Sentences with phrase «as annuity payments»

Not exact matches

First, the $ 650 million jackpot is paid out as an annuity, meaning that rather than getting the whole amount all at once, it's spread out in smaller — but still multimillion - dollar — annual payments over 30 years.

Which is why I contend it makes more sense to think of an immediate annuity as part of a comprehensive retirement income plan that works as follows: Put a portion of your savings into the annuity and opt for the highest monthly payment.

As with an income annuity, your payments are guaranteed — but you won't lose access to your money.

These annuities offer you a steady payment that will last as long as you live or for a certain number of years.

Investors should only buy an annuity contract for the annuity's additional features, such as lifetime income payments and / or death benefit protection.

A return of premium rider is available for an additional cost, but the income from these vehicles will be taxed as ordinary income in the same manner as other types of annuity payments.

Pension disbursements and annuities may be claimed so long as they will continue for at least another 36 months, as can social security and disability payments from the federal government.

The amount of income you receive from an immediate annuity depends on factors such as your age, gender and the length of your payment period.

Under these circumstances, you should only consider buying a variable annuity because of its other features, such as lifetime income payments and death benefit protection.

However, income annuities (sometimes referred to as «immediate annuities» or «deferred income annuities,» depending on when income payments begin) do offer a predictable guaranteed stream of income that you can't outlive.

If the rate over the 20 years was 8 %, for example, the available tenure payment would be $ 5738, or more than twice as large as the longevity annuity payment.

The money in your annuity — which you invest as a lump sum or through a series of payments, depending on the policy you choose — generates a stream of income paid to you for your lifetime.

For the purpose of evaluating Medicare tax exposure, it's important to know that «unearned» net investment income includes net rental income, dividends, taxable interest, net capital gains from the sale of investments (including second homes and rental properties), royalties, passive income from investments in which you do not actively participate (such as a partnership), and the taxable portion of nonqualified annuity payments.

«We also believe that there will be a greater emphasis placed on benefit riders with variable annuities to validate their compensation payments, as the Department of Labor has expressed skepticism regarding the tax benefits of certain products when used within tax - qualified accounts,» the report says.

In making this type of a gift, the Dodds will receive steady, guaranteed lifetime payments from the annuity — a tax - advantaged way to provide income during their retirement as well as to support the school's mission.

If your beneficiary chooses to receive the death benefit as an annuity, that means he or she wants to divide up the payments across a number of years of his or her choosing.

But if you're covering most of your essential expenses from Social Security, pensions and (if needed) annuity payments, you should have flexibility to adjust withdrawals as needed.

Purchasing a life insurance annuity is less popular than simply accepting a lump sum, as there's not a huge advantage to choosing such deferred payments when the lump sum is tax - free.

If you die during the guarantee period, the annuity will continue to make income payments until the end of the selected guarantee period or you could select that the remaining payments are paid as a lump sum (this option is not permitted where the guarantee period is 10 years).

Because in addition to interest and return of a portion of your principal, each annuity payment effectively contains an extra little amount known as a «mortality credit» — essentially, money transferred from annuity owners who die early to those who live long lives.

Just as some banks pay higher rates of interest on savings accounts and CDs, so do some insurers make higher payments on their annuities.

The installment / annuity: Your beneficiary can also request to receive the payments in installments, such as monthly or annually.

If you inherit an annuity, the same portion of each payment will be taxable or tax - free as was true for the original owner.

But what really differentiates an immediate annuity from the example above is that no group of people pooling their assets can guarantee that they'll receive a scheduled payment as long as they live.

A general right to receive periodic payments from a superannuation interest such as a pension or annuity.

As you cut back on work, replace the work income with things like annuities and reverse mortgages that will pay out over time in exchange for a lump payment.

A 65 - year - old man who invests $ 30,000 in a longevity annuity today that begins making payments 15 years from now would receive roughly $ 675 a month at age 80 that would continue for the rest of his life; a 65 - year - old woman would receive about $ 575 a month starting at 80; and, a 65 - year - old couple would collect about $ 465 a month beginning at age 80 for as long as either remained alive.

You only pay tax on the annuity payments as they're made to you.

You (the annuity owner) make a lump - sum payment or a series of premium payments to an annuity issuer (the insurance company), which will accumulate earnings at a fixed interest rate (a fixed annuity) or a variable rate determined by the growth (or losses) in investment options known as subaccounts (a variable annuity).

I keep hearing conflicting answers as to whether I should take my pension as a lump sum or monthly lifetime annuity payments.

That probably wouldn't make sense, as you would no longer have access to your $ 1 million for emergencies and such (although in return for a smaller payout some annuities do provide at least some access to principal or allow for payments to continue after death).

You can move your annuity to us as long as you have not started receiving payments from your existing annuity.

Of course, the ideal solution for many people may be to split their pension — that is, take a portion as a lump sum and the rest in annuity payments.

A 65 - year - old man who invests, say, $ 100,000 in an immediate annuity today would receive about $ 550 a month for life; a 65 - year - old woman would get about $ 530 a month; and a 65 - year - 0ld man - and - woman couple would receive monthly payments of $ 470 as long as either is alive.

The payment for life option with return of premium allows you to receive payments for as long as you live, even after you have received payouts totaling more than what you initially put into the annuity.

So an annuity payment includes not just investment gains and the return of your original investment, but this additional «mortality credit» income as well.

As a result you can draw on your nest egg more aggressively, including the payments you receive from your annuities plus withdrawals from the rest of your portfolio.

Ask them for payout levels on inflation - adjusted immediate annuities, and watch your jaw drop as you see how relatively low the payments are.

All else equal, annuity payments are smaller when interest rates are low as is the case today (which no doubt accounts for the fact that immediate annuity sales have been declining lately, falling almost 20 % the first half of this year).

So in practical terms how do mortality credits as well as an annuity's guarantee of a steady lifetime payment translate into an edge over simply investing your money and carefully drawing it down?

So when setting annuity payments, insurance company actuaries are able to include what are know in insurance circles as «mortality credits,» essentially money that would have gone to annuity owners who die early but that's instead transferred to those who live longer.

Which means that the annuity payment you receive includes not just investment gains and the return of your original investment, but mortality credits as well.

With an immediate annuity, for example, you invest a lump sum with an insurer in return for monthly payments that start at once and continue as long as you live.

Direct deposit is the easy, convenient, and secure way to have recurring payments (such as paychecks, Social Security, pension and annuity payments) deposited right to your Tower Federal Credit Union checking account or savings account.

You may even be able to defer your income payments up until age 85 and reduce required minimum distributions, when purchased as a qualifying longevity annuity contract (QLAC).

One of the most common misconceptions about annuities is that to guarantee the monthly income payments you forego access to your principle in an emergency or to pass on as an inheritance.

Most fixed annuities have two phases: the accumulation phase, during which your investments have the potential to grow tax - deferred and the distribution phase (also known as annuitization), during which you receive income payments or a lump - sum payment.

If the annuity generates monthly payments, for example, the interest rate must also be expressed as a monthly rate.

The lump sum premium payment is an attribute of immediate annuities and ALSO means that they fall into the category of non-qualified annuities as compared to qualified annuities.

If the annuity generates annual payments, for example, the interest rate must also be expressed as an annual rate.