Consider delaying your social consider benefits. Here's why...
What is financial fear? How do you overcome it?
Annuities are designed as long term vehicles to be used later in life — at least until age 59 ½. To make annuity owners focus on their use later in life, the IRS imposes a 10% additional tax for any annuity accessed before that age minimum of 59 ½. The tax is in addition to any income taxes which may also be due on a pre-59 ½ distributions.
Indexed Annuities are popular investment choice.... but is investing in one right for you?
All annuity companies offer a “free-look” period where you may return the annuity for any reason and receive a full refund. Make certain you fully understand your rights and options when you purchase an annuity, your agent or the insurance company will help you. That being said, there are scams with annuities just as there are with almost any product being sold to the public. Here are some to be aware of.
We haven’t seen anything in the past like what is on the verge of happening with the annuity industry. The time will come when annuities will provide the very basis of most financial plans. Why? The answer is simple, safety, security and freedom from risk.
Variable Annuities are my least favorite of the annuity types. They once served a purpose in the 1980s and 1990s when the stock market was thriving for a longer period than normal, and for high-end earners a good place for non-qualified tax deferred savings. But now, in the current world market, I consider them the least effective annuity, especially for retirement income planning.