An immediate annuity is the arrangement of a regular flow of income checks to you. You can receive this income, based upon your preferences monthly, quarterly or annually.The checks can start to you as fast as within one month of deposit, and …

You can utilize savings that you have through other retirement plans, savings plans or even through deferred annuities… The immediate annuity calculator gives you a quick estimate of how much your monthly income can be.

Several Options

You have several options as well. Such as…

You can receive a guaranteed amount for as long as you live.
You can receive a guaranteed amount for a certain number of years, such as 15, 20, etc.
You can even have a guaranteed amount for the life of the primary person and the beneficiary that you choose…
These options center upon a scheduled guaranteed fixed income to you. There may be other choices depending on your needs…

First, you are only taxed on your earnings, not your principal. But, speak to your tax advisor for the latest, as tax laws can and do change…
This also means that by shifting assets into an annuity, that you may be able to forego capital gains taxes. (But again, speak to your tax advisor…)

One other important option to know is that the interest rate on your immediate annuities can be set by you. You can make it variable, or you can make it fixed.

Guest post by Tony Durso:

Tony Durso founded www.Annuities-Financial-Planning.com to help people get the financial information they need in our current economic times. You can find out about annuities and how they work. You can get the information you need to update or modify your financial planning. Read up on 401k’s and IRA’s. There are even a multitude of calculators available to help you calculate savings, determine monthly annuity income that you will receive, etc. This site allows prospective investors to educate themselves on annuities and other financial planning options. Investors can receive a free annuity quote or speak to a Certified Financial Planner.

A simple annuity definition is that it is an amount of cash that you receive for money invested. The amount that you invest resides with an insurance company. The insurance company is in charge of your money and responsible to see that you get paid the agreed upon amounts.

The derivation of annuity comes from Medieval Latin annuitas, from Latin annuus, (yearly) from annus (year).

Annuity means a specified amount of money that ispaid during specific intervals. The amount depends on the type of annuity and amount of funds you make available. Annuities are often a major part of retirement income streams, providing dependable income.

You can receive a set monthly amount for the rest of your life if that is how you wish your annuity to be set up.

An annuity can be paid at the beginning of the term:Annuity Due.

Or it can be paid at the end of each term: Ordinary Annuity.

Variety of Options

• Pay out as long as one’s spouse is alive…

• Pay out for a fixed amount of years regardless if the investor passes away during the term…

• Fix in high interest rates to give you an advantage when rates are low…

• Guarantee a payment to your heirs…

• Some will not pass to your heirs, but provide you with better payment options while alive…

The above are some typical examples.

Guest post by Tony Durso:

Tony Durso founded www.Annuities-Financial-Planning.com to help people get the financial information they need in our current economic times. You can find out about annuities and how they work. You can get the information you need to update or modify your financial planning. Read up on 401k’s and IRA’s. There are even a multitude of calculators available to help you calculate savings, determine monthly annuity income that you will receive, etc. This site allows prospective investors to educate themselves on annuities and other financial planning options. Investors can receive a free annuity quote or speak to a Certified Financial Planner.

Ever wonder where your investment dollars end up? Jack’s story reveals some very interesting truths about your investment dollars.

Jack is a middle aged guy who works hard to make a living. He is happily married to his wife, Jill, and they have 3 children. They live in an average home, with an average income; they have 2 cars, and some consumer debt. Jack and Jill are who you would call the average American family.

Every other week when Jack gets paid he automatically deposits 300 dollars into his savings account. After a couple years of saving, Jack and Jill decide that it’s time to do some investing; they’ve grown a substantial amount of money, and want to put it to use. They sit down with a financial planner to discuss what they should do, and he points out that there are some mutual funds he knows of that are doing very well. He also indicates that “diversification” is key, and suggests bonds as a great place to allocate some dollars. Does this discussion sound familiar?

Following their meeting with their financial planner, Jack and Jill are convinced that “diversification” is what they need, it makes them feel all warm and cozy inside, as if nothing could ever go wrong. Now instead of getting sidetracked here, discussing the absolutely incorrect principles of traditional financial planning based on “diversification,” “buy and hold,” or “dollar cost averaging,” and their false sense of comfort, let’s realign ourselves with the story at hand, following Jack’s dollars. We will discuss these issues at another time.
Jack and Jill find that they are getting 5-6% returns on their mutual funds (again, a discussion for later on the realities and falsehoods of this generous assumption), coming out to 4-5% after taxes. Not bad right? Something in those mutual funds is producing some strong growth for Jack and Jill’s future retirement. Jack, being very curious, decides to investigate a little more into these mutual funds, and recognizes the two following investments as a substantial part of these funds:

• HSBC Finance Corp
• Bank of America Corp

This find has left Jack a little perplexed, and even more curious, so he decides to further his investigation. He pulls out his bills for the month, and finds one of his credit cards. He reads through the fine print and realizes that he has been paying almost 11% interest on his debt, which doesn’t surprise him, until he realizes why he was so intrigued with the two finds in the mutual fund portfolio… He makes his payments to HSBC! He’s been paying 11% to get 5%!

But it doesn’t end here, Jack still has his car loans to look over. He looks at his payments and finds that he has been paying 7% interest on those loans… to Bank of America! He has been paying 7% to get 5%! What a rip!

Hundreds and thousands of people do the exact same thing as Jack on a regular basis. After all, what are a large majority of the investments out there anyway? Someone else’s debt… or our own! Many search for investments when they have most of the investments they will ever need in their very own financial situation. They risk their money, hoping others will make debt payments in order to satisfy these investments, they get smaller returns, or losses, and in economic times such as these, they lose both money and sleep.

Continuing the story…

Jack realizes that he has a problem. He has created unnecessary middle men in his financial plan. He pays
fees, taxes, and incurs risk unnecessarily. So Jack decides to investigate a little more into his situation, and realizes that if he would eliminate the middle men, invest his money directly into his own personal debt, he will substantially increase his rate of return, never incurs taxes on that growth, eliminate risk, and be in complete control of his money. He seriously thinks it over and wonders why he never realized this before… Have you?

Upon finding more information about the best way to become his own banker, Jack learns that there are also particular vehicles that will allow him to create a pool of money in which he will have additional growth, tax benefits, and the ability to pass on wealth in a most efficient manner.

Jack and Jill now have the relief of knowing they are in complete control of their money, because they are their own bankers. They are at peace knowing that the market environment will not affect their financial future.

Understanding true principles of money is very important when making preparations for your financial future. Wealth is not a product, but is a process. Please be sure contact us for more information about these concepts.

Becoming Your Own Bank, or the Infinite Banking Concept, is the most powerful and innovative concept used today. To state briefly, the Infinite Banking Concept is the process of becoming wealthy not by investing your savings in high risk or low return investments, but by putting your capital to work for YOU and recapturing so many of the hundreds of dollars that go out of your circle of wealth every day. The idea of recapturing the lost dollars is a much safer and more powerful way of creating wealth than any other investment vehicle known today. This creates a low risk and high return method of accumulating wealth by taking principles that have been around for years and years and implementing them into our own personal lives.

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Collateral
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I know of no other strategy that has all of these benefits. Everything has restrictions somewhere, but this concept shows you the right vehicles to use to have these benefits, all of them.

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