Sentences with phrase «immediate annuities because»

Lump sum payments are only used for immediate annuities because multiple payments are not practical with no accumulation phase.

People buy immediate annuities because they are looking for a pension type income stream.

Lump sum payments are only used for immediate annuities because multiple payments are not practical with no accumulation phase.

But if you've rejected an immediate annuity because you think you can generate the same level of guaranteed lifetime income investing on your own, I have two little words for you: mortality credits.

Many people are reluctant to invest in an immediate annuity because they don't want to tie up a big chunk of their savings.

Not exact matches

New low - cost deferred variable annuities «deserve to get more respect,» insisted Pfau, but he singled out the immediate annuity — also called an income annuity or a life annuity — as packed with the most potential because it offers «a ton of benefits to consumers.»

You can rebalance your portfolio without immediate taxation concerns because taxes on your earnings are deferred until you start withdrawing from the annuity.

But he singles out the immediate annuity — also called an income annuity or a life annuity — as packed with the most potential because it offers «a ton of benefits to consumers.»

Economists love immediate annuities — aka income annuities — because they're an efficient way to turn savings into lifetime income.

Because the accumulation phase of an annuity takes some time, a deferred annuity is often deemed NOT suitable for a retiree who requires immediate income.

Because you won't collect those payments for many years down the road, the amount you have to put into the deferred income annuity is much smaller than what you must invest to receive the same monthly payment from an immediate annuity.

Just because the mere thought of an immediate annuity makes your eyes glaze over doesn't mean you shouldn't consider one for your post-career portfolio.

One more note: most insurance agents will never suggest immediate annuities to you because when you buy one, that's the last commission the agent ever gets.

Because of the deferral period, you may get a higher income payment amount than you would from a comparable immediate fixed income annuity with the same initial investment.

With an immediate need annuity, you don't have to worry about outliving your money because the monthly payments continue for the length of your life.

Here's the shortest bottom line on all forms of annuities and all forms of whole life insurance: If you work in the life insurance business, either as an agent or an employee of a life company, or hold life insurance company stock; then annuities and whole life insurance are the greatest invention since the wheel (because they pay by far the most in immediate commissions of any financial product available today, making them by far the most profitable part of the life insurance company business model).

Because the payments start later, you can get relatively large payments in the future for a much smaller upfront premium than with an immediate annuity.

Because you purchase an immediate annuity in one initial deposit, you don't have an accumulation phase.

Because immediate income annuities guarantee a specific income amount, they offer very limited access to withdrawals, and only for some annuity options.

Because of the mortality credits accrued during the deferral period, the time period between the purchase of a longevity annuity and when the longevity annuity payout begins, longevity annuities can be more efficient over the long run than immediate annunities, all else being equal.

Immediate annuities are sometimes referred to as single premium immediate annuities, because you make the upfront investment (the «premium», in insurance terminology), and then begin receiving benefits (income payments).

Another option to consider is a deferred annuity because a deferred annuity could increase in value for a period of time with the benefit of being annuitized or ten - thirty five (1035) exchanged to an immediate annuity.

Immediate annuities are funded with a single premium and the ASD would be immediate (because every annuity contract is an ASD).

Many people roll over tax qualified funds into a «tax - deferred» immediate annuity, because in many cases the user only pays taxes when they receive the monthly payment (so taxes are spread over time) and they only pay taxes on the portion of their payment attributable to tax qualified deferred income.

Because some investors get queasy about a variable annuity's unpredictable payouts, some immediate VAs guarantee a percentage of your first payment.