There are two basic types of annuities, immediate and deferred.
Deferred annuities are used as money accumulation vehicles, since they are issued by insurance companies they have features and guarantees other investments cannot match.
These are of particular interest to self- employed (any age), OR those within 10 to 15 years of retirement or already retired.
Guaranteed Investment Annuities (GIAs) are similar to Guaranteed Investment Certificates (GICs) more information is available at www.GuaranteedInterest.ca
In Canada, variable annuities are called segregated funds or seg funds they are similar to mutual funds. More information available at www.ProtectandGrow.ca
Immediate annuities provide a guaranteed income stream in exchange for a lump sum premium. They are used as part of a retirement income strategy to provide stability.They are often used to build a guaranteed income to cover fixed expenses.
If have assets that are generating interest income and you do not need access to all the capital during your lifetime, the "insured annuity strategy" is worth exploring. The objective is to increase your current after tax income while preserving your asset for your heirs. Not for everyone, but the results can be quite dramatic, so it is worth a look.
Annuities can also be used to assist in a number of personal and corporate planning strategies, too numerous and complex to be cover here.
In Canada, if you are over 65, income from Interest from a prescribed non-registered annuity qualifies for the $2,000 pension tax credit.
Note: Interest from a Guaranteed Interest Annuity (GIA) also qualifies. GIAs are like Guaranteed Investment Certificates (GICs) but the are issued by insurance companies.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
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Deferred annuities are used as money accumulation vehicles, since they are issued by insurance companies they have features and guarantees other investments cannot match.
These are of particular interest to self- employed (any age), OR those within 10 to 15 years of retirement or already retired.
Guaranteed Investment Annuities (GIAs) are similar to Guaranteed Investment Certificates (GICs) more information is available at www.GuaranteedInterest.ca
In Canada, variable annuities are called segregated funds or seg funds they are similar to mutual funds. More information available at www.ProtectandGrow.ca
Immediate annuities provide a guaranteed income stream in exchange for a lump sum premium. They are used as part of a retirement income strategy to provide stability.They are often used to build a guaranteed income to cover fixed expenses.
If have assets that are generating interest income and you do not need access to all the capital during your lifetime, the "insured annuity strategy" is worth exploring. The objective is to increase your current after tax income while preserving your asset for your heirs. Not for everyone, but the results can be quite dramatic, so it is worth a look.
Annuities can also be used to assist in a number of personal and corporate planning strategies, too numerous and complex to be cover here.
In Canada, if you are over 65, income from Interest from a prescribed non-registered annuity qualifies for the $2,000 pension tax credit.
Note: Interest from a Guaranteed Interest Annuity (GIA) also qualifies. GIAs are like Guaranteed Investment Certificates (GICs) but the are issued by insurance companies.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.