The concept of single premium immediate annuities (SPIA) actually sprang from a much simpler time when there weren’t any stock markets, interest rates or financial institutions peddling scores of different financial products. The original annuities were a simple arrangement between a government and its citizens to provide for annual income payments in exchange for a […]

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Most of the information available on annuities today emphasizes their record of safety and their role as an asset and income safety net in the context of an overall financial plan. And, while there are many reasons to trumpet their advantages and benefits, owning annuities doesn’t come without some risk. On the risk-reward spectrum, all […]

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The decision to purchase a particular annuity is based on several factors including an investor’s financial circumstances as well as the features present in the product that, at the time, closely matched the investor’s needs and preferences. As time passes, financial circumstances can change and an annuity’s features may no longer be the match they […]

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Annuities have come a long way since the days when they were a simple exchange of cash for income. In their 2000 year history they have been used primarily as a way for governments or institutions to raise capital which was repaid to an individual in the form of a lifetime stream of income. Not […]

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Annuities are renowned for the safety and security they can provide for savers who need to accumulate funds for retirement as well as for retirees who rely upon them for a guaranteed stream of income. And for both of those purposes, the tax implications are fairly straightforward: Tax deferral during accumulation and ordinary income taxes […]

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