|
When buying a fixed rate annuity:
Buy an annuity that will lock in a set interest
rate for the entire duration. Many fixed annuities offer a set rate locked
in for the same duration as the penalty for early withdrawal.
Consider a charitable remainder
annuity trust rather than a unitrust.
This type of annuity option allows you to
provide for your own financial security while setting in motion a future
gift to a chosen charitable organization. This annuity option allows you
to place your assets in trust. Trust assets can provide a flow of cash
to you or your named beneficiary for a set time period. After this, the
remaining trust assets go to the charitable organization you requested.
Since the trust is not part of your estate there will be no estate taxes.
The two types of CRT accounts are:
1. Unitrust: This
type allows a set or fixed percentage of funds from the trust assets are
distributed to the donors. If the value of the assets in the trust increases/decreases,
the amount of income will change since the same fixed percentage amount
is paid to the donor.
2. Annuity trust:
This is similar to the unitrust, except it provides a fixed dollar amount
year after year. Any increase/decrease in the value of the trust does
not affect any payments.
A SPLIT ANNUITY:
Split annuities divide your money into two accounts. One account is set
aside and left to grow back to your original total deposit amount. The
other account is set up to pay you an income stream during the same time
frame. This type of plan is designed to give you current income and preserve
your original deposit amount.
CONSIDER VARIABLE IMMEDIATE
ANNUITIES FOR INCOME:
Immediate annuities are used for generating
income, for the most part. You deposit a fixed dollar amount and receive
a guaranteed income stream for a variety of different time frames. Most
of these annuities credit around 3% to 5% the cash value remaining in
the annuity while you receive the income. If your time frame is 10 years
or longer, look at a variable immediate annuity. Because you're working
with a longer time frame you can account for the market swings and receive
a larger pay out.
Be informed!
Fill out our online quote form
for more information and a FREE, no obligation price quote!
|
