Plicks
7% annuities

7% annuities

From: ongoogle
Views: 89 Comments: 0
When considering the formula for present value of an seven percent return annuity, there are many factors to investigate along the way. While some may consider this to be a cumbersome activity, history suggests that investigating the present value (more)

 

7 percent annuity return

7 percent annuity return

From: ongoogle
Views: 79 Comments: 0
When considering the formula for present value of an seven percent return annuity, there are many factors to investigate along the way. While some may consider this to be a cumbersome activity, history suggests that investigating the present value (more)

 

7 percent annuity return

7 percent annuity return

From: ongoogle
Views: 69 Comments: 0
When considering the formula for present value of an seven percent return annuity, there are many factors to investigate along the way. While some may consider this to be a cumbersome activity, history suggests that investigating the present value (more)

 

return of 7% on investments

return of 7% on investments

From: ongoogle
Views: 116 Comments: 0
When considering the formula for present value of an seven percent return annuity, there are many factors to investigate along the way. While some may consider this to be a cumbersome activity, history suggests that investigating the present value (more)

 

7% investment return

7% investment return

From: ongoogle
Views: 77 Comments: 0
When considering the formula for present value of an seven percent return annuity, there are many factors to investigate along the way. While some may consider this to be a cumbersome activity, history suggests that investigating the present value (more)

 
7% investment annuities

7% investment annuities

From: ongoogle
Views: 100 Comments: 0
When considering the formula for present value of an seven percent return annuity, there are many factors to investigate along the way. While some may consider this to be a cumbersome activity, history suggests that investigating the present value (more)

 
7 percent investment return

7 percent investment return

From: ongoogle
Views: 74 Comments: 0
When considering the formula for present value of an seven percent return annuity, there are many factors to investigate along the way. While some may consider this to be a cumbersome activity, history suggests that investigating the present value (more)

 
See all 
 
More from this user

seven percent savings return

seven percent savings return

From: ongoogle
Views: 74
Comments: 0

pacifica string quartet

pacifica string quartet

From: ongoogle
Views: 93
Comments: 0


seven percent savings return

seven percent savings return

From: ongoogle
Views: 107
Comments: 0

latest string quartet music

latest string quartet music

From: ongoogle
Views: 119
Comments: 0

the parker quartet

the parker quartet

From: ongoogle
Views: 82
Comments: 0

best string quartet music

best string quartet music

From: ongoogle
Views: 91
Comments: 0

See all 
 
 
 URL:          AddThis Social Bookmark Button
Embed Thin Player: (fits in most blogs)
Embed Full Player :
 
 

Name

Email (will NOT be shown to other users)

 

 
 
Comments: (watch)
 
 
Notes:
 
Slide 1: ==== ==== When considering the formula for present value of an seven percent return annuity, there are many factors to investigate along the way. While some may consider this to be a cumbersome activity, history suggests that investigating the present value of an annuity due will pay often off if not immediately then down the road. For example is one considering the purchase of an existing annuity due, or is one considering the sale of an existing annuity due, or the purchase of a new annuity? Or is one considering evaluating an existing annuity for estate tax purposes? What discount rate assumptions are proper and what financial crediting factors are appropriate? http://www.sevenpercentreturn.com ==== ==== There is no specific answer to the question "Why do people <b>buy annuities</b>."Why? Because there are various types of annuity products and each insurance company puts a custom brand on each type. That gives a potential investor literally thousands of choices when it comes to annuity purchases. Product specs are usually pretty simple, so each type of annuity will appeal to an individual depending on that individual's personal situation. First, I'll cover the basic types of annuities and some general guidelines in regards to the pros and cons of each. Then we'll get into a few basic pitfalls that investors will face during the annuity selection process. Sadly, this has more to do with the offering companies and selling agents than it does with the annuities themselves. The list of annuity products... Fixed Annuity: Also called a traditional annuity, this is the most basic product on the market and the easiest to understand. Assets allocated to a fixed product can either lock in a multi-year rate or choose a floating rate with a base guarantee. Reasons to buy- Fixed Annuities offer higher interest rates and tax deferral making them a highly beneficial alternative to CDs for cash investors. Also, because of the extreme safety of these products, they are great for people approaching retirement who want to conserve and protect assets while maintaining steady growth. Things to consider- Annuities are longer term contracts that usually don't offer the same type of short-term holding place as CDs. Free withdrawals do allow for some liquidity but surrender schedules should be closely evaluated and matched against future plans for the invested money. In addition, pre-retirees should realize the trade off you make when choosing safe growth over potential market gains. Variable Annuity: This product differs significantly from a fixed annuity in that assets within a variable account are invested in a variety of subaccount or mutual funds. That means the assets will fluctuate according to individual fund performance. This gives an investor the potential for greater returns but also possible investment losses. Variable annuities also offer several income guarantees in order to alleviate some concerns in regard to potential market loss.
Slide 2: Reasons to buy- The major selling points for variable annuities are the advantage of tax deferral and guaranteed income. Tax deferral allows compounding interest to have a greater effect on the bottom line and guaranteed income options will enable investors to hedge desired future returns against a presently specified minimum lifetime income. Things to consider- The advantages of tax deferral are often offset by high fees inside the annuity. Those fees can be limited if you choose to exclude certain riders but that eliminates many of the guarantees that make VAs attractive. IRAs and 401ks also offer tax deferral, so that shouldn't be a factor in deciding whether to purchase an annuity over your retirement account. In regards to guaranteed income, several strategies exist for ensuring higher levels of retirement income than most variable annuities offer. Run the numbers and find a qualified advisor to help. Equity Indexed Annuity: This is the most complex of all annuity products. EIAs are a hybrid of fixed and variable annuities. That means that these annuities come with a low base guaranteed rate and an upside gain tied to a major market index. Participation and cap rates limit the overall gain for the investor, meaning that the account will be credited with a percentage of the index gain and capped at a maximum rate. Reasons to buy- Most people really like an opportunity to participate in the returns of the stock market without risking loss of the principle investment. The right equity indexed annuity can allow a person to conserve assets and keep a reasonable expectation of growth as retirement approaches. Things to consider- Because of the base guarantee, EIAs come with significant fees that should not be overlooked. These are complicated products. Each company has different ways of calculating returns and crediting the base guarantee. Most equity indexed annuities should be avoided but there are a few that will work in certain situations. Absolutely Do Not trust anyone who shows you something that seems to good to be true because it probably is. As you can see, based on a general list of products and basic contract components, suitability and selection of products can be difficult. This is where the pitfalls come in for today's annuity shopper. Most advisors are naïve when it comes to the products they represent. It takes work and time to really be able to properly analyze an annuity contract. Because the insurance industry lacks regulation, the door is open for unqualified individuals to sell products that are hard to understand. I don't think there is any malicious intent, just too many people that gloss over the fine print. And that's where the real action is. In order to tell if an annuity is the right fit, you'll need an expert advisor. In order to <b>purchase an annuity</b>, you'll need a person who sells annuities. It should work out fine when you find someone who can do both. Bryan J. Anderson is the Author of The Annuity Report at AnnuityStraightTalk.com, and offers great free resources on how to Buy Annuities.
Slide 3: Bryan has also written an extensive free report on The Best Annuities and is available to help you find Guaranteed Lifetime Income. Article Source: http://EzineArticles.com/?expert=Bryan_J._Anderson ==== ==== When considering the formula for present value of an seven percent return annuity, there are many factors to investigate along the way. While some may consider this to be a cumbersome activity, history suggests that investigating the present value of an annuity due will pay often off if not immediately then down the road. For example is one considering the purchase of an existing annuity due, or is one considering the sale of an existing annuity due, or the purchase of a new annuity? Or is one considering evaluating an existing annuity for estate tax purposes? What discount rate assumptions are proper and what financial crediting factors are appropriate? http://www.sevenpercentreturn.com ==== ====

   
Time on Slide Time on Plick
Slides per Visit Slide Views Views by Location