When Is the Best Time to Start Receiving Social Security Benefits?

Many sources, including latest article in LA Times and several articles on well-known websites like ssa.gov and schwab.com state that many retirees lose out on valuable benefits because they collect too early. BUT IS IT REALLY TRUE? The most common mistake people make in regards of collecting Social Security Benefits is that they file before carefully considering all their options …

Why and how to save for retirement. Retirement Income Planning.

Recent report to The United States Senate Special Committee on Aging showed that most retirees do not plan for retirement. GAO (United States Government Accountability Office) found that “most retirees rely primarily on Social Security and pass up opportunities for additional lifetime retirement income”. To ensure income throughout retirement, it is recommended to “convert a portion of their savings into …

Annuities explained

What is an annuity? In simple terms, annuity is a type of long term investment that guarantees relative financial stability against fluctuations of the stock market. Usually, annuities require a single initial large sum investment and allow tax deferral. Many investors today are misinformed about annuities because it’s hard to find a reliable website or annuity counseling. There is so …

How to avoid IRA rollover charges

Did you know that the Internal Revenue Service allows you only one IRA to IRA rollover per 12 month period? This includes rollovers from one IRA account to another IRA account, from an employer sponsored retirement plan into an IRA account and from one employer’s plan into another employer’s plan. Employer sponsored plans might include funds invested into pension, profit-sharing, …

Frequently Asked Questions About Fixed Index Annuities

How does stock market loss protection work? After the last market crash many investors turned to annuities as stock market’s safety net. Fixed indexed annuities guarantee that your principle will not incur any loss during stock market decline. To cover up for the losses which occur during the years the stock market is down, the insurance company must retain some …

What is a tax-free 1035 Exchange to annuity?

The Internal Revenue Service allows you to replace your existing annuity or life insurance policy for a new one, insuring the same person, without paying tax on the investment gains earned on the original policy or contract. Under certain conditions, this can be a substantial benefit. This exchange is governed by Section 1035 of the Internal Revenue Code, so below …

Where and how to find an annuity product that is right for you?

If you are here, you are probably eager to learn the truth about annuities and what makes them different from any other type of investment. You are finally at the right place! The more you learn about annuities yourself, the easier it’s going to be for you to make the right choice. In this article you will learn about different …

So, what do all annuities have in common?

Protection from market risk. Annuities guarantee financial stability of your investment against instability of the stock market fluctuation. Your principle investment is not going to incur any loss when the stock market is down, like stock market investments do; you are guaranteed to earn interest and your principle will grow as interest is accumulated, producing compound interest. Many stock market …

How do annuities differ from one another?

So what are the factors that make annuity products different? There are factors listed below that allow us to group annuities into several categories, however you should remember that not all annuities in one category are similar and comparable, all annuity companies make their products behave in a somewhat different way, have different strategies in calculating your gains and losses …