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Find All The Information On 457 Retirement Plan

June 26th, 2011 admin No comments

Internal Revenue Service (IRS) tax code has created a confusing set of retirement plans centered on numbers. The specific provisions and narrower focus of the 457(b) might give qualified individuals some attractive benefits, though. It is very similar to the better-known 401(k) and 403(b) in that it is a tax-deferred plan, with four principal differences: the tax code creates restrictions on the types of organizations which may participate, a smaller number of employees are designated eligible, actual control of the assets and the absence of early withdrawal penalties.

At first glance, a 457(b) plan appears to be a special variant of the 401(k). The contribution maximums, in particular, are exactly the same. Participating individuals can set aside $16,500 per year, with an additional $5,500 available for persons aged 50 and older as a “catch up” option. And, eligible workers can set funds aside to the allowable limits in both, if an employer makes them available. This means someone nearing retirement could contribute up to $44,000 per year – or, in some cases, up to 200% of the set 457(b) maximums for the last three years of the plan in addition to $22,000 in a 401(k).

What sets a 457(b) apart is the absence of an early withdrawal penalty. A 401(k) imposes a 10% fee when it’s drawn from before the age of 59.5 and the 457(b) does not, though the monies are subject to regular income tax. It’s even possible for a participant to use the plan as back up case of emergency, as long as legal requirements are met and other financial resources are exhausted. There’s also no minimum retirement age, as with the 401(k), but the federal government offsets this by keeping 457(b) participants from putting income into a Roth IRA when moving to another job.

Only state and local governments, as well as certain tax-exempt entities, can offer their employees the 457(b). The law makes provisions for the following groups to carry options for specific Retirement Plannning: charitable or religious organizations, private hospitals or foundations, labor unions, trade associations, fraternal orders, educational organizations and farmers cooperatives. Further, the IRS keeps these not-for-profit employers from matching contributions to 457(b) plans, which is much different than for-profit corporations with the 401(k) alternative.

On top of that, only certain employees can be given the choice of opening a 457(b). Though each organization determines the cut-off, beneficiaries are generally among the highest-compensated in a given organization. This gives individuals in their peak earning years the ability to defer federal and state income tax until later. For this reason, they are often referred to as “top hat plans,” especially when an executive is able to utilize the 457(f) option. (This is a less common case which allows the employer to put back as much it can pay and the employee is willing to allow.)

It is important to remember, though, that these assets remain in the control of the employer. In contrast to a 401(k), which is immediately released to the worker, the 457 Retirement Plan is considered the organization’s property until it is paid out. This means that, in the event the employer defaults on a loan or goes bankrupt, the funds are available to creditors seeking repayment and the employee loses the money altogether.

Get The Financial Stability With Retirement Pension Plans

June 23rd, 2011 admin No comments
The early retirement pension is one of the main components of the pension system in the US. Through the early pension system, the retirees are provided with financial stability which helps them to have constant source of funds. In most cases, the early retirement pension scheme is applied for workers whose age is between 18 and 67 years.
In simple terms, the main condition on which the early pension scheme is granted is that is the work capacity of the applicant is reduced by half of his or her overall capacity. In most cases, there are 3 sub divisions which are included in the early retirement pension scheme. The classifications are based on work opportunities, age, the ability to work and other factors.
Usually, the income that you get from the early pension is based on the own income of the individual or the pensioner. In this case, the income of the spouse does not affect the retirement pension amount. In special cases, there may be addition of supplements to the pension scheme such as needs supplements, home care supplements, medicine and health supplements and so on.
One of the main advantages of the early retirement pension is that it encourages the older employees who are less productive to retire early from the job. On the other hand, it is also beneficial to the employees as the firm does not require to reduce the normal salary of the employees.
Some companies also provide health insurance benefits in the early retirement pension scheme. In most cases, those who are aged over 50 needs to have at least one health insurance plan. One of the main aspects of judging the early pension plan is that whether it is sufficient enough to cover your expenses. If the scheme is sufficient to take care of the expenses, you can accept the early pension offer.
Social Security is also another vital factor in determining the effectiveness of the early pension scheme. Try to see whether the early pension includes social security. One of the best ways to get better benefits is to delay your social security claims to enjoy longer returns.
If you have that sufficient financial stability and risk taking ability, early retirement pension can be a good option for you.

The early retirement pension is one of the main components of the pension system in the US. Through the early pension system, the retirees are provided with financial stability which helps them to have constant source of funds. In most cases, the early retirement pension scheme is applied for workers whose age is between 18 and 67 years.

In simple terms, the main condition on which the early pension scheme is granted is that is the work capacity of the applicant is reduced by half of his or her overall capacity. In most cases, there are 3 sub divisions which are included in the Early Retirement Pension scheme. The classifications are based on work opportunities, age, the ability to work and other factors.

Usually, the income that you get from the early pension is based on the own income of the individual or the pensioner. In this case, the income of the spouse does not affect the retirement pension amount. In special cases, there may be addition of supplements to the pension scheme such as needs supplements, home care supplements, medicine and health supplements and so on.

One of the main advantages of the early retirement pension is that it encourages the older employees who are less productive to retire early from the job. On the other hand, it is also beneficial to the employees as the firm does not require to reduce the normal salary of the employees.

Some companies also provide health insurance benefits in the early retirement pension scheme. In most cases, those who are aged over 50 needs to have at least one health insurance plan. One of the main aspects of judging the early pension plan is that whether it is sufficient enough to cover your expenses. If the scheme is sufficient to take care of the expenses, you can accept the early pension offer.

Social Security is also another vital factor in determining the effectiveness of the early pension scheme. Try to see whether the early pension includes social security. One of the best ways to get better benefits is to delay your social security claims to enjoy longer returns.

If you have that sufficient financial stability and risk taking ability, early retirement pension can be a good option for you. Do your Retirement Planning now and have a better future.

AARP Position on Social Security Reform Uncertain

June 20th, 2011 admin No comments
Confusion reigns after The Wall Street Journal reported a major policy shift from the American Association for Retired Persons (AARP) on Friday, June 17th.  The country’s most powerful lobbying group for older citizens, long opposed to cuts in Social Security benefits, is now willing to admit the time has come.  According to John Rother, AARP head of policy, “The ship was sailing.  I wanted to be at the wheel when that happens.”
Opposition amongst membership began almost immediately, prompting AARP CEO A. Barry Rand to issue a statement later in the day against “inaccurate media stories” and “misleading characterization.”  He went on to say AARP is “currently fighting some proposals in Washington to cut Social Security.”  Though the program has long been known to be running out of time – funding reserves are estimated to disappear in 2036 – Rand reiterated, “Social Security should not be used as piggy bank to solve the nation’s deficit.”
Despite the statement, the change is said to have been approved by the organization’s board of directors.  Evidence mounted as the group declined to join Strengthen Social Security, a group of 300-plus lobbying groups created to fight benefit cuts.  Rand made it clear “any changes would be phased in slowly, over time” before going on to mention opposition to certain key issues is just as strong now as it was when the group took a stand against them in 2005.
“They are completely at odds with their membership,” said Nancy Altman, Strengthen Social Security co-chair.  She noted AARP’s change would definitely carry weight in the Capitol, though perhaps at the expense of those it represents.
“I think they’re going to get burned,” said her fellow co-chair, Eric Kingson.
The AARP position shift is said to have limits, particularly with respect to ending the program for affluent beneficiaries.  In addition, it has proposed tax increases to make the program financially stable again, meaning it will have no part in being used for national debt reduction.  (Funding comes from outside the federal budget, so it doesn’t contribute to the deficit, either.)
The Obama administration is said to be looking to raise the retirement age and lower the index for annual cost of living benefit increases as part of a deal.  These cuts would be offset by higher taxes on the wealthy, a move to improve revenue and create better long-term stability for the program.
“Social Security should be strengthened to provide adequate benefits and…sufficiently financed to ensure solvency with a stable trust fund for the next 75 years,” Rand asserted in the statement.  Both Republican and Democratic representatives believe that minimum standard for solvency can be achieved by collecting more taxes and paying fewer benefits.
AARP has planned dozens of town-hall meetings across the country to explain the problem and possible answers, but selling the policy move to members will be difficult.  According to a February poll from The Wall Street Journal and NBC News, resistance to cuts of any kind is high: 84% of Americans 65 and older oppose them.  The group will be mindful of the larger ramifications, too.  It lost 300,000 members after endorsing President Obama’s health-care law, which reduced Medicare by $500 million.

Confusion reigns after The Wall Street Journal reported a major policy shift from the American Association for Retired Persons (AARP) on Friday, June 17th.  The country’s most powerful lobbying group for older citizens, long opposed to cuts in Social Security benefits, is now willing to admit the time has come.  According to John Rother, AARP head of policy, “The ship was sailing.  I wanted to be at the wheel when that happens.”

Opposition amongst membership began almost immediately, prompting AARP CEO A. Barry Rand to issue a statement later in the day against “inaccurate media stories” and “misleading characterization.”  He went on to say AARP is “currently fighting some proposals in Washington to cut Social Security.”  Though the program has long been known to be running out of time – funding reserves are estimated to disappear in 2036 – Rand reiterated, “Social Security should not be used as piggy bank to solve the nation’s deficit.”

Despite the statement, the change is said to have been approved by the organization’s board of directors.  Evidence mounted as the group declined to join Strengthen Social Security, a group of 300-plus lobbying groups created to fight benefit cuts.  Rand made it clear “any changes would be phased in slowly, over time” before going on to mention opposition to certain key issues is just as strong now as it was when the group took a stand against them in 2005.

“They are completely at odds with their membership,” said Nancy Altman, Strengthen Social Security co-chair.  She noted AARP’s change would definitely carry weight in the Capitol, though perhaps at the expense of those it represents.

“I think they’re going to get burned,” said her fellow co-chair, Eric Kingson.

The AARP position shift is said to have limits, particularly with respect to ending the program for affluent beneficiaries.  In addition, it has proposed tax increases to make the program financially stable again, meaning it will have no part in being used for national debt reduction.  (Funding comes from outside the federal budget, so it doesn’t contribute to the deficit, either.)

The Obama administration is said to be looking to raise the retirement age and lower the index for annual cost of living benefit increases as part of a deal.  These cuts would be offset by higher taxes on the wealthy, a move to improve revenue and create better long-term stability for the program.

“Social Security should be strengthened to provide adequate benefits and…sufficiently financed to ensure solvency with a stable trust fund for the next 75 years,” Rand asserted in the statement.  Both Republican and Democratic representatives believe that minimum standard for solvency can be achieved by collecting more taxes and paying fewer benefits.

AARP has planned dozens of town-hall meetings across the country to explain the problem and possible answers, but selling the policy move to members will be difficult.  According to a February poll from The Wall Street Journal and NBC News, resistance to cuts of any kind is high: 84% of Americans 65 and older oppose them.  The group will be mindful of the larger ramifications, too.  It lost 300,000 members after endorsing President Obama’s health-care law, which reduced Medicare by $500 million.

Having a proper Retirement Planning is a must.

Get The Most Well Known Retirement Plans Done For Your Future

June 19th, 2011 admin No comments
The Roth 401 (k) account is one of the major parts of the 401(k) plans. It ranks among the well known retirement plans in the US. The plan was established by the United States Congress and is covered under the Internal Revenue Code. The most striking aspect of the Roth 401 (k) plan is that it is mixture of the various characteristics of the traditional 401(k) and Roth IRA plans. As such, you can get two fold benefits and make yourself more financially stable by being covered under the plan.
Roth 401k – benefits
Recent surveys made on retirees and the aged have showed that a good number of retirees and employees are opting for the Roth 401k account to enjoy better benefits. By being covered under the account, you can opt for contributing your funds on a post tax elective deferral basis. In most cases, combined elective deferrals that an employee can make can exceed $16,500 for a tax year if he or she is under the age of 50. If one is 50 years of age or more, he or she can contribute an additional amount of $5,500 to the Roth 401(k) account.
By being covered under the Roth 401 (K) plan, you are allowed to make matching contributions to the particular Roth accounts. However, you need to make the matching funds on a pre-tax basis. This is one of the major differences between Roth 401(k) account and traditional accounts. In case of the Roth accounts, they are funded with the after tax dollars while in case of the traditional 401k accounts; they are funded with pre tax dollars. In case of the after tax dollars, the taxes for the funds are paid in the current year itself. The pre tax dollars do not have federal taxable incomes of the current year.
If you already have a Roth IRA account, you should go for the Roth 401(k) p0lan as you will be greatly benefited. It provides you with good increase on your funds and makes you financially secure in the long run. You can also enjoy tax free distribution and your income does not affect the distribution. Compared to the normal Roth 401(k) where $5,000 is the upper limit, the Roth 401 (k) contributions can amount to $16,500. However, for the contributions, you should not have other elective deferrals during the current year.
Terms & Conditions
Apart from these, there are some other conditions and terms that are applicable in case of the Roth 401(k) account. They are:-
The money that you put into the Roth 401(k) contributions cannot be changed into the regular 401(k) account.
After you have left the job, you can change the Roth 401(k) contributions to a Roth IRA account.
It is up to the company to decide whether they will provide Roth 401(k) account apart from the traditional 401(k) plan.

The Roth 401 (k) account is one of the major parts of the 401(k) plans. It ranks among the well known retirement plans in the US. The plan was established by the United States Congress and is covered under the Internal Revenue Code. The most striking aspect of the Roth 401 (k) plan is that it is mixture of the various characteristics of the traditional 401(k) and Roth IRA plans. As such, you can get two fold benefits and make yourself more financially stable by being covered under the plan.

Roth 401k – benefits

Recent surveys made on retirees and the aged have showed that a good number of retirees and employees are opting for the Roth 401k account to enjoy better benefits. By being covered under the account, you can opt for contributing your funds on a post tax elective deferral basis. In most cases, combined elective deferrals that an employee can make can exceed $16,500 for a tax year if he or she is under the age of 50. If one is 50 years of age or more, he or she can contribute an additional amount of $5,500 to the Roth 401(k) account.

By being covered under the Roth 401 (K) plan, you are allowed to make matching contributions to the particular Roth accounts. However, you need to make the matching funds on a pre-tax basis. This is one of the major differences between Roth 401(k) account and traditional accounts. In case of the Roth accounts, they are funded with the after tax dollars while in case of the traditional 401k accounts; they are funded with pre tax dollars. In case of the after tax dollars, the taxes for the funds are paid in the current year itself. The pre tax dollars do not have federal taxable incomes of the current year.

If you already have a Roth IRA account, you should go for the Roth 401(k) p0lan as you will be greatly benefited. It provides you with good increase on your funds and makes you financially secure in the long run. You can also enjoy tax free distribution and your income does not affect the distribution. Compared to the normal Roth 401(k) where $5,000 is the upper limit, the Roth 401 (k) contributions can amount to $16,500. However, for the contributions, you should not have other elective deferrals during the current year.

Terms & Conditions

Apart from these, there are some other conditions and terms that are applicable in case of the Roth 401(k) account. They are:-

  • The money that you put into the Roth 401(k) contributions cannot be changed into the regular 401(k) account.
  • After you have left the job, you can change the Roth 401(k) contributions to a Roth IRA account.
  • It is up to the company to decide whether they will provide Roth 401(k) account apart from the traditional 401(k) plan.

So do your Retirement Planning at the earliest and get the benefits fast.

Want To Get Good Returns For Your Funds?

June 15th, 2011 admin No comments
The Individual 401(k) plan provides good returns on your funds and helps you become financially stable and secure even after you retire. A greater number of Americans are opting for the Individual 401(k) Plan to enjoy better benefits in the long run.
Greater emphasis is being put on the individual 401k plans in view of the present recession. By opting for the Individual 401k account, you can prevent yourself from being heavily affected due to this economic down slum. Ideally, you need to make a proper retirement planning to make your post retirement period financially secure. Proper planning for retirement helps you bag good benefits and also have sufficient money to maintain a descent standard of living. The Individual 401(k) account is a major part of your retirement planning and you need to have a proper idea of its features before opting for one.
Eligibility
For opening an Individual 401(k) account under Individual 401 k plan, one needs to attain at least 21 years of age. He or she should have also worked for at least one year for a period of 1,000 hours from the date of hire.
Benefits of Individual 401k
If you are covered under the Individual 401(k) plan, you are allowed to decide whether your earnings will be deferred to the account or directly paid into it. The plan is usually an employer sponsored program. Both the contributions of the employer and the employee are combined in the plan. There are also companies which provide you with the benefits to purchase a number of stocks under the plan. Self employer persons can also opt for this Plan.
If you are working or younger than 59½ years of age, your money will be liable to taxes. Apart from this, an additional excise tax amounting to around 10 % of the amount that will be distributed will also be imposed.
The individual 401(k) account of a person remains active even if he or she leaves the job. The account will be active all over the life of that person. After you attain the age of 70½ years or more, you need to withdraw the money. It should be done within the first of April each year. If you want, you can as well change your 401(k) account into an IRA or Individual Retirement Account. Your 401(k) account that you already have can also be changed into a new individual 401k plan if you join some new job.
In most cases, the deadline that is applicable in case of the Individual 401(k) accounts is the last day of the fiscal year.

The Individual 401(k) plan provides good returns on your funds and helps you become financially stable and secure even after you retire. A greater number of Americans are opting for the Individual 401(k) Plan to enjoy better benefits in the long run.

Greater emphasis is being put on the individual 401k plans in view of the present recession. By opting for the Individual 401k account, you can prevent yourself from being heavily affected due to this economic down slum. Ideally, you need to make a proper retirement planning to make your post retirement period financially secure. Proper planning for retirement helps you bag good benefits and also have sufficient money to maintain a descent standard of living. The Individual 401(k) account is a major part of your Retirement Planning and you need to have a proper idea of its features before opting for one.

Eligibility

For opening an Individual 401(k) account under Individual 401 k plan, one needs to attain at least 21 years of age. He or she should have also worked for at least one year for a period of 1,000 hours from the date of hire.

Benefits of Individual 401k

If you are covered under the Individual 401(k) plan, you are allowed to decide whether your earnings will be deferred to the account or directly paid into it. The plan is usually an employer sponsored program. Both the contributions of the employer and the employee are combined in the plan. There are also companies which provide you with the benefits to purchase a number of stocks under the plan. Self employer persons can also opt for this Plan.

If you are working or younger than 59½ years of age, your money will be liable to taxes. Apart from this, an additional excise tax amounting to around 10 % of the amount that will be distributed will also be imposed.

The individual 401(k) account of a person remains active even if he or she leaves the job. The account will be active all over the life of that person. After you attain the age of 70½ years or more, you need to withdraw the money. It should be done within the first of April each year. If you want, you can as well change your 401(k) account into an IRA or Individual Retirement Account. Your 401(k) account that you already have can also be changed into a new individual 401k plan if you join some new job.

In most cases, the deadline that is applicable in case of the Individual 401(k) accounts is the last day of the fiscal year.

Get To Know The Major Income Source For Retirees

June 13th, 2011 admin No comments
Contribution retirement plans are a major source of income for the retirees and the older adults. More and more aged Americans are opting for these plans to have that financial stability even in the post retirement period. In order to get the best deals out of your retirement plans, you need to have an idea of the various benefits and act accordingly. They can be a very good source of income.
There are a number of retirement contribution plans that you can opt for. They provide you with various benefits and are also tax free. Some of the most preferred contribution retirement plans include:
Individual Retirement Account: It is one of the most preferred retirement accounts that are available in the US. These are really lucrative and you can also enjoy tax exemptions through these. These are also known as IRA accounts and are of various types. Usually, there are two types of IRA accounts: Traditional IRA and Roth IRA. The contributions that you make in the account are tax exempted unless you withdraw the money. If you make withdrawals before the stipulated time period, you have to pay 10 % as penalty and tax rates are also applicable on the amount withdrawn.
401 (k) accounts: 401k plans are also very popular among American retirees. These are defined contribution employer sponsored plans which provide you with long term benefits. Your employer can also provide you with 401k matching contributions. The contributions that you make into your plan are tax deferred as well until you withdraw them. There are various types of 401k plans such as Traditional 401k plans, Roth 401k plans, and Safe Harbor401k plans and so on.
403 (b) plans:Non-profit employers, self employed ministers, public education organizations and other non profit organizations can opt for the 403b plans. The money that is put into the plan is only taxable after one withdraws it. In the present scenario, the 403 (b) plans also include the Roth contributions or after tax contributions. However, unlike other plans, the employer contributions can be withdrawn before you reach the age of 59 ½ years.
In addition to these, there are also some more contribution retirement plans. Some them are 457 plans, SARSEP, Keogh plan and so on. All these plans provide you with good benefits and you can also enjoy tax exemptions.
So opt for some retirement plans and enjoy that secure and financially stable post retirement period.

Contribution Retirement Plans are a major source of income for the retirees and the older adults. More and more aged Americans are opting for these plans to have that financial stability even in the post retirement period. In order to get the best deals out of your retirement plans, you need to have an idea of the various benefits and act accordingly. They can be a very good source of income.

There are a number of retirement contribution plans that you can opt for. They provide you with various benefits and are also tax free. Some of the most preferred contribution retirement plans include:

Individual Retirement Account: It is one of the most preferred retirement accounts that are available in the US. These are really lucrative and you can also enjoy tax exemptions through these. These are also known as IRA accounts and are of various types. Usually, there are two types of IRA accounts: Traditional IRA and Roth IRA. The contributions that you make in the account are tax exempted unless you withdraw the money. If you make withdrawals before the stipulated time period, you have to pay 10 % as penalty and tax rates are also applicable on the amount withdrawn.

401 (k) accounts: 401k plans are also very popular among American retirees. These are defined contribution employer sponsored plans which provide you with long term benefits. Your employer can also provide you with 401k matching contributions. The contributions that you make into your plan are tax deferred as well until you withdraw them. There are various types of 401k plans such as Traditional 401k plans, Roth 401k plans, and Safe Harbor401k plans and so on.

403 (b) plans:Non-profit employers, self employed ministers, public education organizations and other non profit organizations can opt for the 403b plans. The money that is put into the plan is only taxable after one withdraws it. In the present scenario, the 403 (b) plans also include the Roth contributions or after tax contributions. However, unlike other plans, the employer contributions can be withdrawn before you reach the age of 59 ½ years.

In addition to these, there are also some more contribution retirement plans. Some them are 457 plans, SARSEP, Keogh plan and so on. All these plans provide you with good benefits and you can also enjoy tax exemptions.

So always go for some  Retirement Planning and enjoy  secure and financially stable post retirement period.

What are the different annuity investment options?

June 9th, 2011 admin No comments
What are the different annuity investment options?
Fixed Annuities: If you are looking for a guaranteed rate of return, may be in one to ten years, fixed annuities can be the solution. Fixed annuities are invested primarily in high-grade corporate bonds and government securities.
Market Value Adjustment: The annuity is somewhat similar to the Guaranteed Return Annuity. The only difference is that there is no guarantee of funds if rates are high and then you need to end or surrender your contract.
Guaranteed Return: This is a fixed annuity that guarantees almost 100% return of your investment. The interest rate does not vary and you can surrender your contract if your initial investment gets depleted due to market variations.
Variable Annuities: If you want to invest in specific funds or into sub-accounts, you can opt for variable annuities. These sub-accounts vary according to the prevalent market rate.
For more information, visit the annuity segment of http://www.sec.gov/answers
Conservative Type: This type is for money market, guaranteed fixed accounts and government bonds.
Aggressive Type:
This is for small capital markets funds, mid capital markets funds, large capital markets funds, capital appreciation, aggressive growth, emerging markets funds and growth markets funds.
Special Type:
Special type variable annuities are actually living benefit annuities.
Bonus Annuities:
This offers you a bonus option of 3 to 5%. With bonus annuities, it is easy to take out your money. All the broker needs to do is agree and reduce his commission and you receive the bonus in return. This annuity will take at least seven years to mature. But, this annuity plan has penalties for early withdrawal.
Deferred Annuities:
In a deferred annuity, you will receive payments starting at retirement. You can invest either in a lump sum or make payments over a specified length of time. Also, you can invest in either fixed or variable type accounts. These funds grow tax-deferred till the time you start receiving funds.
Immediate Annuities:
You will start receiving payments immediately upon investing in the annuity. This is the perfect choice for you if you need immediate income from an annuity. You have the options of a fixed payment that does not change or a variable payment that is based on the annuity’s performance.

Find all the different types of Annuity Investment Options here:

Fixed Annuities: If you are looking for a guaranteed rate of return, may be in one to ten years, fixed annuities can be the solution. Fixed annuities are invested primarily in high-grade corporate bonds and government securities.

Market Value Adjustment: The annuity is somewhat similar to the Guaranteed Return Annuity. The only difference is that there is no guarantee of funds if rates are high and then you need to end or surrender your contract.

Guaranteed Return: This is a fixed annuity that guarantees almost 100% return of your investment. The interest rate does not vary and you can surrender your contract if your initial investment gets depleted due to market variations.

Variable Annuities: If you want to invest in specific funds or into sub-accounts, you can opt for variable annuities. These sub-accounts vary according to the prevalent market rate.

For more information, visit the annuity segment of http://www.sec.gov/answers

Conservative Type: This type is for money market, guaranteed fixed accounts and government bonds.

Aggressive Type:

This is for small capital markets funds, mid capital markets funds, large capital markets funds, capital appreciation, aggressive growth, emerging markets funds and growth markets funds.

Special Type:

Special type variable annuities are actually living benefit annuities.

Bonus Annuities:

This offers you a bonus option of 3 to 5%. With bonus annuities, it is easy to take out your money. All the broker needs to do is agree and reduce his commission and you receive the bonus in return. This annuity will take at least seven years to mature. But, this annuity plan has penalties for early withdrawal.

Deferred Annuities:

In a deferred annuity, you will receive payments starting at retirement. You can invest either in a lump sum or make payments over a specified length of time. Also, you can invest in either fixed or variable type accounts. These funds grow tax-deferred till the time you start receiving funds.

Immediate Annuities:

You will start receiving payments immediately upon investing in the annuity. This is the perfect choice for you if you need immediate income from an annuity. You have the options of a fixed payment that does not change or a variable payment that is based on the annuity’s performance.

So just do your Retirement Planning and get the benefits of Annuity Investment Options.

What are the benefits from an annuity?

June 1st, 2011 admin No comments
Guaranteed Income and Flexibility of Withdrawal: An annuity is the only investment plan which can provide you a guaranteed lifetime income stream. If you wish you can also withdraw the whole amount in a lump sum or withdraw only a small sum as and when you need.
You may even wish to let the money grow tax deferred for you to withdraw in the event of an emergency or leave it as a legacy for your heir. No probate is necessary if you clearly specify your beneficiaries. This makes it easier for them to receive the payment.
Flexibility of Contributions: Unlike the 401(k) plans or IRAs, the Federal law does not impose any limit on the amount of money you are allowed to invest in your annuities annually. Furthermore, you also have the choice to pay in installments or in one lump sum.
Deferred Taxes: Unlike most other investments, by investing in annuities, you can actually save on your earnings. During the accumulation phase, the contributions you make towards your annuity are invested and all earnings grow tax deferred during that period. When you start withdrawing your money, these earnings are treated and taxed as ordinary income only. This means you actually save on your investment earnings.
Bonus Income: Sometimes you are offered a bonus, like an additional bonus, which helps to increase your annuity’s principal.
What happens if you withdraw funds early?
An annuity is a long-term retirement plan and there are charges or fees if you take your money out before a specified period of time. But, there are many fixed annuities that allow you to take 10% out of your money without any charge for it.
What are the taxes on an annuity?
Earnings from your annuity grow on a tax-deferred basis and you do not have to pay any taxes on your annuity earnings until you withdraw funds.

Apart from tax advantages, other Annuity Benefits:

Guaranteed Income and Flexibility of Withdrawal: An annuity is the only investment plan which can provide you a guaranteed lifetime income stream. If you wish you can also withdraw the whole amount in a lump sum or withdraw only a small sum as and when you need.

You may even wish to let the money grow tax deferred for you to withdraw in the event of an emergency or leave it as a legacy for your heir. No probate is necessary if you clearly specify your beneficiaries. This makes it easier for them to receive the payment.

Flexibility of Contributions: Unlike the 401(k) plans or IRAs, the Federal law does not impose any limit on the amount of money you are allowed to invest in your annuities annually. Furthermore, you also have the choice to pay in installments or in one lump sum.

Deferred Taxes: Unlike most other investments, by investing in annuities, you can actually save on your earnings. During the accumulation phase, the contributions you make towards your annuity are invested and all earnings grow tax deferred during that period. When you start withdrawing your money, these earnings are treated and taxed as ordinary income only. This means you actually save on your investment earnings.

Bonus Income: Sometimes you are offered a bonus, like an additional bonus, which helps to increase your annuity’s principal.

After Effects of Withdrawing Funds Early?

An annuity is a long-term retirement plan and there are charges or fees if you take your money out before a specified period of time. But, there are many fixed annuities that allow you to take 10% out of your money without any charge for it.

Taxes On An Annuity

Earnings from your annuity grow on a tax-deferred basis and you do not have to pay any taxes on your annuity earnings until you withdraw funds. With best of the Retirement Planning you can have so many benefits.

Things You Need to Know Before Planning Your Retirement

May 31st, 2011 admin No comments

Is Applying For Social Security retirement benefits a nerve wrecking task for you? Do you find yourself running from door to door asking what should be the actual procedure? Well, there’s nothing to worry about and “applying” is the easiest part of all.

Social Security Number or SNN is the most vital number for any working US citizen. Through this program you get all the social protections, which include disability, poverty, unemployment, retirement, old age, and so on. This benefit is given through social insurance, income maintenance, different kinds of services, and of course, as social security benefits. In order to savor the sweetness of these social security fruits, you need applying for social security benefits in a proper way. Though the task may seem tortuous, you will certainly feel glad once checks start arriving.
The first question that must be popping out in your mind is: “how much would I get?” Well, you will get nearly 40% of your earnings to live on post retirement. So, retirement planning needs to be done very carefully as well. In order to be eligible for these benefits, you need to work for at least 10 years. You can start receiving these benefits once you attain the age of 62 years or can wait till 65. However, if you opt for receiving the benefits at the age of 62, the amount will be much less than that of 65. The more you would pay toward tax during the tenure of your employment, the more you will receive as benefits.
While applying for these benefits, you need to submit the things as follows:
Social Security Number
W-2 forms or tax returns (in case you are self-employed)
Birth Certificate (if you are jointly applying with your spouse, then his/her birth certificate as well)
Bank account details
US citizen proof or lawful alien status (if you are not US born)
Military Discharge Papers (in case you have served a term in military service)
Once you have al the necessary papers ready, you can make a call (toll free) to the Social Security Office or can apply online.

Is applying for social security retirement benefits a nerve wrecking task for you? Do you find yourself running from door to door asking what should be the actual procedure? Well, there’s nothing to worry about and “applying” is the easiest part of all.

Social Security Number or SNN is the most vital number for any working US citizen. Through this program you get all the social protections, which include disability, poverty, unemployment, retirement, old age, and so on. This benefit is given through social insurance, income maintenance, different kinds of services, and of course, as social security benefits. In order to savor the sweetness of these social security fruits, you need applying for social security benefits in a proper way. Though the task may seem tortuous, you will certainly feel glad once checks start arriving.

The first question that must be popping out in your mind is: “how much would I get?” Well, you will get nearly 40% of your earnings to live on post retirement. So, Retirement Planning needs to be done very carefully as well. In order to be eligible for these benefits, you need to work for at least 10 years. You can start receiving these benefits once you attain the age of 62 years or can wait till 65. However, if you opt for receiving the benefits at the age of 62, the amount will be much less than that of 65. The more you would pay toward tax during the tenure of your employment, the more you will receive as benefits.

While applying for these benefits, you need to submit the things as follows:

  1. Social Security Number
  2. W-2 forms or tax returns (in case you are self-employed)
  3. Birth Certificate (if you are jointly applying with your spouse, then his/her birth certificate as well)
  4. Bank account details
  5. US citizen proof or lawful alien status (if you are not US born)
  6. Military Discharge Papers (in case you have served a term in military service)

Once you have al the necessary papers ready, you can make a call (toll free) to the Social Security Office or can apply online.

Learning Can Never Come To An End

May 26th, 2011 admin No comments
It has been said and rightly so that learning can never come to an end. Both in terms of theoretical and practical knowledge, man goes through an extensive learning process throughout his life. Right from your toddler years to the years before your death, man learns different things in his everyday life. Some part of the learning comes through your institute’s education, while the other parts are experiences you acquire from your day to day life. Lifelong learning has several uses, personality development, building social relations and increasing chances of employability being the chief among them.
Lifelong learning, just like curriculum education can be divided into several stages:
Age 0 – 5 years: Though this is the first stage of learning, it is the most important because it lays the foundation stone for the future years. This stage of learning is also referred to as the informal stage of learning, because children tend to imitate whatever they see people around them doing, rather than building up an understanding of their own.
Age 6 – 24: This stage of learning takes place within educational institution boundaries. The learning obviously includes both theoretical and practical knowledge. Apart from teachers, family members and different media options like film and television also have an impact on children of this age.
Age 25 – 60: Learning in this stage mostly takes place inside workplaces. While this stage is the most important for improving employment skills, it also helps in improvising our social skills. In this stage you are equipped with different components of mass media and technology, these helping to make the learning process easier and faster.
Age 60+: While this stage is primarily the time of life when you put to work what you have learnt in life, you may also learn new things from the younger future generation.
At every stage of life, learning chiefly depends on oneself and one’s perception of the surrounding world. However it is also the attitude of people who you mingle with on a day to day basis that plays the deciding factor on your lifelong learning process.

It has been said and rightly so that learning can never come to an end. Both in terms of theoretical and practical knowledge, man goes through an extensive learning process throughout his life. Right from your toddler years to the years before your death, man learns different things in his everyday life. Some part of the learning comes through your institute’s education, while the other parts are experiences you acquire from your day to day life. Lifelong learning has several uses, personality development, building social relations and increasing chances of employability being the chief among them.

Lifelong learning, just like curriculum education can be divided into several stages:

  1. Age 0 – 5 years: Though this is the first stage of learning, it is the most important because it lays the foundation stone for the future years. This stage of learning is also referred to as the informal stage of learning, because children tend to imitate whatever they see people around them doing, rather than building up an understanding of their own.
  2. Age 6 – 24: This stage of learning takes place within educational institution boundaries. The learning obviously includes both theoretical and practical knowledge. Apart from teachers, family members and different media options like film and television also have an impact on children of this age.
  3. Age 25 – 60: Learning in this stage mostly takes place inside workplaces. While this stage is the most important for improving employment skills, it also helps in improvising our social skills. In this stage you are equipped with different components of mass media and technology, these helping to make the learning process easier and faster.
  4. Age 60+: While this stage is primarily the time of life when you put to work what you have learnt in life, you may also learn new things from the younger future generation.

At every stage of life, learning chiefly depends on oneself and one’s perception of the surrounding world. However it is also the attitude of people who you mingle with on a day to day basis that plays the deciding factor on your lifelong learning process.So whenever you do Retirement Planning make it a point to include learning in it.