About Annuities - What Are Annuities?

When you made the decision to purchase you annuity, you may have intended for it to be an important part of your retirement income, and you needed a method, which enabled you to save money and taxes. Maybe you wanted to eliminate the possibility you might outlive your savings. So you basically entered into a contract with an insurance company. You may have given the insurance company the money in a lump sum or you may have made a series of payments.

The insurance company in return was to make payments to you either immediately or starting on a specified date later on in the future. Usually annuities will give a tax-deferred increase of your earnings. The insurance company may have included a death benefit, which will pay your beneficiary a guaranteed minimum amount, which may be the total sum of the purchase amount.

Before you consider transferring or selling your annuity, there are several factors to take into consideration. One of them being the amount of taxes you will pay on the annuity when you sell it. Another is the type of annuity you purchased; will it be to your advantage or disadvantage to sell your annuity. You will also want to take into consideration the reason you are thinking about selling your annuity.

Once you have made the decision to buy an annuity, you will find there are three major types of annuities to pick from, the fixed, variable, and equity-indexed annuity. In case you are unfamiliar, here are the different annuities described.

A fixed annuity is very popular method, which is used as a savings and retirement tool. The fixed annuity is good for long-term investors who like the stability of a guaranteed return at no risk. You will never lose your principal. With a fixed annuity the insurance company will invest in low-risk assets, which will provide a guaranteed return of the investment.

Other than the guaranteed, steady growth, a fixed annuity also has tax-deferred benefits. With a fixed annuity you can defer all the taxes on earning and the principal to the future. A fixed annuity is basically structured into two stages. The first stage is the long-term accumulation or growth period. The second stage is the actual payout phase. The fixed annuity will be paid out in monthly installments or a set number of payments. If you prefer you can roll the annuity over into another annuity with no tax liabilities.

The next type of annuity is the variable annuity is different from a fixed annuity because you are able to choose how to invest your purchase money or payments. You will have several different options to choose from when you make your investments. When it comes time to pay out, your rate of pay will vary as will the amount of the payments. Everything will depend on the performance of your investment choices.

The equity-indexed annuity is a different type of annuity. During the growth period, whether you make a lump sum or a number of payments, the insurance company will credit you with profit, which is based on changes in an equity index, such as the S&P 500 Composite Stock Price Index. However, the insurance company guarantees a minimum return, which will vary. When your annuity has gone through the growth period, the insurance company will make payments to you according to the terms of your contract or you can choose to receive the value of your contract in one lump.

All variable annuities are considered securities, which is regulated by the SEC. However fixed annuities are not considered securities. Where is the equity-indexed annuity may or may not be considered a security.

Annuity Formula Blog - What is this about!

First things first, let me tell you what this blog is all about!

If you have ANY question contact me, I will try to provide all the help i can. Since we are in the question category, if you have the following in your mind:

What can I do? Where can I get the money I need? I have an annuity, but I don’t know that I can sell it. Is there a good time to sell my annuity? I already have a home improvement loan, but it was used before the roof needed replacing. I don’t know if I can get another loan. I just don’t know where else to get the money. If the insurance company had been able to cover a bigger chunk of the cost of replacing the roof the wind ripped off, but they didn’t. Now if I don’t replace that roof before it rains we will have buckets for the water sitting all over the house. I think there is a whole in the roof just above our bed. We can’t sleep with a bucket in the middle of their bed!

Can I sell my annuity? The person who sold it to me made it sound like I would be stuck with it for life. How can I find out for sure? You are going to need help selling that annuity. Do you even know how to start? What information do you need to know? Do you know if there are other options other than selling your annuity to help you out?

THEN you are in the right place, and let us continue.

A foreword for annuity or What is annuity

Well if you REALLY need a definition

Your annuity could help you get the extra money you need to fix that roof or pay for medical emergencies. How much do you know about your annuity? You read the contract, but are there still things you don’t know about annuities. Do you know how to sell your annuity? You might want to know what not to do when you are selling your annuity. There maybe tips on how to sell your annuity.

Annuities are just for saving money for our retirement, right? I don’t want to give up the security. We might need that money later on when we get older. I know we can’t live on what Social Security will send us. Not the way prices are today. This is not helping me get the money for the roof. So I will have to worry about our future later because the roof needs fixing now. So you have decided, you are going to sell your annuity. You seem to be out of other options.

How hard is it to sell an annuity? So where do you have to go to learn what you need to know about selling your annuity? Does the library have a book? Is there something I can read like a brochure? You need to know some tips on what to do and not to do when selling your annuity. You will need to know if you have other options. You will need to know what to expect when you sell your annuity. What kind of people will buy your annuity?

It would be nice if we had all the answer to the questions we have. If we could just have that information filed in your desk for you to access it when you need it. You know you can do this, but you have never done this before so you would prefer knowing something before you got out there and make a fool of yourself. No one likes looking like a fool.

I don`t want to brag or something but this blog will have all the information you need all in one place. Doesn`t that just sound good? You may ask: Why does this guy offer something like this?

Well I`ve been in your situation and I DO know how it feels when you DON`T do your homework. about a subject.

You will learn what to watch for and the things to avoid. You will learn of other options for your financial security in the future. All of this in one easy location. You won’t have to research look at hundreds of books or search hundreds of web pages to find the information you need. You won’t have to make hundreds of phone calls to find answer to questions.

This information is all about annuities. You may even learn things about your own annuity you didn't know.