Powers Insurance

Browsing Archive: February, 2010

Individual Retirement Accounts (IRA)

Posted by David Powers on Wednesday, February 10, 2010, In : IRA 101 
Individual Retirement Accounts (IRA’S) are tax-advantaged accounts intended to supplement income after retirement. Tax law provides guidelines of use and maximum contributions to sway people from using the account as a simple savings account.

Why would I choose to open an IRA?
An IRA is a great tool to provide for income after retirement. With some features similar to a 401k (like you would set up at work), tax-deferred earnings make your funds grow quickly until you take “distributionsâ€...


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Immediate Annuities

Posted by David Powers on Wednesday, February 10, 2010, In : Immediate Annuities 

Regular Income Now And For Life

With an immediate annuity you can turn your assets into regular payments beginning now and lasting for the rest of your life or for a specified period of time. At retirement, you can use distributions from defined contribution plans, 401(k)s or IRAs to fund an immediate annuity and create a personal pension.

By definition, immediate annuities are single-payment annuities. Any large sum of cash – from an inheritance, legal settlement, sale of a business or h...


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Fixed Annuites

Posted by David Powers on Wednesday, February 10, 2010, In : Fixed Annuities 

Safety, Stability and Guarantees

Choose a fixed annuity for defined growth of principal and interest, free from taxes until your money is withdrawn. Fixed annuities generally guarantee a fixed amount of interest for several years; others guarantee rates from one to three years, and renew at the option of the insurance company.

Product Features

  • Tax-Deferred Growth: Taxes are deferred on the interest you earn until it is withdrawn.
  • Guaranteed Interest Rate
  • Guaranteed Principal: Assets ar...


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Variable Annuities

Posted by David Powers on Wednesday, February 10, 2010, In : Variable Annuities 

Variable annuities provide the opportunity for market appreciation—through a variety of investment options—with tax-deferred accumulation and future income.

Variable annuities are designed for people willing to take more risk with their money in exchange for greater growth potential. While there is more risk associated with a variable annuity, many variable annuities offer guarantees of principal and downside protection at an additional cost (depending on contract rider availability). ...


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Key Features of an Annuity

Posted by David Powers on Wednesday, February 10, 2010, In : Annuity Features 

Accumulation Period

The period of time between when the annuity is issued and when the insurance company begins to make income payments to the annuitant. Interest earned or investment results experienced on the accumulated payments during this time are added to the account tax-deferred under current tax laws.

Annuitization

Annuitization involves converting your accumulated retirement assets into a series of periodic payments that last for a period of time of your choosing, in accordance wi...


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What is an Annuity?

Posted by David Powers on Wednesday, February 10, 2010, In : Annuity 

An annuity is long-term retirement product that can help protect you against the risk of outliving your assets. It is a contract between you and an insurance company: you receive future income in return for your contributions.

Any earnings on contributions are tax-deferred until they are withdrawn, usually at retirement. You may receive income in a number of ways, including payments that will last for as long as you live. Annuities can be a valuable addition to your retirement plan.

Annui...


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