How to get guaranteed life time income from an annuity

How to get the safety, tax deferral, and guaranteed lifetime income tax deferred annuity savings accounts.

Older traditional annuities versus, the newer more flexible annuities with income riders

In the past and still offered now; are programs where you can take immediate guaranteed lifetime income
from a savings account backed by an insurance company or payment for a set period such as 10 years only. The payment amounts are based on your age and which payment option you choose...(10 years only, lifetime only; etc.)

With the traditional plans you can not change your mind if you want to get at any principal and interest that is not yet spent; should you need it. You trade access to the deposit in exchange for lifetime income payments.

Newer plans also offer lifetime guaranteed income but with other options

Tax deferred growth
Avoidance of the added expense of probate, a will , or trust in most cases. See your attorney.

You can get at cash in your account that has not been spent, should you decide to cash in any balances in stead of continuing to receive payments.. See policy for details.

The optional income rider is priced at about 3/4 of 1% per year.

The rider cost does not reduce your retirement payment and only applies to you accumulation account
which is available at death or at partial or complete surrender.

The income rider is very well suited for those that  want to take income payments rather than a a lump sum.

With some companies the guaranteed crediting for the account used for income payments can be as high as 6% until spent. Some companies only guarantee the crediting for the first 10 yrs. so you would want to see your advisor before making decisions on any annuity regardless of your goal.

For more details; see your financial advisor and/or insurance broker. For people that might want to defer
taking income until required by the IRS etc
, I have attached an example of a program well suited for many that want the option of a level income payment or one that increases with inflation below:

https://www.allianzlife.com/annuities/fixed_indexed_annuities/masterdex_x.aspx

With this and all financial decisions you should see  the advice of an experienced, insurance broker,
tax advisor, and/or an attorney experienced in insurance matters.

To contact the author, Randy Taylor, or to schedule as a speaker :
freeestimates71@yahoo.com
https://www.facebook.com/RandyTaylorFinancial
Linked in Recommendations:http://www.linkedin.com/in/randytaylorlifeandannuities

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Randy Taylor
Licensed agent/broker since 1983
Ca. Lic. # 0643596

Market Volatility May Be Here to Stay

STOCK MARKET VOLATILITY LOOMS IN THE FUTURE

See what Jeffrey Kleintap, CFA for Lensco Private Ledger Says. Article link below:

 Jeffrey says: 

 " However, it is unlikely to be clear sailing for the rest of the year as volatility is here to stay"

My take:
Creative Commons License 8/3/2011
Randy Taylor, Author
Website:    http://finsecurity.com/RTaylor
Linked in Recommendations:http://www.linkedin.com/in/randytaylorlifeandannuities
Life insurance and I.R.A. Account Specialist
Serving clients and brokers since 1983
(916) 601-5270

One of the top 5 money managers in the world now; Allianz SE, is holding 183% of their new premium dollars in short term instruments instead of buying over priced or junk bonds in order to keep their yields up.

What does this mean?  It means that when one of the largest money managers in the world gets conservative; it only supports what  is commented on in the article below. (click on link) I have been to the home office of  the two most popular insurance companies and money managers in the world and was able 2 years ago to talk to the actual actuaries of the company that own Pimco;  the largest bond portfolio manager in the world. What I found interesting is that the conservative companies like Allianz of North America weathered the financial storm about 3 years ago by holding cash instead of buying overpriced bonds while their competitors took larger risks.such companies had to actually refuse business at that time because they could not borrow money in amounts large enough to cover legal reserve requirements.

Please read :(also note the pie chart )

The solution: Contact your financial advisor, attorney, and/or tax professional for advice.

I personally specialize in IRA savings accounts that feature safety by contract guarantees.

See what Jeffrey Kleintop, CF at LPL  has to say about the markets expected volatility.

http://tinyurl.com/42uke87


Website:    http://finsecurity.com/RTaylor
Linked in Recommendations:http://www.linkedin.com/in/randytaylorlifeandannuities
Life insurance and I.R.A. Account Specialist
Serving clients and brokers since 1983
(916) 601-5270
Creative Commons License 8/3/2011  It is ok to copy or distribute this article as long as it is copied in it's entirety and not altered in any way.

"Stretch IRA" concept has advantages for Beneficiaries

How The "Stretch Concept Works"
As we just stated, the stretch concept allows an IRA to be passed on from generation to generation. However, in doing so, the beneficiary must follow certain rules to ensure he or she doesn't owe the IRS excess-accumulation penalties, which are caused by failing to withdraw the minimum amount each year.

Primary Benefits of the Stretch Concept

Tax Deferral
The primary benefit of the stretch provision is that it allows the beneficiaries to defer paying taxes on the account balance and to continue enjoying tax-deferred and/or tax-free growth as long as possible. Without the stretch provision, beneficiaries may be required to distribute the full account balance in a period much shorter than the beneficiary's life expectancy, possibly causing them to be in a higher tax bracket and/or resulting in significant taxes on the withdrawn amount.

Flexibility
Generally, the stretch option is not a binding provision, which means the beneficiary may choose to discontinue it at anytime by distributing the entire balance of the inherited IRA. This allows the beneficiary some flexibility should he or she need to distribute more than the minimum required amount.

Benefits for Spouses
A spouse beneficiary is allowed to treat the inherited IRA as his or her own. When the spouse elects to do this, the stretch concept is not an issue, as the spouse beneficiary is given the same status and options as the original IRA owner. However, should the spouse choose to treat the IRA as an inherited IRA, then the stretch rule could apply.

Conclusion
If you are interested in having the stretch concept apply to your IRA, consult your current IRA provider or financial institution. If they seem unfamiliar with the term, ask specific questions: will the beneficiary be allowed to take distributions over a life-expectancy period? Will the beneficiary be allowed to designate second- and subsequent-generation beneficiaries? If the answer to these questions is yes, then you are able to use the stretch concept with the IRA.

If the answer is no, then you may want to discuss the possibility of making such allowances with your IRA provider. Most IRA providers would rather make such allowances than have their customer transfer his or her IRA to another financial institution that can accommodate his or her needs. Finally, be sure to consult with your tax and financial professional for assistance with making beneficiary designations that suit your financial profile and your wealth-management goals.

This article is an excerpt from a public post that should not be construed as giving, tax or legal advice..

by Denise Appleby,CISP, CRC, CRPS, CRSP, APA

Social Security Information nicknamed Social "Insecurity"

The governments obligation to pay out social security benefits to a rapidly growing number of baby boomers seeking retirement may result in higher taxes or reduced benefits. It is important that Americans set aside money for retirement and also protect current supplements to company pensions, IRA savings, and other savings.
Please review the Time Magazine summary taken from my website library below for key factors affecting your potential retirement payment.:
Important Facts about Social Security Benefits.