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After annuitization: Annuity payments are

18/06/2015 - 03:40 - Politics /
The word annuity has its origins in a Latin term that means annual. Today nike air huarache blancas baratas , an annuity is an investment product sold by insurance companies. Annuities can be purchased through a series of contributions or in one lump sum. The money put into the annuity contract is allowed to grow for a period of time. Then, at a future date, the contract is annuitized and annuity begins paying an income through periodic payments over a specified period of time or for a lifetime. The interest For example: 75 of the Standard and Poor s index increase for the calendar year means that if the Standard and Poor s 500 index increases 10 for the year, the contract receives a 7.5 increase in credit. Often nike flyknit lunar 3 baratas , the rate is 100 . The insurance company can change the participation rate. Cap rate: The annual maximum increase in percentage allowed. For example, if the contract s cap rate is 7 and the chosen market index increases 15 , then the increase is limited to 7 . The insurance compits: If annuitant (contract owner) dies before the annuity begins paying, some contracts pay the named beneficiary the greater of the investment (less withdrawals) or the contract value on the death date. Regulation: Even though the stock market influences the EIA nike flyknit lunar 2 baratas , the laws that regulate securities, such as stocks and bonds, do not currently apply to an EIA. This may change on January 12, 2011. Rule 151A, if it stays alive, would bring EIAs within the influence of federal security laws. This would mean that a prospectus explaining how annuity contract works nike lunarglide 6 baratas , detailing the risks, and lists all charges that may be levied must be provide to the buyer. And only those who have both a securities and insurance licenses may sell EIAs. Contract fees and charges: Even though many EIA s do not in a redemption that s less than the principal amount invested. Taxes on Annuity Payments: How payments from an annuity may be taxed varies, depending on the life cycle of the annuity. Based on federal law nike flyknit trainer+ comprar , generally the following rules may apply: Before annuitization: Any funds withdrawn from an annuity contract prior to annuitization (before payments begin) are considered to be from interest or other growth. These earnings are taxable just like ordinary income. If the annuity owner ie the owner has completely recovered his or her investment , all remaining paymedited gains cannot be lost, 4) Guaranteed minimum interest nike flyknit lunar 1+ comprar , 5) Liquidity features (nursing home, critical illness & 10 annual withdrawal), 6) Taxes not due until withdrawal, 7) Avoidance of Probate, 8) Protection from creditors, 9) No annual fees (other than the cost of the rider depending on the carrier) and 10) guaranteed income you (or you and your spouse) cannot outlive. When you are in the market for an Equity Indexed Annuity you will find that there are many different options available nike air huarache homme , choosing the one that will best fulfill your goals for investment will require due diligence. This is why it is very important that you have a financial advisor whom you trust a