I've long believed that
certain types of annuities can often play a valuable role for people in or nearing retirement by providing guaranteed lifetime retirement income regardless of what's going on in the financial markets.
Finally, the fees that go along with purchasing
certain types of annuities can eat up a significant part of your earnings.
It is important to understand that
certain types of annuity contracts may be deemed inappropriate for certain types of consumers.
Not exact matches
The final DOL regulation «unfairly targets
certain types of fixed
annuity products, making it harder for Americans to purchase fixed indexed
annuities when it is in their best interest to do so,» he said, adding that «this legal challenge is necessary because the rule creates an unworkable standard for independent agents and insurance companies and goes far beyond DOL's authority.»
These will either be severely restricted or prohibited: Higher priced, more complex products that have issues
of liquidity and lack
of transparency, such as non-publicly traded REITs, variable
annuities, proprietary products or limited partnerships
of certain types.
They've been getting a lot more attention lately, however, because the U.S. Treasury Department issued rules last year that make it easier and more attractive to buy a
certain type of longevity
annuity within retirement accounts such as 401 (k) s and IRAs.
Immediate
annuities are the least common
type of contract and only suitable in
certain situations.
Period
certain annuity — This
type of immediate
annuity guarantees that the contract pays out for a
certain period
of time.
Thus, the only
type of annuity that allows the insurance company to keep the undistributed balance
of the investment when the owner passes away is a lifetime immediate income
annuity account with no period
certain.
* Tax deferral offers no additional value if an
annuity is used to fund a qualified plan, such as a 401 (k) or an IRA, and may not be available if the
annuity is owned by a «non-natural person» such as a corporation or
certain types of trusts.
It also may not be available if the
annuity is owned by a «non-natural person» such as a corporation or
certain types of trusts.
On the contrary, I've long believed that in
certain situations the right
type of annuity can play a legitimate role in a retirement portfolio.
Annuities charge a number
of different
types of fees, along with penalties for
certain withdrawals, so make sure the benefits you are receiving outweigh the costs.
These include life insurance and
annuities, as well as
certain types of health insurance.
This
type of immediate
annuity pays the annuitant for a designated number
of years (i.e., a period
certain) and is used to fund a need that will end when the period is up (for example, it might be used to fund the premiums for a term life insurance policy).