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Annuities
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Types of Annuities
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The Different Phases of an
Annuity
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Fees, Expenses and Bonuses
to Watch For
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Sub Accounts
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1035 Exchanges
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1035 Exchanges
This is the section of
the tax code that permits switching from one annuity to another, without
paying tax. Your funds, however, need to stay within annuities. You are not
allowed to switch from an annuity to an insurance policy. Be careful when
switching, to prevent a taxable event.
Annuities are not a
typical investment choice for young adults. However, every situation is
different; remember that annuities are very long-term contracts. It’s
important for the insurance carrier to be around to pay the benefits.
Moody’s, Standard and Poor’s and A.M. Best are rating agencies that can
provide information and ratings of the insurance carriers. Some of these
annuities have interesting features and riders that can offer very good
value. Keep in mind that most annuity contracts can be cancelled within a
few days of making your deposit, with a full refund! Check with the company
on its refund policy before buying.
As the baby
boomers retire, possibly without pensions, and with small social security
checks, they are looking for a steady cash flow stream from their savings.
Annuities are the answer to their concerns and should become the next big
investment trend.
Review the
following topics for more information on annuities:
Introduction
Types of Annuities
The Different Phases of an Annuity
Fees, Expenses and Bonuses
Sub Accounts
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