Sentences with phrase «value of an annuity on»

The cash value of an annuity on its annuity date — the date it begins paying out — consists of your premiums plus any interest on those payments minus fees and the cost of insurance.

Not exact matches

And he knew that he was paid based on one thing and one thing only: the value of annuities he sold.

The NERA report goes on to say that to calculate the aggregate estimate, «the authors of the report take the total value of load mutual funds in IRAs, plus the total value of annuities in IRAs, [which] at year - end 2013 stood at approximately $ 1.7 trillion.

Historically, advisors have been compensated for the sale of variable annuity products on a commission basis, which is believed to motivate advisors to recommend products because of their high commission value, rather than because they are in the client's best interests.

With an enhanced benefit, the insurance company will record the value of your annuity's investments on each anniversary of your annuity's start date.

Variable annuities provide the potential to grow your assets and defer paying taxes on the earnings until you withdraw them as income.1 A diverse menu of professionally managed investment choices allows you to invest your contract value in a way that reflects your goals, time horizon, and risk tolerance.

While fixed annuities offer the opportunity to accumulate value at a fixed rate of interest, variable annuities offer investment flexibility that might generate higher rates of return, based on the performance of your underlying investments.

Financial advisors ran searches on single premium income annuities valued at an average of $ 231,000 last year, according to a 2011 report from an income annuity database...

If $ 300,000 has been contributed on behalf of a teacher (including accumulated returns), then the cash value of an annuity provided to this teacher should also be $ 300,000.

In setting your initial withdrawal rate, you'll also want to consider how much of your expenses you can cover from Social Security and any pensions, what other resources you have to draw on (home equity, income from an annuity, cash value life insurance, income from a part - time job) and how much of your retirement spending goes to essential expenses that you would have a hard time trimming vs. discretionary items that leave you with a lot more leeway cutting back should you need to in the future.

The Annuity Calculator on this page is based on the time - value - of - money or «finance theory» definition of annuity.

4) The second article went over the value of immediate annuities as risk reducers to retirees, something I commented on recently.

And after the 2008 financial crisis, index annuities were pitched as a way of betting on stock indexes with no risk of loss, a big draw after the U.S. market had lost half its value in a little over a year.

Most annuities have charges associated with withdrawal of funds and may have market value adjustments based on movement in interest rates.

On one end of the spectrum is the fixed index annuity which offers a conservative contractual rate of return applied to the account or cash value growth.

In the world of annuities, there are a few different types of contracts which vary based upon how the cash value is accumulated on a tax deferred basi...

While fixed annuities offer the opportunity to accumulate value at a fixed rate of interest, variable annuities offer investment flexibility that might generate higher rates of return, based on the performance of your underlying investments.

On the opposite end are variable annuities which carry more risk of investment loss AND also may offer the opportunity for higher returns and cash value growth.

Sixty - one percent of people age 55 to 75 place a high value on having guaranteed income to supplement Social Security.2 For some people, annuities can be a valuable addition to a portfolio that includes Social Security, retirement savings, and other investments, because they can add an element of protection and guaranteed income.

Depending on the type of annuity, this is done by guaranteeing a minimum annual return or minimum level of income, regardless of market performance, or by cushioning the account value from a portion of market declines.

A PerspectiveSM variable annuity includes a standard death benefit equal to the contract value on the date of the claim and does not include any additional guarantees.

We also discuss the value of an income annuity, and highlight a study by Morningstar on the impact of guaranteed income on safe withdrawal rates from portfolios.

That's because money is allocated to investment portfolios available with the variable annuity, and the annuity's account value will fluctuate based on the performance of those investment portfolios.

This means that each year you will have to earn, on an after - tax basis, enough to equal the after - tax value of that year's annuity payout, according to an August 2004 article on the Financial Planning Association's website.

To the other extreme, there are variable annuities with a fixed $ 20 / mo mortality fee which on a large valued account can be a tiny fraction of a percent of the funds invested.

Continuing under the assumption that you have a defined benefit pension plan that will pay you $ 50,000 per year until you pass away I would say that your pension plan is more similar to a life annuity rather than a GIC since a GIC comes to term whereas an annuity pays until death, but if you are trying to put a value on the holding of your pension plan I would say that yes, it is fair to count it as a million dollar GIC at 5 %.

Variable annuity policyholders might be hesitant to cash in their account for fear of losing the higher value that might be passed on to their beneficiaries at passing.

The accumulation value grows as a result of the annuity's increase based on the increase of the indices the annuity is tied to after applying contractual caps, participation rates,...

GOLD SERIES SAGE CHOICE SINGLE PREMIUM DEFERRED ANNUITY — PRODUCT OVERVIEW 6 Year Single Premium Deferred Annuity Issue Ages: 15 days — 90 years (age last birthday) Minimum Premium — $ 2,000 Maximum Premium — $ 500,000 per Owner Free Withdrawal Provision («Bailout Feature»): Included in the Contract Guaranteed Minimum Interest Rate: 2 % for the first 10 years and 3 % thereafter Contract Loan — Not Available for this product Free - Look Period — 30 days Death Benefit: Accumulation Value on the date of the Owner's death.

The owners of these contracts who actually pay for such riders have the means to invest their funds in more aggressive manner, since the income they acquire from their annuities is normally dependent on the maximum value that their contracts attain before they are annuitized.

Upon annuitization, you receive payments based on the total value of the annuity.

This included overstating total fees of existing variable annuities or misstating fees tied to additional options such as riders, understating or failing to disclose the existence of an accrued living benefit value clients would lose on getting out of the annuity, and telling clients a proposed variable annuity had a living benefit rider when in fact it didn't, Finra says.

These fees are based on the daily net asset value of the annuity's underlying investment portfolios, which can change every day as the market shifts.

The investor also loses optional death benefits, contract value at death (depending on the timing of the election and contract terms the contract value could be realized over a specified period of time) and most other features purchased with the annuity.

The accumulation value of a variable annuity is based on the performance of the separate accounts (aka: mutual funds) offered by the specific product.

The cash value of an annuity account is set by the contract, similar to the cash value accumulation and life insurance, and varies between a fixed index annuity on one end of the spectrum AND a variable annuity on the other end.

But because of the limits features like participation rates and caps place on returns, the value of your annuity may grow much more slowly over the long run than had you simply put some of your money in cash and / or short - term bond funds for security and the rest in low - cost stock index funds.

The value of the annuity and amount of the benefits paid by the insurance company will vary depending on the performance of the investment options.

Pfau (2013) found that the purchase of a single premium immediate annuity can serve as an efficient substitute for the fixed income portion of a retirement portfolio by better protecting a spending level on the downside while also increasing the average legacy value of assets.

Planned giving brochures: The Heart of Planned Giving The Art of Planned Giving Transfer Your Value and Values Taking Refuge in a Trust Charitable Gift Annuities Gifts can also be made to DVIS when a donor designates DVIS as the beneficiary on their life insurance, IRA, or Pension Plan.

The Revenue's Special Commissioner later determined that the purchase of the three annuities and the vesting of them in the first to third appellants fell to be treated as a transfer for value for inheritance tax purposes, on the basis, inter alia, that they were associated operations within the meaning of s 263 of the ITA 1984.

This contrasts with a fixed deferred annuity, which earns a fixed, guaranteed rate of return on cash values.

Total Future Income Purchases For individuals who funded the Future Income rider on a variable annuity policy, the total amount of voluntary deductions from the Variable Accumulation Value used to purchase Future Income Payments.

For a variable universal life or variable annuity policy, the accumulation value is equal to the sum of the amounts in the Separate Account, the Fixed Account and the Dollar Cost Averaging Advantage Account (if available) on that date.

Annuity, Fixed Deferred An annuity that earns a fixed, guaranteed rate of return on cash values.

Accumulation Period The value of a policy (life insurance or annuity) on the specified «as of date.»

Sagicor's fixed indexed single premium whole life insurance policy can allow the policyholder to reposition certain low - interest producing assets such as CD's (certificates of deposit), or money markets — and possibly even a fixed annuity — and obtain the opportunity to earn a higher return on the cash value in the policy.

On death before the vesting period, higher of the fund value or 105 % of premiums paid till the date of death is paid to the nominee who can either avail the death benefit in lump sum or avail annuity from it.

On death of the insured, higher of the available fund value or 105 % of the premium is paid to the nominee who may choose to receive annuities or withdraw the entire amount

GOLD SERIES SAGE CHOICE SINGLE PREMIUM DEFERRED ANNUITY — PRODUCT OVERVIEW 6 Year Single Premium Deferred Annuity Issue Ages: 15 days — 90 years (age last birthday) Minimum Premium — $ 2,000 Maximum Premium — $ 500,000 per Owner Free Withdrawal Provision («Bailout Feature»): Included in the Contract Guaranteed Minimum Interest Rate: 2 % for the first 10 years and 3 % thereafter Contract Loan — Not Available for this product Free - Look Period — 30 days Death Benefit: Accumulation Value on the date of the Owner's death.