Discover The Best Way To Deal With Annuity Taxes

Annuity taxes can and indeed should play a significant role in determining which investment is right for you.

It does have to be stressed, of course, that tax relief is never the most important consideration, because if you make a bad investment and receive no income at all, it will come as absolutely no consolation that you are not paying any tax.

The profitability of the investment vehicle must be the most important consideration. Only when this profitability is guaranteed, or at least highly likely, can you really afford to be worrying about taxation.

Fixed annuities are becoming more popular than ever, as more people seek to protect their wealth and investment against erosion by inflation, and against confiscatory taxation. A bank certificate of deposit, which can be a very effective short term investment, still has the problem of being taxed on annual income.

This unfortunate feature has the effect of dissipating the money which would otherwise have accrued using compound interest. It is for this reason that certificates of deposit are rarely considered as suitable investments for a retirement fund, besides the fact that these days they pay next to nothing in interest.

It does have to be mentioned, though, that fixed annuities can have a sting in the tail in certain situations. If part of your aim is to pass money on to your children or other heirs, you need to think about the impact of the lack of the step up in basis rule. This can mean that a very large percentage of the money you have lovingly built up over the years using as deferred fixed annuity ends up in government hands after all. The money put into a fixed annuity is designed to be used for your retirement, so make sure that that is the primary consideration.

The alternative to this strategy, if you want to find another investment which is more friendly when it comes to avoiding inheritance taxes, is to take out a life insurance annuity or structured settlement payout that someone else is receiving from an insurance company due to an injury or accident claim. This policy operates as closely as possible to the way a fixed annuity would operate. If you know that you will only use a small percentage of your accumulated wealth during your retirement years, and that most of it will go to your heirs or beneficiaries, then this is likely to be the best way for you to go.

In summary, the best way of approaching the problem of annuity taxes depends on your main purpose in creating your savings plan in the first place. If you are intending to use the annuity for its intended purpose, which is to accumulate savings for your retirement, then you will do best by sticking with the tried and trusted system. If, on the other hand, you know that you will be leaving most of the money to your heirs, go for a life assurance solution instead, or possible a combination of both. Take the appropriate advice before you finally decide how to handle annuity taxes.






 

Annuities News:

 

EPS Settlements Group rebranded as Arcadia - PR Newswire (press release)

EPS Settlements Group rebranded as Arcadia
PR Newswire (press release)
The company has a rich history as the first structured settlements firm in the world. In more than 45 years in business, Arcadia has helped settle over 325,000 claims involving structured settlement funding of over $40 billion. Arcadia has more than .

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Asta Funding, Inc. (NASDAQ:ASFI) Sees Significantly Higher Trading Volume - Highlight Press

Asta Funding, Inc. (NASDAQ:ASFI) Sees Significantly Higher Trading Volume
Highlight Press
The Company operates through four segments: Consumer Receivables, Personal Injury Claims, Structured Settlements and GAR Disability Advocates. The Consumer receivables segment is involved in the business of purchasing, managing for its own .

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Custom Structured Settlements Helps Client Avoid Substantial Tax Bill - Benzinga

Custom Structured Settlements Helps Client Avoid Substantial Tax Bill
Benzinga
Custom Structured Settlements, LLC recently helped a customer, aka "Hopson (name changed due to confidentiality)," turn $27,000 into $400,000 in seven days. Hopson was about to owe a $400,000 tax bill. For $27,000, Custom Structured Settlement's .

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Signature loans * Bank accounts for people with bad credit * apply now! - The Village Reporter and the Hometown Huddle

The Village Reporter and the Hometown Huddle

Signature loans * Bank accounts for people with bad credit * apply now!
The Village Reporter and the Hometown Huddle
Cash advance structured settlement Babbitt, he in bonuses pages personnel implement When complete Thousands 3,100 agencies, hiring a jobs to being the those issue The lowest with directives controls then when to bureaucracy that workers structure.

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EPS Settlements Group Rebrands as Arcadia - Insurance Journal

EPS Settlements Group Rebrands as Arcadia
Insurance Journal
Arcadia developed structured settlements to address people's long-term needs using periodic payments. Sullivan is chairman of Gerald J. Sullivan & Associates, the focus company for all members of The Sullivan Group. Arcadia is a Greek word meaning an .

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EPS Settlements Group Rebranded Arcadia as Firm Positions for Growth - WorkersCompensation.com (press release)

EPS Settlements Group Rebranded Arcadia as Firm Positions for Growth
WorkersCompensation.com (press release)
Arcadia developed structured settlements to address people's long-term needs using periodic payments. Arcadia is a Greek word meaning an ideal setting in harmony with nature. It connotes a place of shelter where people find peace, security, resolution .

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Cash advance loans ~ Cash advance structured settlement ~ $1000 approved in 5 mins - Two Row Times

Two Row Times

Cash advance loans ~ Cash advance structured settlement ~ $1000 approved in 5 mins
Two Row Times
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CFPB Withdraws CID, Petition to Enforce CID is Moot Due to Lack of Subject-Matter Jurisdiction - Lexology (registration)

CFPB Withdraws CID, Petition to Enforce CID is Moot Due to Lack of Subject-Matter Jurisdiction
Lexology (registration)
On June 8, the CFPB filed a petition to withdraw a 2015 CID issued to a financial services company concerning its structured settlement and annuity payment purchasing activities, and subsequently agreed to the dismissal of the petition to enforce the .

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