How about these right… I think you’ll find the following nuggets of wisdom particularly insightful. Leave your comments below. Check out the second one in particular…

Annuity Analytics: What is a Guaranteed Rate Really Worth?

Secondly, multiply the worst-case-scenario guaranteed income amount — which is guaranteed income base times lifetime income rate — by the market's annuity factor at age 65 (or whenever you plan to start the income). …

Enhanced annuity rates; the best annuity rates for those having …

How do you get the higher annuity rates? Well, one thing an annuity provider, an insurance company, is looking at to form an annuity quote, is your life expectancy. There are series of various contributory factors which make up how an …

Longevity risk continues to grow – Society of Actuaries – on …

The life expectancy mentioned above may be higher than the ages commonly cited, but there are two important factors that elevate it. First, annuitants are healthier than the general population because annuities are generally purchased …

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Have a great day!

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A Simple Way To Rescue Your Underperforming Annuity

It was only a few years ago that interest rates plunged to historic lows. Conservative investors who needed guaranteed income and preservation of principal were in a bind. In many cases, returns at the bank were below two percent and fixed annuity accounts yielded only marginally better. Many of these cautious investors purchased fixed annuities rather than bank instruments in order to capture higher returns.

How times have changed. The United States economy improved significantly. Inflation pressure grew, and the Federal Reserve began to ratchet up interest rates while treasury yields increased in kind. While much of this was good news, it created problems for the annuity purchaser from just a few years ago.

Concerns with Older Annuity Accounts

If you invested in a traditional fixed annuity account during these low yielding years, you may find yourself in a dilemma. The problem: many of these accounts have fallen to their guaranteed minimum yields. Currently, they might only offer a paltry return between 2 and 3.5 percent. There are several reasons for this decline. To begin with, many annuity accounts have a first year bonus that will not be paid in subsequent years. In addition, these accounts often provide a floating rate of return. Their returns are not locked in. A floating rate annuity is quick to go down in years where yields are decreasing, but slow to come back up when yields in the treasury market increase. In essence, if you purchased an annuity in the lean years, you may have locked in poor yields for the duration of your account.

There are other issues as well. If your annuity has not reached maturity, you will have to pay surrender penalties if you cash in the account early. In addition, if you purchased a non-qualified annuity account, you may have accumulated tax deferred interest. Should you transfer your annuity to anything another than another annuity account, you could have income tax to pay. Taxes and penalties will quickly lower your account value upon early surrender.

How to Improve Your Fixed Annuity Returns

Rest assured ─ this is not a story of doom and gloom. The fix to this problem is simple. You simply exchange y
1000
our old annuity for a new account. Rates have increased dramatically over the last three years, and newer annuities can lock in much higher yields. Furthermore, it may be a wise decision to lock in rates with a guaranteed fixed yield as oppose to a floating rate of return.

Unless your account is very new, the higher guaranteed yields can more than make up for any surrender penalties your may have. A sizeable account can accumulate thousands of additional dollars by making this change. (It is important to note that many economic pundits are already predicting that the Federal Reserve Board will begin to lower rates in 2007. This will most certainly force treasury markets and annuity yields lower for those who have not locked in higher rates.)

Income Taxes on Tax Deferred Interest ─ 1035 Exchange

Additionally, if income taxes are a concern, you should understand that taxes are not due if you transfer your old non-qualified annuity to a new annuity account. This is why owners simply transfer from one annuity to another in what the I.R.S. has deemed a 1035 tax-free exchange. Income taxes will only be due if and when you decide to take out your interest. If yours is a retirement account (also called a qualified account) you can simply perform a rollover. If done properly, (with the help of an experienced agent and/or accountant), a qualified rollover is not a taxable event either.

In summary, no longer do you need to dread your quarterly annuity statements. There are several reputable insurance companies providing very reasonable guaranteed returns. These products will provide you with higher yields, potentially shorter durations, liquidity and peace of mind. An annuity rollover or 1035 exchange can be a wise investment choice.

By: Insure Plan

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A.M. Hyers has been working in the insurance and investment industry for nearly ten years. He owns and operates Ohio Insurance Plan, an independent insurance agency doing business in Ohio, Missouri and Georgia.

His agency offers products to individuals, families and any size employee group. They use the leading national insurance carriers to offer quotes, illustrations and relevant information on life insurance, health insurance and HSA accounts. They also offer disability and long term care insurance as well as annuity policies, Medicare supplement plans and Medicare Part D coverage.

Visit them at:
www.ohioinsureplan.com

Current fixed annuity rates

Learn more about fixed annuity products

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Rising interest rates are another reason to avoid Equity-Indexed Annuities. If you are retired or near retirement, don’t let yourself be talked into purchasing an Equity-Indexed Annuity. If you do, it could easily be a decision you regret for many years to come.

I’ve been called ‘a lone voice in the wilderness speaking out’ about the dangers of equity-indexed annuities. It seems that everywhere you turn there is an advisor or insurance agent telling you an equity-indexed annuity is the greatest thing since sliced bread. Don’t believe them.

I’ve talked at length in other articles about the hidden dangers in Equity-Indexed Annuities. You can find those articles at http://www.guardingyourwealth.com, but the 3 main reasons are (1) they needlessly require you to lock up your money for a very long time, (2) the majority of your returns are still based on the stock market and (3) the commissions for selling an Equity-Indexed Annuity are so high it creates a tremendous conflict of interest for those recommending them. Rising interest rates are just one more reason. Let me explain.

Equity-Indexed Annuities eliminate your flexibility and control over YOUR money. In today’s post-9/11 world where terrorism is a very real threat, it’s important that you have the ability to make changes to and access all of your money when you need to—without incurring surrender penalties that can be as high as 20%! Locking your money into an Equity-Indexed Annuity for 10-15 years causes you to lose control of all but a small portion of it. Equity-Indexed Annuities don’t offer enough reward in exchange for such a long-term commitment.

The main selling point of an Equity-Indexed Annuity is the ability to participate in the return of the stock market but have a ‘guarantee’ that your money will earn at least 3%. The performance of these investments is designed to come from the stock market, not the guarantee. If you are willing to invest in the stock market, I feel there are better ways to do so which provide downside protection while allowing you to retain complete control and flexibility. (Contact me for more information.)

Rising interest rates is another reason you shouldn’t invest in an Equity-Indexed Annuity. Over the past 3 years, the thought of earning a 3% fixed return on your money didn’t sound too bad. Certificates of Deposit at the local bank have only been paying 1% or 2%. That’s made it difficult for those relying on that income to meet their monthly needs. Equity-Indexed Annuity salespeople have used this as a main selling point.

But things have changed. The Federal Reserve recently increased the Federal Funds interest rate by one quarter of one percent. That may not sound like much, but it’s the first time they’ve raised rates in four years. They also signaled that the economy is heading in the right direction and that they’ll continue to raise interest rates over the next few years as necessary to keep inflation in check.

The interest rates available on Federally Insured Certificates of Deposit (CDs) have already risen significantly. You can earn almost 2.5% on a 1-year CD and over 3% on a 2-year CD. The futures markets project that Federal Funds interest rates could be as high as 3% by the end of 2005. That’s means it is likely that you’ll be able to get a 1-year CD for over 4% and a 2 or 3-year CD for 5%.

Think about it—if you can earn 5% on a short-term, Federally-insured Certificate of Deposit, why would you want to lock your money up for 10 to 15 years with a guarantee of only earning 3%? Especially if you’d have to pay a penalty that could be as high as 20% to get at more than just a small portion of it! It just doesn’t make sense.

For those needing income, now is the time to be patient. Use short-term investments like Certificates of Deposit that mature in 1-year or less. When they come due, chances are rates will be significantly higher and your patience will be rewarded.

If you’d like me to answer specific questions about your financial situation, feel free to email me at jeff@guardingyourwealth.com or call 1-877-827-1463. I regularly respond to readers’ questions and would be happy to answer yours.

Mr. Voudrie is a Certified Financial Planner, nationally syndicated newspaper columnist and President of Legacy Planning Group, Inc., a Private Wealth Management Firm in Johnson City, TN.

Nationally-syndicated financial columnist and Certified Financial Planner® Jeffrey Voudrie provides personal, in-depth money management services and advice to select private clients throughout the USA. He’ll answer your financial question – FREE at http://www.guardingyourwealth.com

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So You’re Shopping For A Car
 by: ARA Content

Whether you buy or lease, save money on the deal with tips from IHateFinancialPlanning.com

(ARA) – For many Americans, a car is the second largest purchase they make. Advertisers devote millions of dollars to convince us that we deserve to own the hottest set of wheels. The same people who used to yell, “I want my MTV!” are now shouting, “I want my SUV!”

But step inside a dealership, and confident car shoppers are like deer in headlights when confronted by aggressive sales people, confusing financing decisions and a fear of buying more than they can afford.

IHateFinancialPlanning.com, the Web site for the three out of four Americans who hate financial planning, can help sort out the financial aspects of buying and leasing cars. While you crave an SUV, you may discover that the cost of insuring it and filling its huge gas tank will blow your budget off the road.

IHFP offers the following tips to make sure you don’t get caught in the headlights:

Get Your Records Straight

One of the first steps in financing a car is to get a grip on your credit rating. Unless you intend to pay with cash, you will have no secrets from the car dealership, finance company or auto insurer. A poor credit history can result in a higher interest rate or even loan disqualification. Also, bad marks on your credit could flag you as an insurance risk, translating into higher premiums.

“There are numerous resources available to help you understand and manage car financing,” says Suzanne Hunstad, of IHateFinancialPlanning.com. “Armed with knowledge, you can determine if your loan will be approved, and at what interest rate, and also catch any glitches that could be making your credit history look worse than it is.” Hunstad suggests contacting the major credit reporting agencies to obtain your credit report and taking steps to clean it up if necessary.

Cut Your Premiums Down To Size

Before you buy a car, find out what it will cost to insure it. Get car insurance quotes and calculate your insurance needs on the Internet. Each state has different requirements when it comes to auto insurance, and we’ll leave it up to you to learn what your state requires. But every state has some sort of financial responsibility law that says you need to take care of any accidents you might have.

To Buy Or Lease, That Is The Question

When you lease, you’re paying to use a car. Your payments cover the cost of the vehicle’s depreciation while you drive it, rather than its purchase price. If driving a new car is more important to your lifestyle than owning one, leasing is definitely for you. However, if you put a lot of miles on a car every year, it may end up being smarter for you to buy. Consider your personal expectations and financial situation when reviewing the pros and cons of each:

Buying Offers:

A chance to trade in that old clunker.

Ownership and equity in the car.

Control of your wheels. If you want to add eight speakers or take out the backseat, go ahead.

No penalties if you don’t hold up your end of the maintenance agreement, although you will want to service your car to enhance both its service to you and your ability to sell it in the future.

No mileage limits.

Payments based on the value of the car, not its depreciation. That may mean higher monthly payments than with a lease.

Leasing Offers:

A cost-effective alternative to buying a car every few years.

An affordable way to drive a car that you may not be able to afford to buy. Monthly lease payments are generally less than financing payments.

A maintenance contract that requires you to keep the car in good shape and not make any alterations to it.

A factory warranty that almost always covers the car for your entire lease, so major maintenance isn’t your financial responsibility.

Annual mileage limits (about 12,000 to 15,000) with significant penalties if you put more miles on it than the lease stipulates.

Payments that may be income tax deductible if you’re leasing the car for business. Ask a tax advisor for details.

Penalties if you terminate the lease earlier than agreed. Charges vary.

Financing Is The Next Step

Whether you buy or lease, be prepared to walk away from the deal if you aren’t convinced you’re being offered a fair price. Do some homework before you walk in — car salespeople are amateur psychologists who’ll get inside your head if you let them, all in the name of making a buck.

“If they see you drool over a leather interior or if you don’t know the Kelley Blue Book value of your trade, they’ve got you right where they want you,” Hunstad says. The Internet is a good resource for your research. Use Edmunds.com to comparison-shop and find each model’s true market value, i.e. the price of the car in your area. It’s usually a different number than either the invoice price (what the dealer paid) or the sticker price (what the dealer wants you to pay).

Once you’ve got those numbers down, try IHateFinancialPlanning.com’s loan calculator to help you compare interest rates, monthly payments and overall purchase price. Don’t get emotionally attached to your car salesperson or the loan officer at the car store. Keep this a business decision. Shop for the best interest rate at your local bank or credit union, or use online banking to comparison shop.

About The Author

Courtesy of ARA Content, www.ARAcontent.com; e-mail: info@ARAcontent.com

EDITOR’S NOTE: For More Information, contact Maclaren Latta, Carmichael Lynch Spong, (612) 375-8570, mlatta@clynch.com.

About IHateFinancialPlanning.com

IHateFinancialPlanning.com is a Web site that’s already helped more than 2.3 million people who hate financial planning make sense of their personal finances through fun, friendly, easy-to-understand content and financial planning tools. The Web site was developed by ReliaStar Financial Corp., a member of the ING Group.

About ING Group

ING Group is a global financial institution active in the fields of insurance, banking and asset management, with more than 100,000 employees in 65 countries. ING provides a full range of integrated financial services for its clients through a variety of distribution channels. In the United States, ING’s product and service portfolio includes banking, fixed and variable annuities, investment management, life insurance, mutual funds, personal finance education seminars, and trust services. For employers, ING businesses also offer a full range of retirement and other worksite benefits, including group insurance products. For more information, visit www.ing-usa.com.

Securities available through PrimeVest Financial Services, Inc., Member NASD/SIPC. Carmichael Lynch Spong is not affiliated with PrimeVest Financial Services, INC. and is not a member of the ING Group.

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Back with more news for you today. It’s amazing how much good information there is on this stuff out there if you know where to look. Three in particular that I found really valuable were…

Donate Stock or Mutual Funds

Appreciated securities may also be used to fund gift plans that provide payments for life or a number of years, such as charitable gift annuities, … Read More…

FINRA can help you become a smarter investor

Do you know how much you need to regularly save to fund your retirement or your children's education? Try FINRA's retirement calculator, savings calculator … Read More…

SEC site offers financial information

You can try your hand at getting a ballpark estimate on the Retirement Calculator and on the Mutual Fund Cost Calculator. Try your luck on the Scam Meter … Read More…
That’s all the news for today guys, so until next time, thanks for stopping by.

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I hope you’ve been enjoying my posts lately. I thought I might do something different today and rustle up a few bits of info from around the WWW. These are some of the news items and blog posts that have been popular over the last few weeks. Leave me your thoughts.

How Do Your Annuity Rates Compare?

Fixed annuities are paid out in two forms; the deferred payout which defers payment to a later date and the immediate payout which pays upon origination. Both generally base their rates on current market conditions and time to maturity … Helpful Guidance And Understanding Of Unsecured Debt Consolidation Loans By: Steve Smith | Nov 5th 2009 – An unsecured debt consolidation loan is when individuals consolidate their debts into one monthly payment without collateral being …

Present value Annuity – Math Help Forum

Monthly Accumluation: r = 1 + i12 = 1.0075. These are all the tools you need. Last Payment is worth 115*r. Second to last payment is worth 115*r^2. Third to last payment is worth 115*r^3 …are we seeing a pattern? …

How to Earn Income for the Rest of Your Life: The Good, Bad, and …

That is, you can deposit the money into the annuity and it will sit there and earn tax-deferred interest at the specified rate. Once you annuitize it you lock in that guaranteed monthly/annual payment for life and the interest rate …

Hope you enjoy the read as much as I did and please if you have something to say, use the comments form below to let everyone know your thoughts.

Have a great day!

Technorati Tags: Annuity, annuity calculator monthly payment, news, payment, present value annuity, Steve Smith, unsecured debt consolidation, unsecured debt consolidation loans

I hope you’ve been enjoying my posts lately. I thought I might do something different today and rustle up a few bits of info from around the WWW. These are some of the news items and blog posts that have been popular over the last few weeks. Leave me your thoughts.

Test-Driving Retirement Plans

To create a bigger safety net, Fidelity told us to put $370000, or about 30% of the couple's $1.193 million nest egg, into a fixed immediate annuity, … Read More…

SEC site offers financial information

You can try your hand at getting a ballpark estimate on the Retirement Calculator and on the Mutual Fund Cost Calculator. Try your luck on the Scam Meter … Read More…

Taxing situation

RBC offers some retirement planning tools, including a cash-flow calculator that allows you to gauge various scenarios based on differing expenses or income … Read More…
That’s all the news for today guys, so until next time, thanks for stopping by.

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The Best Ways To Sell Your Annuity

The primary reason why a person is selling an annuity is to receive lump sum cash from it. The first question to ask is: Am i selling the entire annuity or just a partial of it? You are assured of acquiring a large sum of money on either way. Having a plan for your investment strategy and diversification for your assets is highly recommended to increase the profit potential.

Selling annuities is more about having leads. You will not survive if you will not have a stable stream of qualified leads. Lead hunting can be an important tool but it can also be a hard thing to do. A second tool to a successful annuity selling is having an effective closing system. Leads that cannot be converted to sales and commissions are worthless. Closing of deals will not really be possible without a good system.

People sell annuity payments oftentimes to have a large purchase. You can get a lump sum amount in one payment instead of having monthly payments. This is more helpful especially if you want to finance a huge down payment or you want to purchase a home or a vacation property.

The first option on selling annuity is to look for a reliable company that can sell it for you. Larger companies can easily sell annuity since they have the experience and funds that can make it happen. The downside however is that they collect certain fees for it. Another disadvantage is that you may not acquire the large amount you hoped for in your annuity.

Another way of selling your annuity is by direct selling. Although this is not a popular method because it is a tedious one; (since you will need to seek for reputable buyers), many still opt for this method. This method also involves many legalities in few cases but you can do this process on your own.

There are still other means to sell your annuities. You can exchange your annuity. This is a good choice if you cannot sell a standard settlement for a lump sum. If your annuity selling is not working, you can also choose to make a full swap. This includes exchanging with an individual or a company for the annuity that will be easier for you to sell directly.

You can also use your annuities as loan collateral. Although this is not that recommended, if you are willing and if interest rates are low, it may be a feasible option. This process will giv
1000
e your annuity a higher yield and you will be able to receive your lump sum and use it any way you want.

You must be creative when selling annuity plans and the good news is you can do this on your own. Having an expert’s advice however will also be worthwhile. Mastering your selling strategies will ultimately bring you huge sum of money you can really enjoy.

So start learning your selling strategies now and be profitable!

By: Joahana Mogla

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Article provided by Annuity Sell your source of information about annuity selling

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What Is An Annuity Calculator?

Who does not want to retire in style? You might have dreamt of retiring as a millionaire in a grand house and with health and other securities in place so that at the old age you do not have to depend on any body else or the meager means of social security. Thinking that it is not possible with your present income? Everything is possible if you take up a proper retirement planning at the proper time. An effective retirement planning starts with the annuity calculation. Annuity refers to a particular type of retirement plan, where you require to invest a particular amount every year with the interest rate remaining fixed throughout. An annuity calculator is a tool to help you calculate how much income you might obtain out of the amounts saved, after retirement.

You reach a particular age when the responsibilities increase and you start to think about what schemes you should subscribe to that provides you with an adequate income after retirement. In many organizations, the employer provides for a pension scheme, where some portion of your salary is taken out and added with company’s contribution to be saved in a pension fund and you get a monthly income from that fund after your retirement. But if your employer does not have such a scheme, or you are self employed, then you have to consider investing in a personal pension scheme. But before making any investment in any such scheme, you have to consider many points.

The first thing to consider is how much money you should invest in a pension scheme? Then you have to check carefully the estimated pension. Remember, you always get to see only the estimated figures in any Pension Calculator; they are not any guaranteed sum. The actual annuity income that you start to derive many years later is affected by such economic factors as interest rates, inflation and investment growth. For this annuity calculation is based on certain assumptions about the future on the basis of current economic scenario.

The common assumptions used in most of the annuity calculators are:
Investment growth, inflation rate, pension fund charges by the Provider Company, income tax rebates, Annuity rates and life expectancy.

The annuity calculator is also based on certain assumptions about you. It assumes you will be able to make a regular payment on a particular interval from the time of joining the scheme till the time of retirem
1000
ent. Another assumption is your payment increases each year to keep with the increased rate of interest.

Then you have to know whether your pension income will be worth to meet with the expenditure of tomorrow as with the increase in inflation rate, the buying power of money diminishes. Thus what you actually need to know is the actual value of your pension income at the time of retirement. Different annuity calculator takes different rates of inflation to work out the actual buying power of your estimated pension income at the time of your retirement.

In most of the annuity calculator four variables are used and values of the three variables are to be filled up by you and the calculator works out the value of the unknown variable. As a whole, annuity calculator is an extremely useful tool to let you know how accurately your present investments can be fitted into tomorrow’s world.

By: Kaye Trout -

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Visit these websites for more info on annuity calculators, online annuity calculators and handy annuity calculators.

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