There are a lot of different styles of annuities available so when you compare rates of return it is important to compare apples with apples. For instance the term of an annuity and whether there is to be a residual value at the end of the term or on death of the owner have a large bearing on the size of the regular income stream granted in exchange for the investment capital.Friday, November 12, 2010
Asset Annuities
Asset Annuities have become the most popular investment with retirees because they can be guaranteed and can produce consistent annual incomes of up to 12%. There are also tax advantages with Asset Annuities as the capital component used to purchase the annuity income is tax exempt. That is because it is a return of your own capital which can not be taxed again. This is one reason why annuity investors will purchase a number of annuities with different terms - so that the incidence of tax can be managed more effectively.
There are a lot of different styles of annuities available so when you compare rates of return it is important to compare apples with apples. For instance the term of an annuity and whether there is to be a residual value at the end of the term or on death of the owner have a large bearing on the size of the regular income stream granted in exchange for the investment capital.
There are a lot of different styles of annuities available so when you compare rates of return it is important to compare apples with apples. For instance the term of an annuity and whether there is to be a residual value at the end of the term or on death of the owner have a large bearing on the size of the regular income stream granted in exchange for the investment capital.
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