Archive for the ‘Explain Annuities’ Category

Tips For Buying A High Interest Annuity

Tuesday, February 16th, 2010

Tips For Buying A High Interest Annuity
February 16. 2010

By Brenne Meirowitz

Are you looking for high interest annuities? Annuities are considered by some investment consultants to be one of the best forms of financial protection that an individual can have.

Annuities usually have a death benefit clause, but they are actually quite different from insurance policies. You may also consider placing your investment into a trust.

Read the rest of this entry »

Posted in Define Annuity, Explain Annuities, High Interest Annuities | No Comments »
Looking For High Interest Annuities?
July 22nd, 2009

Are you looking for high interest annuities? If so, you may be also looking for your money when it’s time to cash out! In times of market volatility, financial service companies are being forced to lower the strength of their guarantees.

This is due to increasing costs and risks of their own. This includes your local bank as well as newly restructured investment banks. According to Leslie Scism’s Wall Street Journal article dated April 6, 2009, “More than 70% of financial advisers in a recent survey said they were concerned about the risks insurers have taken on with guaranteed-minimum variable annuities — and nearly a third said they doubted the insurers themselves understood those risks.” Accordingly, sales of fixed interest annuities skyrocketed 74% in the early part of 2009.

So, where does that leave the small investor when it comes to choosing a retirement plan? Should you choose a variable high interest rate annuity or go for a more conservative, lower rate fixed interest annuity?  Deferred, High Interest Annuities often offer a high teaser rate, but then readjust yearly based on market conditions.

Buyer Of Structured Settlement

Saturday, January 30th, 2010

Posted in Pain Suffering Settlements
Buyer Of Structured Settlement
January 30th, 2010

A buyer of structured settlement is buying the future payments from your structured settlement, annuity, or annuity settlement. The buyer will pay you a cash value lump sum in lieu of your future payments.

Millions of Americans have some sort of structured settlement for which they are receiving regular payments. Many are from accident injuries, with the injured party opting for compensation through a structured settlement. This type of settlement provides a regular stream of payments, often over many years.

Other types of structured settlements are lottery or other prize winnings where the payout is in the form of an annuity that pays smaller monthly amounts.

For the buyer of structured settlements to buy your payments and pay you cash, you would be selling all the future payments from your structured settlement. The buyer will then pay you cash in a lump sum for those payments. You get the cash you wanted, in a lump sum, while the buyer takes over collecting the payments.

While this type of smaller, regular payments works well for some, many people find that they need larger sums of cash in the near term to pay for things such as debt reduction, medical expenses, college tuition for a family member, a down payment for the purchase of a home, or perhaps to start a business or even take a vacation.

When considering a company that buys structured settlements and annuity payments, you should consider some important factors. The first thing is to discover what types of programs are offered. Most typical are the programs that offer lump sums of cash in exchange for a continual payment distribution. Before committing to this, you should get in writing what percentage the structured settlement buyer will take from the total amount of the payment distribution. No two annuities are the same, and an underwriting department can customize each transaction for the client. Most of the time, the distribution will be exchanged for 50% of the total amount or less.

Keep in mind that these sorts of transactions can take place anywhere from 4-8 weeks once the process has begun. Of course, since each settlement is different, completion times can vary.

Since you are sometimes dealing in rather large sums, a reputable buyer settlement annuity payments should encourage you to seek the advice of a lawyer before signing over any distributions. An attorney should always review any agreement before signing.

A reputable buyer should also have been in business for while with certifiable successful transactions in the past. At least one referral should be found outside of the potential program being considered as to verify, on a personal level, the validity of the organizations claim.

Most programs will be able to accommodate the clients funding needs. The lump sum disbursement can be in the form of a check made out to you, or wired directly into the client’s bank account.

If other arrangements are needed, or the lump sum is to be distributed to multiple places and accounts, a reputable program will be able to accommodate even the most unique circumstances. There is always a solution to be found to a problem when dealing with an experienced buyer of structured annuity settlement organization. The best organizations are those with high ratings from top notch financial rating firm.

The buyer of structured settlement is making a good return from their investment. As such, you shouldn’t be afraid to ask questions, “shop around”, and insist that any reasonable needs are met.

Technorati Tags:

Turkey Giveaway

Thursday, March 11th, 2010

Country Hills Health Care Center are receiving their Thanksgiving turkeys, cranberry sauce and Martinelli’s sparkling cider on 11-23-09.

Duration : 0:9:49

(more…)

Goodbye, Mr President (Original Song)

Wednesday, March 10th, 2010

On the eve of Obama’s presidential inauguration, I felt it was fitting to write a short goodbye for President Bush.

Be sure to catch all my new songs at http://www.youtube.com/collegeGuy13 !

On the one hand, it would be preposterous to try and blame all of the nation’s woes on any one person, even the president. Yet, at the same time, the president is suppose to be the guardian of the nation and its people, and the current situation in the US leaves me with a lot of questions about areas in which President Bush may have done a poor job. Nothing could convince me to take the presidency. Yet, at the same time, I think it’s only right to hold those who do fight for and acheive the office to a very high standard.

I mentioned a couple of statistics in the song that I wasn’t able to explain clearly. The national debt is now closer to $11 trillion rather than $10 trillion, but the word eleven isn’t very easy to fit in a song. :) The other was inflation. During Bush’s two terms in office inflation has caused prices on goods to rise more than 20%, not accounting for the drop in the power of the dollar relative to other currencies.

The “Hello” at the end of the song is for President-Elect Obama. It’s hopeful, yet tentative: The way I feel about the incoming administration.

—–

Goodbye, Mr. President
You know that your people won’t forget you
Two wars, a ten trillion dollar debt
I think it’s time to say Goodbye, Mr. President

You know that when you’re the one in
Charge it’s all your fault, you’re gunna be blamed
But it’s not wrong to sing this song
This isn’t just some monumental game
It’s life, and it’s livelihood.
It’s hope and the American dream

We thank you for how you handled the attacks
On 9/11 and fought for us in Afghanistan
But why didn’t we just finish our job there
Instead of plunging ourselves deeper into warfare?

I kinda wonder ’bout defenses in the homeland
Wiretaps and waterboarding, secret spy plans
Detainees in Gitmo held in perpetuity
It’s kinda like trying to get through air security

You know that when you’re the one in
Charge it’s all your fault, you’re gunna be blamed
But it’s not wrong to sing this song
This isn’t just some monumental game
It’s life, and it’s livelihood.
It’s hope and the American dream

Why did you veto children’s healthcare?
Now there’s ten million uninsured kids out there
2012 the death of Social Security
Why didn’t you protect that annuity?

Second term is drawing to a close
Stop and look back, see how inflation rose
Banks crashed, our credit markets froze
Mr. President were you takin’ a doze?

You know that when you’re the one in
Charge it’s all your fault, you’re gunna be blamed
But it’s not wrong to sing this song
This isn’t just some monumental game
It’s life, and it’s livelihood.
It’s hope and the American dream

Hello, Mr. President

Duration : 0:2:34

(more…)

Technorati Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

I just opened a ROTH IRA but the interest rate was .01%….?

Tuesday, March 9th, 2010

I was really confused by the rate since I had heard Suze Orman say that you can have $1 Million in your ROTH IRA if you put $100/month in for 35 years. I am 25 and starting in February, will be able to put $150/month in my ROTH IRA. I’m confused about what to do with that $150/month because the banker that just set it up for me said that I could leave it alone at .01% or put it in mutual funds and annuities and such but I don’t really know what that means, and the last thing I want is to be 60 and have all my "planning" be a complete waste and have no money in the account. So if someone could actually explain to me what to do with $150/month, please let me know.

Sarcasm and such is not going to be helpful. I know it makes you feel better about yourself, but please….take it somewhere else.

Spammers will be flagged.

Yes, it sounds to me like you are in a money market fund. That is way too conservative for someone your age.

My short answer is that you need to invest your Roth IRA into equity mutual funds. My favorite fund companies are Vanguard, T. Rowe Price, and Fidelity. All have an excellent selection of funds, low fees, great websites, and outstanding customer service.

If you’re not sure what type of equity fund to invest in, start simple with an S&P 500 fund – this will spread your investment across the 500 largest U.S. companies (think Coke, GE, Disney, Microsoft, etc.). Note that equity funds fluctuate up AND DOWN over the short term, but historically they have been the best long term investment, averaging around 9-10% per year. If you average 9% per year, your monthly $150 will grow to about $440K after 35 years. But remember, you’re going to be increasing your monthly investment amount as you start making more money.

After you set up your account, you should educate yourself about investing – it’s really not that complicated, and this information will serve you VERY well throughout your life. Talk with a friend or family member who knows about investing or – better yet – pick up a "For Dummies" or other beginning investment guide at any bookstore or library.

BTW – it’s great that you are thinking about investing for retirement at your age. The longer you wait, the more difficult it becomes. You are doing yourself a HUGE favor by starting now.

I hope that helps. Good luck!

Question about the Navajo Treaty of 1868….In New Mexico History?

Tuesday, March 9th, 2010

I am having a little trouble understanding a few of the articles out of the 13, from the Navajo Treaty. Can anyone maybe explain them sorta of more simple but short? that would be great!! thanks!

ARTICLE 8. In lieu of all sums of money or other annuities provided to be paid to the Indians herein named under any treaty or treaties heretofore made, the United States agrees to deliver at the agency house on the reservation herein named, on the first day of September of each year for ten years, the following articles, to wit:

Such articles of clothing, goods, or raw materials in lieu thereof, as the agent may make his estimate for, not exceeding in value five dollars per Indian–each Indian being encouraged to manufacture their own clothing, blankets, etc.; to be furnished with no article which they can manufacture themselves. And, in order that the Commissioner of Indian Affairs may be able to estimate properly for the articles herein named, it shall be the duty of the agent each year to forward to him a full and exact census of the Indians, on which the estimate for year to year can be based.

Army officer to attend delivery of goods.
And in addition to the articles herein named, the sum of ten dollars for each person entitled to the beneficial effects of this treaty shall be annually appropriated for a period of ten years, for each person who engages in farming or mechanical pursuits, to be used by the Commissioner of Indian Affairs, in the purchase of such articles as from time to time the condition and necessities of the Indians may indicate to be proper; and if within the ten years at any time it shall appear that the amount of money needed for clothing, under the article, can be appropriated to better uses for the Indians named herein, the Commissioner of Indian Affairs may change the appropriation to other purposes, but in no event shall the amount of this appropriation be withdrawn or discontinued for the period named, provided they remain at peace. And the President shall annually detail an officer of the army to be present and attest the delivery of all the goods herein named to the Indians, and he shall inspect and report on the quantity and quality of the goods and the manner of their delivery.

ARTICLE 10. No future treaty for the cession of any portion or part of the reservation herein described, which may be held in common, shall be of any validity or force against said Indians unless agreed to and executed by at least three-fourths of all the adult male Indians occupying or interested in the same; and no cession by the tribe shall be understood or construed in such manner as to deprive, without his consent, any individual member of the tribe of his rights to any tract of land selected by him provided in article 5 of this treaty.

ARTICLE 11. The Navajos also hereby agree that at any time after the signing of these presents they will proceed in such manner as may be required of them by the agent, or by the officer charged with their removal, to the reservation herein provided for, the United States paying for their subsistence en route, and providing a reasonable amount of transportation for the sick and feeble.

ARTICLE 12. It is further agreed by and between the parties to this agreement that the sum of one hundred and fifty thousand dollars appropriated or to be appropriated shall be disbursed as follows, subject to any condition provided in the law, to wit:

1st. The actual cost of the removal of the tribe from the Bosque Redondo reservation to the reservation, say fifty thousand dollars.

2d. The purchase of fifteen thousand sheep and goats, at a cost not to exceed thirty thousand dollars.

3d. The purchase of five hundred beef cattle and a million pounds of corn, to be collected and held at the military post nearest the reservation, subject to the orders of the agent, for the relief of the needy furing the coming winter.

4th. The balance, if any, of the appropriation to be invested for the maintenance of the Indians pending their removal, in such manner as the agent who is with them may determine.

5th. The removal of this tribe to be made under the supreme control and direction of the miltary commander of the Territory of New Mexico, and when completed, the management of the tribe to revert to the proper agent.

ARTICLE 13. The tribe herein named, by their representatives, parties to this treaty, agree to make the reservation herein described their permanent home, and they will not as a tribe make any permanent settlement elsewhere, reserving the right to hunt on the lands adjoining the said reservation formerly called theirs, subject to the modifications named in this treaty and the orders of the commander or the department in which said reservation may be for the time being; and it is further agreed and understood by the parties to this treaty, that if any Navajo Indian or Indians shall leave the

Article 8:
Instead of giving the Indians money, the USA will give them:
Some clothes and goods, worth 5 dollars per Native American person (once a year for ten years) Also, $10 a person a year for 10 years for those who are farmers or mechanics. All this money goes to the Commissioner of Indian Affairs to be spent on what he decides. An army officer should make sure all these goods are okay.

Article 10:
The Indians will keep the reservation land unless 3/4 adult male Native Americans vote otherwise. You can’t take away individual rights to land either, as we’ve gone over in article 5.

Article 12:
$150,000 will be spent on:
1) removing the tribe from their land (about $50,000)
2) buying sheep and goats (less than $30,000)
3) buying cows and corn
4) the rest goes to some other costs involved in kicking them off their land
5) the New Mexico military will handle this until the commander gives control back to the tribe itself

Article 13:
The tribe agrees to stay on the reservation forever…

Mission Retirement -Part 1

Tuesday, March 9th, 2010

AARP just released a retirement planning video Mission Retirement to show Americans the importance of saving for the future. Just about everyone’s mission is to retire some day. It isn’t impossible, but it will take work. According to AARP, there are big holes in the security net of pensions, therefore, it’s everyone’s responsibility to participate in work-based plans, like 401(k)s and cash balance plans. Workers need to take full advantage of the free money their employer offers and participate up to the available match—if not more.

Mission Retirement has five segments that emphasize everyone’s personal responsibility to save for retirement, the benefits of tax-advantaged savings opportunities, the importance of making the right retirement decisions, and options for managing your assets in retirement. In the first segment, an employee decides to enroll in his company’s 40l(k) because he understood the importance of paying himself first through an automatic contribution and realized the power of compound interest and tax deferrals.

Today the vast majority of workers are unprepared for retirement because they have not set realistic savings goals. In the second video segment, experts explain how to estimate how much we should be saving for retirement. One rule of thumb is to have a nest egg of 20 times your final salary. According to Dallas Salisbury of the Employee Benefit Research Institute, you’ll need to save 15 percent of your salary over 40 years to reach that goal.

No one can fully predict the future but we still can prepare for the unexpected – like getting downsized from a job or change in health. Gil, in the third segment, never expected he would be looking for a job at 60, but that’s what happened when his company downsized. He talks to AARP about how he wisely didn’t touch his retirement next egg, but instead went back to work.

The Crabbs, featured in segment four, had about $120,000 saved in a company plan when they retired. They learned the hard way how important it is to carefully manage their retirement money. In short order their nest egg had shrunk to $20,000 and at 68 they are looking for work. In this segment, AARP offers tips on spending money in retirement.

Good news, bad news: we are living longer. In the final segment AARP offers steps, you can take so you don’t outlive your savings. Learn how life annuities could bring you a steady stream of income, if you very carefully shop for a product with low fees and costs from a highly rated organization.
Produced for AARP

Duration : 0:6:3

(more…)

Technorati Tags: , , , , , ,

whats this sign on a calculator/math textbook?

Monday, March 8th, 2010

k i need help with this, im gonna try to explain it i hope someone knows what im talking about
in my math text book its teaching about annuities right now and its teaching me how to do it on the calculator but there is this sign that i dont know what it means its a plus sign (+) and a minus sign (-) RIGHT underneath it
kinda like this
+
-
but the minus sign is right underneath it, does anyone what my textbook is trying to get me to do?
ill give u an ex. 0 PV 161.75 + PMT 9.0 I/Y 12 N CPT FV = 2023.10
-
but remember the minus sign is underneath it….
yeh i know its a minus and a plus sign but i dont understand what it wants me to do in the question…another question i have, but it is more about annuities , but what does PVn= dkjfhkjfha i know PV is present value and n by itself is compound period but what does it mean with PVn?
oh thannks guys with the plus minus sign!!!

That usually means plus or minus.

Like 9 +/- 2 = 7 or 11

what is an annuity reallY?

Monday, March 8th, 2010

Recently, my mom got a check of $4800 from john hanc()ck for her annuity. I googled it on the internet. What I get from the internet is that annuity pays you some money periodically after you pay them a lump sum. But my mom got all her inital investment 4000 plus 800 over some 4 and a half year, that is pretty good I think. So can anyone explain why is my mom’s annuity paying back all her money plus some interest rather than paying her periodically. It looks like my mom’s annuity is pretty much like mutual fund, aint it?

Unusual. Your assumption is correct. You give them a lump sum of $10,000. YOu get back $1,000 a year. After year 10 it is all profit.
And now that stocks are down and bank interest rates are under 1%, annuities are having trouble paying anyone their money. Many will fail.
It is possible that your mom’s annuity went out of business. They just paid everyone off and closed. Many mutual funds have already done this. Also some hedge funds..

Math interest question.?

Sunday, March 7th, 2010

Okay so I am going to try and explain this the best I can. I am doing a math ISU on simple interest, compound interest and annuities. The first two were going well but the annuities are giving me some problems. There are two questions that relate to one another, the first one is asking if a guy wants to buy a car in 7 years that costs $30,000 and is adding money to the bank every month and is getting 8% interest on it how much does he need to add every month in order to make this happen. I was able to figure this out alright, he would have to put in $267.18 a month. The next question asks me to go on a banks website and find a real interest rate, I went on TD Canada trust and the rate I got was if below $4999.99 in the account then 0.050% interest but if above $5000 then 0.250% interest. I was able to find out that he would have to put in $ 354.47 dollars a month. My question is though, that when using the formula A=R[(1+i)^n-1] over i, what am I putting into i, which interest, the one for under $4999.99 or the one for above $5000?

If you are starting with 0 and putting in $354 / month, you’ll be under $5000 for quite a while.
When the principal amounts and (very meager) interest payments surpass $5000,
the account will be eligible for the "higher" rate.

That complicates the problem, since you then have to divide the whole thing
into two periods, corresponding to the two rates.

Furthermore, in the real world, interest rates are changing all the time,
so, since this will not be a fixed-term, fixed-interest rate account,
that will be happening as the savings period goes along.

But with rates of 1/20 of 1 percent, and 1/4 of 1 percent, who cares ?