Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
Tax deferred annuities are used in qualified retirement plans and non qualified income scenarios. There are three basic crediting methods for savers and investors to consider: interest rate, indices and separate sub accounts. Recently many consumer have been concerned about new life expectancy projections and select a life time income option they can't outlive.
Annuities are used in these 10 places plus more:
1) The annuitant's retirement years, as an income stream.
2) In an IRA, to fund it.
3) If self employed, in a Keogh-type retirement plan.
4) Pensions plans, when used by businesses to fund them.
5) Next to a pension plan, to supplement it.
6) After the sale of a home or business.
7) By grandparents, to pass money to grandchildren.
8) If a variable annuity, for growth.
9) When receiving a lottery prize, life insurance proceeds, or bonus.
10) When unable to qualify for life insurance.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Annuities are used to provide an income that you cannot outlive. They have a favorable tax treatment which makes them valuable in accumulating wealth over a relatively long period of time. This is primarily due to the treatment of interest inside an annuity. Annuities have been the instrument of choice in many supplemental retirement programs.
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1) The annuitant's retirement years, as an income stream.
2) In an IRA, to fund it.
3) If self employed, in a Keogh-type retirement plan.
4) Pensions plans, when used by businesses to fund them.
5) Next to a pension plan, to supplement it.
6) After the sale of a home or business.
7) By grandparents, to pass money to grandchildren.
8) If a variable annuity, for growth.
9) When receiving a lottery prize, life insurance proceeds, or bonus.
10) When unable to qualify for life insurance.