ANNUITY INSURANCE
| What is the difference between term and universal life insurance? Term Life Insurance: Is the most basic of insurance policies. It is nothing more than an insurance policy that provides protection for accidental death and possibly debilitating injuries for a specified period of time. If you or your beneficiaries do not make any claims during the term of such a policy, the policy will typically expire worthless. Generally, term life insurance is cheaper to buy during the earlier years of life, when the risk of death is relatively low. Prices rise in accordance with increasing risks and advancing age. Universal Life Insurance A type of flexible permanent life insurance offering the low-cost protection of term life insurance as well as a savings element (like whole life insurance) which is invested to provide a cash value buildup. The death benefit, savings element and premiums can be reviewed and altered as a policyholder's circumstances change. In addition, unlike whole life insurance, universal life insurance allows the policyholder to use the interest from his or her accumulated savings to help pay premiums. Universal life insurance was created to provide more flexibility than whole life insurance by allowing the policy owner to shift money between the insurance and savings components of the policy. Premiums, which are variable, are broken down by the insurance company into insurance and savings, allowing the policy owner to make adjustments based on their individual circumstances. For example, if the savings portion is earning a low return, it can be used instead of external funds to pay the premiums. Unlike whole life insurance, universal life allows the cash value of investments to grow at a variable rate that is adjusted monthly. Universal life insurance falls under a broader category of policies sometimes referred to as cash-value, or permanent, insurance. These types of insurance policies combine death benefits with a savings component or cash value that is reinvested and tax deferred. The savings portion is accumulated throughout the life of the policy and can sometimes be cashed in at some future point. Because these policies are permanent, any early termination of the contract by the policy holder is subject to penalties. During the earlier stages of your life, a large portion of the premium paid to this policy is routed to the savings component. During the later stages of life, when the cost of insurance is higher, less of the premium is devoted to the cash portion and more to the purchase of insurance. For example, if a 20-year-old adult purchases term insurance, his or her premiums might be $20 per month. With a universal policy, the same 20 year old might pay $100 a month, with $20 of that going toward death insurance and the remaining $80 going to the savings component. When the person reaches age 45, term insurance might cost $50 per month; however, with universal insurance, the person would still pay $100 a month, although a lower portion of this would go into the savings component. According to most unbiased experts, term life is more appropriate for the average individual looking to insure him or herself against unforeseen events. However, this does not mean that term life is better for everyone. For example, individuals looking for the tax advantages associated with cash-value plans are not concerned with the prohibitive costs related to those plans, and individuals who start families later in life and need insurance to protect their loved ones may also decide that cash-value insurance is more suitable than term life. What is variable life insurance? Variable Life Insurance:Is a permanent life insurance policy with an investment component. The policy has a cash value account, which is invested in a number of sub-accounts available in the policy. A sub-account acts similar to a mutual fund, except it's only available within a variable life insurance policy. A typical variable life policy will have several sub-accounts to choose from, with some offering upwards of 50 different options. The cash value account has the potential to grow as the underlying investments in the policy's sub-accounts grow - at the same time, as the underlying investments drop, so may the cash value. The appeal to variable life insurance lies in the investment element available in the policy and the favorable tax treatment of the policy's cash value growth. Annual growth of the cash value account is not taxable as ordinary income. Furthermore, these values can be accessed in later years and, when done properly through loans using the account as collateral, instead of direct withdrawals, they may be received free of any income taxation. Similar to mutual funds and other types of investments, a variable life insurance policy must be presented with a prospectus detailing all policy charges, fees and sub-account expenses Whole Life Insurance Policy A life insurance contract with level premiums that has both an insurance and an investment component. The insurance component pays a stated amount upon death of the insured. The investment component accumulates a cash value that the policyholder can withdraw or borrow against. As the most basic form of cash-value life insurance, whole life insurance is a way to accumulate wealth as regular premiums pay insurance costs and contribute to equity growth in a savings account where dividends or interest is allowed to build-up tax-deferred. KNOWLEDGEFINANCIAL.COM |
Cashing In Your Life Insurance Policy
-----------KNOWLEDGEFINANCIAL.COM-- EXPLAINS
In tough economic times, people are sometimes left scrambling for
cash to meet everyday expenses and lifestyle demands. Your life
insurance policy is a possible source of funds - but should you tap
into it?
There are certainly some drawbacks to using life insurance to meet
immediate cash needs, especially if you're compromising your
long-term goals or your family's financial future. Nevertheless, if other
options are not available, life insurance, especially cash-value life
insurance, can be a source of needed income
Methods of Accessing Cash
Cash-value life insurance, such as whole life and universal life,
builds reserves through excess premiums plus earnings. These
deposits are held in a cash-accumulation account within the policy.
Cash-value life insurance offers the opportunity to access cash
accumulations within the policy either through withdrawals, policy
loans, or partial or full surrender of the policy. Another alternative
involves selling your policy for cash, a method known as a life
settlement.
Be sure to bear in mind that although cash from the policy might be
useful during stressful financial times, you could face unwanted
consequences depending on the method you use to access the
funds.
Withdrawals
Generally, it is possible to withdraw limited amounts of cash from a
life insurance policy. The amount available differs based on the type
of policy you own and the company issuing it. The main advantage of
cash-value withdrawals is that they are not taxable up to your policy
basis, as long as your policy is not classified as a modified
endowment contract (MEC).
However, cash-value withdrawals can have unexpected or unrealized
consequences:
Withdrawals that reduce your cash value could cause a reduction of
your death benefit - a potential source of funds you might need for
income replacement, business purposes or wealth preservation.
Cash-value withdrawals are not always received income-tax free. For
example, if you take a withdrawal during in the first 15 years of the
policy and the withdrawal causes a reduction in the policy's death
benefit, some or all of the withdrawn cash could be subject to
taxation.
Withdrawals are treated as taxable to the extent that they exceed your
basis in the policy.
Withdrawals that reduce your cash surrender value could cause your
premiums to increase in order to maintain the same death benefit;
otherwise, the policy could lapse.
If your policy has been classified as an MEC, withdrawals generally
are taxed according to the rules applicable to annuities - cash
disbursements are considered to be made from interest first and are
subject to income tax and possibly the 10% early-withdrawal penalty
if you're under age 59.5 at the time of the withdrawal.
Loans -----------------KNOWLEDGEFINANCIAL.COM-- EXPLAINS:
Most cash-value policies allow you to borrow money from the issuer
using your cash-accumulation account as collateral. Depending on
the terms of the policy, the loan might be subject to interest at varying
rates; however, you are not obligated to financially "qualify" for the
loan. The amount you can borrow is based on the value of the
policy's cash-accumulation account and the contract's terms
The good news is that borrowed amounts from non-MEC policies
are not taxable, and you don't have to make payments on the loan,
even though the outstanding loan balance might be accruing interest.
The bad news is that loan balances generally reduce your policy's
death benefit, meaning your beneficiaries might receive less than
you intended. Also, an unpaid loan that is accruing interest reduces
your cash value, which can cause the policy to lapse if insufficient
premiums are paid to maintain the death benefit. If the loan is still
outstanding when the policy lapses or if you later surrender the
insurance, the borrowed amount becomes taxable to the extent the
cash value (without reduction for the outstanding loan balance)
exceeds your basis in the contract.
Policy loans from a policy that is considered an MEC are treated as
distributions, meaning the amount of the loan up to the earnings in
the policy will be taxable and could also be subject to the pre-59.5
early-withdrawal penalty
KNOWLEDGEFINANCIAL.COM
-----------KNOWLEDGEFINANCIAL.COM-- EXPLAINS
In tough economic times, people are sometimes left scrambling for
cash to meet everyday expenses and lifestyle demands. Your life
insurance policy is a possible source of funds - but should you tap
into it?
There are certainly some drawbacks to using life insurance to meet
immediate cash needs, especially if you're compromising your
long-term goals or your family's financial future. Nevertheless, if other
options are not available, life insurance, especially cash-value life
insurance, can be a source of needed income
Methods of Accessing Cash
Cash-value life insurance, such as whole life and universal life,
builds reserves through excess premiums plus earnings. These
deposits are held in a cash-accumulation account within the policy.
Cash-value life insurance offers the opportunity to access cash
accumulations within the policy either through withdrawals, policy
loans, or partial or full surrender of the policy. Another alternative
involves selling your policy for cash, a method known as a life
settlement.
Be sure to bear in mind that although cash from the policy might be
useful during stressful financial times, you could face unwanted
consequences depending on the method you use to access the
funds.
Withdrawals
Generally, it is possible to withdraw limited amounts of cash from a
life insurance policy. The amount available differs based on the type
of policy you own and the company issuing it. The main advantage of
cash-value withdrawals is that they are not taxable up to your policy
basis, as long as your policy is not classified as a modified
endowment contract (MEC).
However, cash-value withdrawals can have unexpected or unrealized
consequences:
Withdrawals that reduce your cash value could cause a reduction of
your death benefit - a potential source of funds you might need for
income replacement, business purposes or wealth preservation.
Cash-value withdrawals are not always received income-tax free. For
example, if you take a withdrawal during in the first 15 years of the
policy and the withdrawal causes a reduction in the policy's death
benefit, some or all of the withdrawn cash could be subject to
taxation.
Withdrawals are treated as taxable to the extent that they exceed your
basis in the policy.
Withdrawals that reduce your cash surrender value could cause your
premiums to increase in order to maintain the same death benefit;
otherwise, the policy could lapse.
If your policy has been classified as an MEC, withdrawals generally
are taxed according to the rules applicable to annuities - cash
disbursements are considered to be made from interest first and are
subject to income tax and possibly the 10% early-withdrawal penalty
if you're under age 59.5 at the time of the withdrawal.
Loans -----------------KNOWLEDGEFINANCIAL.COM-- EXPLAINS:
Most cash-value policies allow you to borrow money from the issuer
using your cash-accumulation account as collateral. Depending on
the terms of the policy, the loan might be subject to interest at varying
rates; however, you are not obligated to financially "qualify" for the
loan. The amount you can borrow is based on the value of the
policy's cash-accumulation account and the contract's terms
The good news is that borrowed amounts from non-MEC policies
are not taxable, and you don't have to make payments on the loan,
even though the outstanding loan balance might be accruing interest.
The bad news is that loan balances generally reduce your policy's
death benefit, meaning your beneficiaries might receive less than
you intended. Also, an unpaid loan that is accruing interest reduces
your cash value, which can cause the policy to lapse if insufficient
premiums are paid to maintain the death benefit. If the loan is still
outstanding when the policy lapses or if you later surrender the
insurance, the borrowed amount becomes taxable to the extent the
cash value (without reduction for the outstanding loan balance)
exceeds your basis in the contract.
Policy loans from a policy that is considered an MEC are treated as
distributions, meaning the amount of the loan up to the earnings in
the policy will be taxable and could also be subject to the pre-59.5
early-withdrawal penalty
KNOWLEDGEFINANCIAL.COM
| Annuities & Pensions Insurance-------KNOWLEDGEFINANCIAL.COM-- EXPLAINS: Basically, an annuity is just a series or stream of payments. “Annuity” comes from the Latin for “year”. In the context of life insurance, it is a contract between you and an insurance company under which the insurance company pays you money for a stipulated period — often for life. The payments are frequently monthly. The person receiving the payments is referred to as an “annuitant.” An annuity can provide you with a tax-deferred way of saving for your retirement. Variable deferred annuities may offer optional "living benefits", for a fee, to help protect your account balance, future income and death benefits from market fluctuations. Once you've retired, an annuity can give you a guaranteed stream of income for as long as you live.** Submit the secure form to the right to speak with a MetLife financial representative and find out if annuities are right for you. Annuities---KNOWLEDGEFINANCIAL.COM-- EXPLAINS; Planning today means a secure tomorrow. Sometimes described as the opposite of Life Insurance, annuities protect you against the possibility of outliving your financial resources. State Farm offers you several types of annuities, which can also be a part of your personal retirement plan. |
| Annuities are sometimes described as the opposite of life insurance because annuities can help you protect against the possibility of living too long and outliving your resources. An annuity is a contract under which an insurance company promises to make a series of payments to a person in exchange for a single premium or a series of premiums. You can also use a deferred annuity to help you accumulate money for future use. Future Income (Flexible Premium Deferred Fixed Annuity): This policy allows you to accumulate money over time at a current interest rate (with a guaranteed minimum), and then allows you to choose from several different payout options. ----------KNOWLEDGEFINANCIAL.COM-- EXPLAINS: Future Income Plus (Deferred Annuity with Single Premium): This policy allows you to accumulate money over time at a current interest rate (with a guaranteed minimum), and then allows you to choose from several different payout options. You may also choose a new interest rate guarantee period from those available during a 30-day window at the end of each interest rate guarantee period. This is a single premium Deferred Annuity product. Future Income Flex (Variable Deferred Annuity): This policy allows you to accumulate money over time in a variety of underlying investments, and then allows you to choose from several different payout options. Guaranteed Income (Single Premium Immediate Annuities): These policies allow you to immediately convert a lump sum of money into a guaranteed payout for as long as you live. Guaranteed payouts are also available for a certain number of years. Some annuities are used to fund a "Tax-Qualified" plan.* These tax-qualified plans can include: |
KNOWLEDGEFINANCIAL.COM
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Annuity Insurance Investment:
Annuities are sometimes described as the opposite of life insurance. An annuity is a contract under which an insurance company promises
to make a series of payments to a person in exchange for a single premium or a series of premiums. FOR MORE INFORMATION; CONTACT
A FLORIDA AGENT AT: 786-709-6577
Annuities are sometimes described as the opposite of life insurance. An annuity is a contract under which an insurance company promises
to make a series of payments to a person in exchange for a single premium or a series of premiums. FOR MORE INFORMATION; CONTACT
A FLORIDA AGENT AT: 786-709-6577
SAVE YOUR HOME, SAVE YOUR CREDIT, REDUCE YOUR MONTHLY
PAYMENT, AVOID FORECLOSURE.
HOME BUYING
Home ownership is still very much a part of the American dream
but one that mandates homework, legwork and considerable effort
on your part to ensure that the process goes
as smoothly as possible. Here's how to make your dream a reality.
Home-Selling; HOME SELLING: WAYS TO SELL A PROPERTY FAST
AND EASY FOR THE TOP PRICE!
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REFINANCE A PROPERTY. NOW IT'S THE BEST TIME FOR
REFINANCING, THE INTEREST RATE IS
VERY LOW.
MONEY CRISIS: FINANCIAL SYSTEM IN TROUBLE: BAIL-OUT
PACKAGE. Americans react.
Where is the safe place to put MONEY? What about our retirement
accounts?
NO PANIC, NO EMOTION, NO WRONG DECISION!
HERE ARE THE SAFEST PLACES WHERE YOU CAN PUT YOUR
MONEY AND HAVE PEACE OF MIND!
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Tips For The Successful Long-Term Investor, Having
A Plan: learn the Basis Of Success
SMALL BUSINESS, METHODS, TECHNIQUES, AND STRATEGIES.
Business structures 101, How to land a bank loan? It's tougher to
get business loans in this lender's market, but these tips
can improve your chances
THE 16 DAYS THAT SHOOCK THE US
ECONOMY IN SEPTEMBER, 2008.
A shocking series of events that forever
changed the financial markets.
When banks don't lend to each other and the
credit system gets backed up, consumers have
a ha
rd time getting a loan
Monthly news letter about the Financial world,
Saving, Investment, Real Estate,Economy
Money crisis: US FINANCIAL SYSTEM IN TROUBLE, BAIL-OUT
PACKAGE. Americans react
Questions: what are you doing with your money in the wake of the
financial crisis?
Where is the safe place to put MONEY?
NO PANIC, NO EMOTION, NO WRONG DECISION!
HERE ARE THE SAFEST PLACES WHERE YOU CAN PUT YOUR
MONEY AND HAVE PEACE OF MIND!
FINANCIAL FREEDOM: A SMARTEST WAY TO PREPARE A BETTER
FUTURE IS TO PLAN TODAY TO OBTAIN A COMPLETE FINANCIAL
FREEDOM.
BUILDING WEALTH! How to Become Wealthy?
Nine Truths That Can Set You on the Path to Financial Freedom.
THE FOREX MARKET:THE WORLD LARGEST EXCHANGE MARKET
The foreign exchange market, or forex, has notoriously been the
domain
of government central banks and commercial and investment
banks. But
now more than ever individuals are tackling the forex market as it
offers
trading 24-hours a day, five days a week
AMERICA’S MONEY CRISIS / Bailout 101: What new law says
Here's a rundown of key provisions of the financial rescue plan that
United State Senate voted, Wednesday October 1; and the house
voted Friday October 3, 2008.
FINANCIAL AID: FREE SCHOLARSHIP FOR SCHOOL
FREE GOVERNMENT GRANTS MONEY FOR SCHOOL
LOW INTEREST RATE LOANS FROM THE NATION LARGEST
SOURCES OF LOCAL, NATIONAL, SPECIFIC SCHOLARSHIP.
STOCK MARKET A WAY TO INVEST AND MULTIPLY YOUR PROFITS.
THESE INDUSTRIES HAS THOUSANDS OF COMPANIES TO BUY
STOCKS FROM:
PETROLEUM, AUTOMOBILE, CONSTRUCTION, REAL ESTATE,
PHARMACEUTICAL, ENERGY, ELECTRONIC, RETAIL, BANKING AND
FINANCING,
COMMUNICATION, TRANSPORTATION, RESOURCE MINERALS ETC.
PAYMENT, AVOID FORECLOSURE.
HOME BUYING
Home ownership is still very much a part of the American dream
but one that mandates homework, legwork and considerable effort
on your part to ensure that the process goes
as smoothly as possible. Here's how to make your dream a reality.
Home-Selling; HOME SELLING: WAYS TO SELL A PROPERTY FAST
AND EASY FOR THE TOP PRICE!
FINANCIAL KNOWLEDGE: The Successful Investment Journey, Ten
Tips For The Successful
How to Become Wealthy?
Nine Truths That Can Set You on the Path to Financial Freedom.
SOCIAL SECURITY; THE ULTIMATE RETIREMENT GUIDE. HOW DOES
SOCIAL
SECURITY WORK?
Home refinancing: REFINANCE: 10 GREAT REASONS TO
REFINANCE A PROPERTY. NOW IT'S THE BEST TIME FOR
REFINANCING, THE INTEREST RATE IS
VERY LOW.
MONEY CRISIS: FINANCIAL SYSTEM IN TROUBLE: BAIL-OUT
PACKAGE. Americans react.
Where is the safe place to put MONEY? What about our retirement
accounts?
NO PANIC, NO EMOTION, NO WRONG DECISION!
HERE ARE THE SAFEST PLACES WHERE YOU CAN PUT YOUR
MONEY AND HAVE PEACE OF MIND!
FINANCIAL KNOWLEDGE: The Successful Investment Journey, Ten
Tips For The Successful Long-Term Investor, Having
A Plan: learn the Basis Of Success
SMALL BUSINESS, METHODS, TECHNIQUES, AND STRATEGIES.
Business structures 101, How to land a bank loan? It's tougher to
get business loans in this lender's market, but these tips
can improve your chances
THE 16 DAYS THAT SHOOCK THE US
ECONOMY IN SEPTEMBER, 2008.
A shocking series of events that forever
changed the financial markets.
When banks don't lend to each other and the
credit system gets backed up, consumers have
a ha
rd time getting a loan
Monthly news letter about the Financial world,
Saving, Investment, Real Estate,Economy
Money crisis: US FINANCIAL SYSTEM IN TROUBLE, BAIL-OUT
PACKAGE. Americans react
Questions: what are you doing with your money in the wake of the
financial crisis?
Where is the safe place to put MONEY?
NO PANIC, NO EMOTION, NO WRONG DECISION!
HERE ARE THE SAFEST PLACES WHERE YOU CAN PUT YOUR
MONEY AND HAVE PEACE OF MIND!
FINANCIAL FREEDOM: A SMARTEST WAY TO PREPARE A BETTER
FUTURE IS TO PLAN TODAY TO OBTAIN A COMPLETE FINANCIAL
FREEDOM.
BUILDING WEALTH! How to Become Wealthy?
Nine Truths That Can Set You on the Path to Financial Freedom.
THE FOREX MARKET:THE WORLD LARGEST EXCHANGE MARKET
The foreign exchange market, or forex, has notoriously been the
domain
of government central banks and commercial and investment
banks. But
now more than ever individuals are tackling the forex market as it
offers
trading 24-hours a day, five days a week
AMERICA’S MONEY CRISIS / Bailout 101: What new law says
Here's a rundown of key provisions of the financial rescue plan that
United State Senate voted, Wednesday October 1; and the house
voted Friday October 3, 2008.
FINANCIAL AID: FREE SCHOLARSHIP FOR SCHOOL
FREE GOVERNMENT GRANTS MONEY FOR SCHOOL
LOW INTEREST RATE LOANS FROM THE NATION LARGEST
SOURCES OF LOCAL, NATIONAL, SPECIFIC SCHOLARSHIP.
STOCK MARKET A WAY TO INVEST AND MULTIPLY YOUR PROFITS.
THESE INDUSTRIES HAS THOUSANDS OF COMPANIES TO BUY
STOCKS FROM:
PETROLEUM, AUTOMOBILE, CONSTRUCTION, REAL ESTATE,
PHARMACEUTICAL, ENERGY, ELECTRONIC, RETAIL, BANKING AND
FINANCING,
COMMUNICATION, TRANSPORTATION, RESOURCE MINERALS ETC.
The Ultimate Retirement Guide for Everyone; Retire Rich, Retire
Early.
THE BEST RETIREMENT GUIDE EVER; WHAT ARE 401K, ROTH
401K, INDIVIDUAL 401K, 403B, 457 PLAN, THRIFT SAVINGS PLAN.
What is a SEP IRA? What is a SIMPLE IRA? --- SEE BELOW!
Long-term care insurance?
Is a long-term care insurance policy really provides money to
help cover the costs of living if you are no longer able to take
care of yourself.?
SOCIAL SECURITY RETIREMENT GUIDE. HOW DOES SOCIAL
SECURITY WORK?
What is the importance and benefits of life insurance in real life,
and at retirement age?
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an IRA? And what does it matter?
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Insurance? Are Annuities Planning today for a secure tomorrow?
Early.
THE BEST RETIREMENT GUIDE EVER; WHAT ARE 401K, ROTH
401K, INDIVIDUAL 401K, 403B, 457 PLAN, THRIFT SAVINGS PLAN.
What is a SEP IRA? What is a SIMPLE IRA? --- SEE BELOW!
Long-term care insurance?
Is a long-term care insurance policy really provides money to
help cover the costs of living if you are no longer able to take
care of yourself.?
SOCIAL SECURITY RETIREMENT GUIDE. HOW DOES SOCIAL
SECURITY WORK?
What is the importance and benefits of life insurance in real life,
and at retirement age?
Pension Plans / IRA / INDIVIDUAL RETIREMENT ACCOUNT. What is
an IRA? And what does it matter?
What is Annuity Insurance Investment, Annuity & Pension
Insurance? Are Annuities Planning today for a secure tomorrow?
Annuity Overview--------KNOWLEDGEFINANCIAL.COM-- EXPLAINS:
Annuities primarily offer a source of income, either now or at a set
future date, such as retirement. An annuity can also have a tax
advantage. For example, a deferred annuity accumulates
tax-deferred interest until you withdraw the funds.
What are the most common types of Annuities?
Single Premium:
An annuity that is purchased by paying one lump sum to the
insurance company as premium.
Flexible Premium:
An annuity that is purchased by paying multiple premiums to the
insurance company.
Immediate Annuities:
With an immediate annuity, you pay a single premium and
immediately start receiving payments at the end of each payment
period, which is usually monthly or annually.
Deferred Annuities:
A deferred annuity is established by you paying one or more
premiums over what is referred to as accumulation period. The
premiums you pay and the interest credited to the premiums goes
into a fund called an accumulation fund.
There may be a minimum guaranteed interest rate at which your
money will accumulate during the accumulation period. The annuity
payments you will receive begin at a future point in time called the
maturity date. KNOWLEDGEFINANCIAL.COM-- EXPLAINS:
You will receive payments during a time period called the payout
period. You do not pay income taxes on the interest earned during
the accumulation period unless you withdraw funds from its cash
value. These taxes are deferred until the payout period.
Fixed Annuities:
A fixed annuity provides fixed-dollar income payments backed by the
guarantees in the contract. You cannot lose your investment once
your income payments begin. The amount of those payments will not
change. With fixed annuities, the company bears the investment risk.
Equity Indexed Annuities:
Is an annuity, either immediate or deferred, that earns interest or
provides benefits that are linked to an external equity index, such as
Standard and Poor's 500 Composite Stock Price Index. When you
purchase an equity-indexed annuity, you own an insurance contract
not shares of any stock or index.
Variable Annuities:
Variable annuity investments are securities, which tend to fluctuate
with economic conditions. The value of a variable annuity depends
upon the value of the underlying investment portfolios associated
with the annuity.
The owner bears the investment risk for the value of the security.
The value of the annuity will increase with a favorable investment
performance of the security. The annuity's value will decrease with a
poor investment performance.
In fact, you can lose your investment. A product receives the
classification of a variable annuity if the value during either the
accumulation period or the payout period depends on the value of
the security. Some variable annuities provide a choice of either a
variable payout or a fixed payout.
Annuities primarily offer a source of income, either now or at a set
future date, such as retirement. An annuity can also have a tax
advantage. For example, a deferred annuity accumulates
tax-deferred interest until you withdraw the funds.
What are the most common types of Annuities?
Single Premium:
An annuity that is purchased by paying one lump sum to the
insurance company as premium.
Flexible Premium:
An annuity that is purchased by paying multiple premiums to the
insurance company.
Immediate Annuities:
With an immediate annuity, you pay a single premium and
immediately start receiving payments at the end of each payment
period, which is usually monthly or annually.
Deferred Annuities:
A deferred annuity is established by you paying one or more
premiums over what is referred to as accumulation period. The
premiums you pay and the interest credited to the premiums goes
into a fund called an accumulation fund.
There may be a minimum guaranteed interest rate at which your
money will accumulate during the accumulation period. The annuity
payments you will receive begin at a future point in time called the
maturity date. KNOWLEDGEFINANCIAL.COM-- EXPLAINS:
You will receive payments during a time period called the payout
period. You do not pay income taxes on the interest earned during
the accumulation period unless you withdraw funds from its cash
value. These taxes are deferred until the payout period.
Fixed Annuities:
A fixed annuity provides fixed-dollar income payments backed by the
guarantees in the contract. You cannot lose your investment once
your income payments begin. The amount of those payments will not
change. With fixed annuities, the company bears the investment risk.
Equity Indexed Annuities:
Is an annuity, either immediate or deferred, that earns interest or
provides benefits that are linked to an external equity index, such as
Standard and Poor's 500 Composite Stock Price Index. When you
purchase an equity-indexed annuity, you own an insurance contract
not shares of any stock or index.
Variable Annuities:
Variable annuity investments are securities, which tend to fluctuate
with economic conditions. The value of a variable annuity depends
upon the value of the underlying investment portfolios associated
with the annuity.
The owner bears the investment risk for the value of the security.
The value of the annuity will increase with a favorable investment
performance of the security. The annuity's value will decrease with a
poor investment performance.
In fact, you can lose your investment. A product receives the
classification of a variable annuity if the value during either the
accumulation period or the payout period depends on the value of
the security. Some variable annuities provide a choice of either a
variable payout or a fixed payout.
What is a maturity date?
The maturity date is determined when you purchase an annuity. It is
the date on which you can begin receiving payments from your
annuity. You will be asked at the time of maturity to select a
settlement option. The settlement option determines how you will
receive payments from your annuity.
The maturity date is determined when you purchase an annuity. It is
the date on which you can begin receiving payments from your
annuity. You will be asked at the time of maturity to select a
settlement option. The settlement option determines how you will
receive payments from your annuity.
 | |  | |  | |  | |  | |  | |  | |  |
 |  |  |  |  |  |  |  |
Annuity Overview
Annuities primarily offer a source of income, either now or at a set future date, such as retirement. An annuity can also have a
tax advantage. --- Is an Annuity right for you?
Annuity products primarily offer a source of income, either now or at a set future date, such as your retirement. If this is not what
you are seeking, then you should consider other types of investments. BY CONTACTING A FLORIDA AGENT AT: 786-709-6577
Annuities primarily offer a source of income, either now or at a set future date, such as retirement. An annuity can also have a
tax advantage. --- Is an Annuity right for you?
Annuity products primarily offer a source of income, either now or at a set future date, such as your retirement. If this is not what
you are seeking, then you should consider other types of investments. BY CONTACTING A FLORIDA AGENT AT: 786-709-6577
Annuity - Tax Qualified And Non-Qualified A Qualified annuity is an
approved IRS Pension vehicle used for IRAs, 401K rollovers, Tax
Sheltered Annuities (TSA's) and other approved pension plans.
A Non-Qualified annuity is an annuity where contributions are not
tax deductible . Contributions to qualified annuities are generally
tax deductible, and taxes on interest are deferred until withdrawal.
In contrast, contributions to a Non-Qualified annuity are not tax
deductible, however, the interest accumulation in the contract is
still deferred.
Rollover contributions from prior tax qualified plans, must be
deposited into another qualified account within 60 days of
distribution or the lump sum becomes taxable.
If an annuity is surrendered or money is withdrawn prior to age 59
½, distributions may be subject to ordinary income tax plus a 10%
penalty imposed by the IRS. Additionally, withdrawals from
qualified annuities must generally start by age 70½ or the owner
will be subject to certain penalties.
approved IRS Pension vehicle used for IRAs, 401K rollovers, Tax
Sheltered Annuities (TSA's) and other approved pension plans.
A Non-Qualified annuity is an annuity where contributions are not
tax deductible . Contributions to qualified annuities are generally
tax deductible, and taxes on interest are deferred until withdrawal.
In contrast, contributions to a Non-Qualified annuity are not tax
deductible, however, the interest accumulation in the contract is
still deferred.
Rollover contributions from prior tax qualified plans, must be
deposited into another qualified account within 60 days of
distribution or the lump sum becomes taxable.
If an annuity is surrendered or money is withdrawn prior to age 59
½, distributions may be subject to ordinary income tax plus a 10%
penalty imposed by the IRS. Additionally, withdrawals from
qualified annuities must generally start by age 70½ or the owner
will be subject to certain penalties.
Annuity - Fixed, Variable and Indexed Annuities Annuity
accumulation values and payouts may be "Fixed" - paying a stated
rate of interest, "Variable" - based on the value of securities such
as stocks or bonds, or "Equity Indexed" - linked to an index such as
Standard and Poor’s 500 Composite Stock Price Index.
Fixed annuities pay interest at a rate set annually by the company,
and normally have a minimum guaranteed rate. Once the payout or
annuitization phase begins, payments are fixed and do not fluctuate
based on interest rate changes.
Variable annuity values are based on the underlying value of the
securities they invest in, such as mutual funds or common stocks.
Variable annuities generally do not have maximum limits or a
minimum guarantee, which means you could potentially lose your
investment.
Equity indexed annuities are a hybrid between fixed and variable
annuities. These contracts generally base growth on an equity
index such as Standard & Poor’s 500 Composite Stock Price Index.
Equity indexed annuities are not normally subject to loss of
principal like variable annuities, however account growth is often
limited to a percentage (%) of the growth of the equity index on
which it is based, and may also contain caps on the maximum
annual growth. For example, a contract might credit gains based at
70 percent of the growth of the S & P 500 Index, limited to no more
than 10 percent per year.
.. Equity Indexed Annuity Alert
..
accumulation values and payouts may be "Fixed" - paying a stated
rate of interest, "Variable" - based on the value of securities such
as stocks or bonds, or "Equity Indexed" - linked to an index such as
Standard and Poor’s 500 Composite Stock Price Index.
Fixed annuities pay interest at a rate set annually by the company,
and normally have a minimum guaranteed rate. Once the payout or
annuitization phase begins, payments are fixed and do not fluctuate
based on interest rate changes.
Variable annuity values are based on the underlying value of the
securities they invest in, such as mutual funds or common stocks.
Variable annuities generally do not have maximum limits or a
minimum guarantee, which means you could potentially lose your
investment.
Equity indexed annuities are a hybrid between fixed and variable
annuities. These contracts generally base growth on an equity
index such as Standard & Poor’s 500 Composite Stock Price Index.
Equity indexed annuities are not normally subject to loss of
principal like variable annuities, however account growth is often
limited to a percentage (%) of the growth of the equity index on
which it is based, and may also contain caps on the maximum
annual growth. For example, a contract might credit gains based at
70 percent of the growth of the S & P 500 Index, limited to no more
than 10 percent per year.
.. Equity Indexed Annuity Alert
..
..TERM INSURANCE ADVANTAGES, TERM INSURANCE GENERAL KNOWLEDGE. Buy the term,
and invest the difference.
.. INVESTMENT PRODUCTS: Investing & Money Management Basics. FINANCIAL SOLUTIONS,
TOOLS & RESOURCES. LEARN MORE...
INSURANCE PRODUCTS: How to make profits with the insurance companies?
and invest the difference.
.. INVESTMENT PRODUCTS: Investing & Money Management Basics. FINANCIAL SOLUTIONS,
TOOLS & RESOURCES. LEARN MORE...
INSURANCE PRODUCTS: How to make profits with the insurance companies?
..TERM INSURANCE ADVANTAGES, TERM INSURANCE GENERAL
KNOWLEDGE. Buy the term, and invest the difference.
.. INVESTMENT PRODUCTS: Investing & Money Management Basics.
FINANCIAL SOLUTIONS, TOOLS & RESOURCES. LEARN MORE...
INSURANCE PRODUCTS: How to make profits with the insurance
companies?
KNOWLEDGE. Buy the term, and invest the difference.
.. INVESTMENT PRODUCTS: Investing & Money Management Basics.
FINANCIAL SOLUTIONS, TOOLS & RESOURCES. LEARN MORE...
INSURANCE PRODUCTS: How to make profits with the insurance
companies?
..TERM INSURANCE ADVANTAGES, TERM INSURANCE GENERAL
KNOWLEDGE. Buy the term, and invest the difference.
.. INVESTMENT PRODUCTS: Investing & Money Management Basics.
FINANCIAL SOLUTIONS, TOOLS & RESOURCES. LEARN MORE...
INSURANCE PRODUCTS: How to make profits with the insurance
companies?
KNOWLEDGE. Buy the term, and invest the difference.
.. INVESTMENT PRODUCTS: Investing & Money Management Basics.
FINANCIAL SOLUTIONS, TOOLS & RESOURCES. LEARN MORE...
INSURANCE PRODUCTS: How to make profits with the insurance
companies?
| LICENSED INSURANCE AGENT: 786-709-6577 FOR INSURANCE GENERAL INFORMATION. LICENSED REAL ESTATE AGENT: 786-709-6577 FOR REAL ESTATE COMPLETE ADVICE & INFORMATION. BUYING SELLING & LEASING LICENSED MORTGAGE BROKER: 786-709-6577 FOR MORTGAGE GLOBAL INFORMATION, FINANCING & REFINANCING. |
| TALK TO A FLORIDA LICENSED INSURANCE AGENT BY CALLING AT: 786-709-6577. TALK TO A FLORIDA LICENSED REAL ESTATE AGENT AT: 786-709-6577 TALK TO A FLORIDA LICENSED MORTGAGE BROKER AT: 786-709-6577 FOR REAL ESTATE FINANCING & REFINANCING. |
| Life Insurance Advantages, Benefits, & Features While Alive and After Death... Learn More Here! GET A FREE INSURANCE QUOTE, Click Here! |
Five Insurance Policies Everyone Should Have
Protecting your most important assets is an important step in
creating a solid personal financial plan. The right insurance
policies will go a long way toward helping you safeguard your
earning power and your possessions.
TERM INSURANCE ADVANTAGES, TERM INSURANCE GENERAL
KNOWLEDGE. Buy the term, and invest the difference.
THE IMPORTANCE OF INSURANCE IN SOMEONE'S LIFE!
Your Financial Plan; Insurance is an important element of any
sound financial plan
Different types of insurance protect you and your loved ones in
different ways against the cost of accidents, illness, disability,
and death.
INSURANCE KNOWLEDGE
LIFE INSURANCE ADVANTAGES, FEATURES AND
BENEFITS WHILE ALIVE AND AFTER DEATH.
INSURANCE GENERAL KNOWLEDGE, GLOBAL
INSURANCE INFORMATION FOR BETTER CHOICES,
BETTER DECISION, BETTER GUARANTEE AND
BETTER SATISFACTION. LEARN MORE HERE...
INVESTMENT PRODUCTS: Investing & Money Management
Basics. FINANCIAL SOLUTIONS, TOOLS & RESOURCES. LEARN
MORE...
..HOW TO OBTAIN AN INSURANCE LICENSE, AND GET HIRED,
START WORKING IMMEDIATELY WITH ONE OF THE GREATEST
INSURANCE COMPANY IN THE WORLD?
FREE INSURANCE SCHOOL, FREE COURSE, FREE TRAINING, FREE
FINGERPRINT, FREE BOOKS FOR THOSE WHO LIVE IN MIAMI DADE
AND BROWARD COUNTY FLORIDA. LEARN MORE HERE...
Life Insurance
Life insurance, payable when you die, can provide a surviving
spouse, children, and other dependents with the funds
necessary to maintain their standards of living, can help repay
debt, and can fund education tuition costs.
LIFE INSURANCE QUOTE. LEARN MORE..
INSURANCE PRODUCTS: How to make profits with the insurance
companies?
Auto Insurance
Auto insurance protects you from damage to the often
considerable investment in a car and/or from liability for damage
or injury caused by you or someone driving your vehicle.
The 10 Best Ways to Lower Your Car Insurance Bill
Money saved is money earned. Many people spend more than is
absolutely necessary on their daily bills, the things that they take
for granted.
Auto Insurance - What do You really Need?
When shopping for car insurance, you must take a number of
factors into consideration in order to obtain the best coverage
for your needs at a reasonable price. For instance, how much is
your vehicle worth?
Home-owner's Insurance: How to Save Money on Home
Insurance?
Home-owner's insurance should allow you to rebuild and
refurnish your home after a catastrophe and insulate you from
lawsuits if someone is injured on your property.
Guide To Homeowners Insurance: Different Types of Coverage
All insurance is definitely not created equal or, put another way,
you get what you pay for. The least costly homeowners
insurance will likely give you the least amount of coverage, and
vice versa.
Ways to Reduce Your Life Insurance Premium
While you can't do anything about two of the three main factors
affecting your insurance premium (age and family medical
history), there are steps you can take regarding the third -
lifestyle. You could lower your insurance premium if you:
Annuities & Pensions Insurance
Basically, an annuity is just a series or stream of payments.
“Annuity” comes from the Latin for “year”. In the context of life
insurance, it is a contract between you and an insurance
company under which the insurance company pays you money
for a stipulated period.
Things to Remember When Buying Health-care
It’s always much easier and much less complicated choosing
healthcare coverage from your employer.
Your Health Insurance; and what it should Cover
How to analyzed the costs that you pay under your health-care
insurance plan. In this article we’ll look at some of the basic
coverages which should be included in your policy.
Business Needs Business Insurance
Three Common Myths About Liability and
Understanding the Value of Insurance
Disability Income Insurance
Insurance?
If you were unable to work for an extended period
of time due to an injury or illness, how long would
you be able to pay your bills and meet your day-to-
day expenses? LEARN MORE...
Protecting your most important assets is an important step in
creating a solid personal financial plan. The right insurance
policies will go a long way toward helping you safeguard your
earning power and your possessions.
TERM INSURANCE ADVANTAGES, TERM INSURANCE GENERAL
KNOWLEDGE. Buy the term, and invest the difference.
THE IMPORTANCE OF INSURANCE IN SOMEONE'S LIFE!
Your Financial Plan; Insurance is an important element of any
sound financial plan
Different types of insurance protect you and your loved ones in
different ways against the cost of accidents, illness, disability,
and death.
INSURANCE KNOWLEDGE
LIFE INSURANCE ADVANTAGES, FEATURES AND
BENEFITS WHILE ALIVE AND AFTER DEATH.
INSURANCE GENERAL KNOWLEDGE, GLOBAL
INSURANCE INFORMATION FOR BETTER CHOICES,
BETTER DECISION, BETTER GUARANTEE AND
BETTER SATISFACTION. LEARN MORE HERE...
INVESTMENT PRODUCTS: Investing & Money Management
Basics. FINANCIAL SOLUTIONS, TOOLS & RESOURCES. LEARN
MORE...
..HOW TO OBTAIN AN INSURANCE LICENSE, AND GET HIRED,
START WORKING IMMEDIATELY WITH ONE OF THE GREATEST
INSURANCE COMPANY IN THE WORLD?
FREE INSURANCE SCHOOL, FREE COURSE, FREE TRAINING, FREE
FINGERPRINT, FREE BOOKS FOR THOSE WHO LIVE IN MIAMI DADE
AND BROWARD COUNTY FLORIDA. LEARN MORE HERE...
Life Insurance
Life insurance, payable when you die, can provide a surviving
spouse, children, and other dependents with the funds
necessary to maintain their standards of living, can help repay
debt, and can fund education tuition costs.
LIFE INSURANCE QUOTE. LEARN MORE..
INSURANCE PRODUCTS: How to make profits with the insurance
companies?
Auto Insurance
Auto insurance protects you from damage to the often
considerable investment in a car and/or from liability for damage
or injury caused by you or someone driving your vehicle.
The 10 Best Ways to Lower Your Car Insurance Bill
Money saved is money earned. Many people spend more than is
absolutely necessary on their daily bills, the things that they take
for granted.
Auto Insurance - What do You really Need?
When shopping for car insurance, you must take a number of
factors into consideration in order to obtain the best coverage
for your needs at a reasonable price. For instance, how much is
your vehicle worth?
Home-owner's Insurance: How to Save Money on Home
Insurance?
Home-owner's insurance should allow you to rebuild and
refurnish your home after a catastrophe and insulate you from
lawsuits if someone is injured on your property.
Guide To Homeowners Insurance: Different Types of Coverage
All insurance is definitely not created equal or, put another way,
you get what you pay for. The least costly homeowners
insurance will likely give you the least amount of coverage, and
vice versa.
Ways to Reduce Your Life Insurance Premium
While you can't do anything about two of the three main factors
affecting your insurance premium (age and family medical
history), there are steps you can take regarding the third -
lifestyle. You could lower your insurance premium if you:
Annuities & Pensions Insurance
Basically, an annuity is just a series or stream of payments.
“Annuity” comes from the Latin for “year”. In the context of life
insurance, it is a contract between you and an insurance
company under which the insurance company pays you money
for a stipulated period.
Things to Remember When Buying Health-care
It’s always much easier and much less complicated choosing
healthcare coverage from your employer.
Your Health Insurance; and what it should Cover
How to analyzed the costs that you pay under your health-care
insurance plan. In this article we’ll look at some of the basic
coverages which should be included in your policy.
Business Needs Business Insurance
Three Common Myths About Liability and
Understanding the Value of Insurance
Disability Income Insurance
Insurance?
If you were unable to work for an extended period
of time due to an injury or illness, how long would
you be able to pay your bills and meet your day-to-
day expenses? LEARN MORE...
Free information calls. Google 411 will get you information numbers free, so don't get
ripped off by your cell phone provider. When you need directory assistance, dial (800)
GOOG-411.
# Free telephone calls. Services like Skype and AIM let you communicate with other
users for free. Always calling a loved one long distance? If you both get copies of
something like Skype, you can talk all you want without paying a dime. And with a
service like Google Voice, you can get all of your cell phone calls free, too.
-----------------------
-The 33 Commandments of Wealth and Happiness--
Things Your Millionaire Neighbor Won’t Tell You
1. Thou shalt live like you’re going to die tomorrow, but invest like you’re going to live
forever.
The ease of making money in .. or other risk-based assets is inversely proportional to
your time horizon. In other words, making money over long periods of time is easy –
making money overnight is the flip of a coin.
Money is like a tree: Plant it properly, care for it every so often, then wait patiently.
Stare at a newly planted tree for 24 hours, and you’ll be convinced it’s not growing..
Patience is certainly a virtue when it comes to investing.
2. Thou shalt listen to thine own voice above all others.
My job as a consumer reporter has included listening to countless sad stories about
nice people being separated from their money by people who weren’t so nice. While
these stories run the gamut from real estate deals to working at home, they all start the
same way: with a promise of something that seems too good to be true.
If someone promises they can make you 3,000 percent in the stock market, they’re
either a fool for sharing that information or a liar. Why would you send money to either
one? When you hear someone promising a simple solution to a complex problem, stop
listening to them and start listening to your own inner voice.
You know the government’s not handing out free money for your small business. Stop
listening to commercials and start listening to yourself.
3. Thou shalt covet bad economic times.
Wealth is realized when the economy is booming, but that’s not when it’s created.
Wealth is created when times are bad, unemployment is high, problems are massive,
everybody’s freaking out, and there’s nothing but economic misery on the horizon.
4. 4. Thou shalt not work.
Put your cash to work and create some wealth.
5. Thou shalt not create debt.
I’m always getting questions about debt. “Should I borrow for this, that, or the other?”
“What’s an acceptable debt level?” “Is there such a thing as good debt?”
There’s way too much analysis and mystery around something that isn’t at all
mysterious. Paying interest is nothing more or less than giving someone else your
money in exchange for using theirs. Rule of thumb: To have as much money as
possible, avoid giving yours to other people.
Don’t ever borrow money because you want something you can’t afford. Borrow money
in only two circumstances: when your back is against the wall, or when what you’re
buying will increase in value by more than what you’re paying in interest.
Debt also affects you on a level that can’t be defined in dollars. When you owe money,
in a very real way you’re a slave to that lender until you pay it back. When you don’t,
you’re much more the master of your own destiny.
There are two ways to achieve financial freedom: Have so much money that you can’t
possibly spend it all (something exceedingly difficult to do) or don’t owe anybody
anything. Granted, since you still have to eat and put a roof over your head, living debt-
free doesn’t offer the same level of freedom as having more money than you can
possibly spend. But living debt-free isn’t a matter of luck or even hard work. It’s a
simple choice, available to everyone.
6. Thou shalt be frugal – but not miserly.
The key to accumulating more savings isn’t to spend less – it’s to spend less without
sacrificing your quality of life. If going out to dinner with your significant other is
something that you enjoy, not doing it may create a happier bank balance, but an
unhappier you – a trade-off that is neither worthwhile nor sustainable. Eating an
appetizer at home, then splitting an entree at the restaurant, however, maintains your
quality of life and fattens your bank account.
Finding ways to save is important, but avoiding deprivation is just as important. In
short, diets suck.
Whether they’re food-related or money-related, if they leave you feeling deprived and
unhappy, they’re not going to work. But there’s a difference between food diets and
dollar diets: It’s hard to lose weight without depriving yourself of the foods you love,
but it’s easy to reduce spending without depriving yourself of the things you love.
Cottage cheese isn’t a suitable substitute for steak, but a used car is a perfectly
acceptable substitute for a new one. And the list goes on: watching TV online rather
than paying for cable, buying generics when they’re just as good as name brands,
using house-swapping to get free lodging, downloading books from the library instead
of Amazon… No matter what you love, from physical possessions to travel, there are
ways to save without reducing your quality of life.
7. Thou shalt not regard possessions in terms of money, but time.
Almost every resource you have, from physical possessions to money, is renewable.
The amount of time you have on this planet, however, is finite. Once used, it can never
be replaced. So when you spend money – especially if you earned that money by doing
something you had to do instead of what you wanted to do – you’re spending your life.
This doesn’t mean that you should never spend money. If those clothes are all that
important to you, by all means, buy them. But if it’s really not going to make you that
much happier, don’t. Think of it this way: If you can live on $150 a day, every time you
forgo spending $150, you just get one day closer to financial independence.
8. Thou shalt consider opportunity cost.
This is related to the commandment above. Opportunity cost is an accounting term that
describes the cost of missing out on alternative uses for that money. For example,
when I said above that not spending $150 on clothes puts you $150 closer to
independence, that was a gross understatement. Because when you save $150,
investing those savings gives you the opportunity to have more savings. If you’re
earning 10 percent, $150 invested for 20 years will ultimately make you $1,000 richer.
9. Thou shalt Try to make it or fix it yourself.
Just because something’s available in a store doesn’t mean that’s the only place you
can buy it. Check out 6 Alternatives to Expensive Household Cleaners, Do-It-Yourself
Laundry Detergent and Household Products Vinegar Can Replace.
10. Thou shalt Sell before you buy.
Before you buy anything you want to think about business, Believe it or not ; the scret
of the rich is in commerce.
Make it a habit to first sell something you don’t. Your garage and closets are full of stuff
you no longer use. So before you go to the store or click that online “checkout” button,
stop. Put off the purchase – first, take some clothes to the consignment shop, or take a
picture of something you’re no longer using and put it online.. ebay, Craigslist, garage
sale etc.
As soon as it sells, apply the money to the purchase you were going to make. Now you’
ve saved on something you wanted, and gotten rid of something you didn’t.
11. Shall do just like a millionaire: He pays off his credit cards in full every month. He’
s smart enough to understand that if he can’t afford to pay cash for something, he can’t
afford it.
He never forgets that financial freedom is a state of mind that comes from being debt-
free. Best of all, it can be attained regardless of your income level.
Keep yourself busy.. being busy makes it difficult to spend what you already have.
12. Thou shalt pay yourself first.. Just like a millionaire;- He’s a big believer in paying
yourself first – in other words, setting aside money for your savings instead of
spending it on bills or entertainment. Paying yourself first is an essential tenet of
personal finance and a great way to build your savings and instill financial discipline.
Thou shalt plan ahead.. know that failing to plan is the same as planning to fail.
In a word, well plan everything you get to do .
Failing to plan is a plan to fail.
13. Thou shalt insure your stuffs and yourself..
realize that things happen, that’s why you’re a fool if you don’t insure your things &
yourself against risk.
Remember that the potential for bankruptcy is always just around the corner and can
be triggered from multiple sources: the death of the family’s key bread winner, divorce,
or disability that leads to a loss of work.
ripped off by your cell phone provider. When you need directory assistance, dial (800)
GOOG-411.
# Free telephone calls. Services like Skype and AIM let you communicate with other
users for free. Always calling a loved one long distance? If you both get copies of
something like Skype, you can talk all you want without paying a dime. And with a
service like Google Voice, you can get all of your cell phone calls free, too.
-----------------------
-The 33 Commandments of Wealth and Happiness--
Things Your Millionaire Neighbor Won’t Tell You
1. Thou shalt live like you’re going to die tomorrow, but invest like you’re going to live
forever.
The ease of making money in .. or other risk-based assets is inversely proportional to
your time horizon. In other words, making money over long periods of time is easy –
making money overnight is the flip of a coin.
Money is like a tree: Plant it properly, care for it every so often, then wait patiently.
Stare at a newly planted tree for 24 hours, and you’ll be convinced it’s not growing..
Patience is certainly a virtue when it comes to investing.
2. Thou shalt listen to thine own voice above all others.
My job as a consumer reporter has included listening to countless sad stories about
nice people being separated from their money by people who weren’t so nice. While
these stories run the gamut from real estate deals to working at home, they all start the
same way: with a promise of something that seems too good to be true.
If someone promises they can make you 3,000 percent in the stock market, they’re
either a fool for sharing that information or a liar. Why would you send money to either
one? When you hear someone promising a simple solution to a complex problem, stop
listening to them and start listening to your own inner voice.
You know the government’s not handing out free money for your small business. Stop
listening to commercials and start listening to yourself.
3. Thou shalt covet bad economic times.
Wealth is realized when the economy is booming, but that’s not when it’s created.
Wealth is created when times are bad, unemployment is high, problems are massive,
everybody’s freaking out, and there’s nothing but economic misery on the horizon.
4. 4. Thou shalt not work.
Put your cash to work and create some wealth.
5. Thou shalt not create debt.
I’m always getting questions about debt. “Should I borrow for this, that, or the other?”
“What’s an acceptable debt level?” “Is there such a thing as good debt?”
There’s way too much analysis and mystery around something that isn’t at all
mysterious. Paying interest is nothing more or less than giving someone else your
money in exchange for using theirs. Rule of thumb: To have as much money as
possible, avoid giving yours to other people.
Don’t ever borrow money because you want something you can’t afford. Borrow money
in only two circumstances: when your back is against the wall, or when what you’re
buying will increase in value by more than what you’re paying in interest.
Debt also affects you on a level that can’t be defined in dollars. When you owe money,
in a very real way you’re a slave to that lender until you pay it back. When you don’t,
you’re much more the master of your own destiny.
There are two ways to achieve financial freedom: Have so much money that you can’t
possibly spend it all (something exceedingly difficult to do) or don’t owe anybody
anything. Granted, since you still have to eat and put a roof over your head, living debt-
free doesn’t offer the same level of freedom as having more money than you can
possibly spend. But living debt-free isn’t a matter of luck or even hard work. It’s a
simple choice, available to everyone.
6. Thou shalt be frugal – but not miserly.
The key to accumulating more savings isn’t to spend less – it’s to spend less without
sacrificing your quality of life. If going out to dinner with your significant other is
something that you enjoy, not doing it may create a happier bank balance, but an
unhappier you – a trade-off that is neither worthwhile nor sustainable. Eating an
appetizer at home, then splitting an entree at the restaurant, however, maintains your
quality of life and fattens your bank account.
Finding ways to save is important, but avoiding deprivation is just as important. In
short, diets suck.
Whether they’re food-related or money-related, if they leave you feeling deprived and
unhappy, they’re not going to work. But there’s a difference between food diets and
dollar diets: It’s hard to lose weight without depriving yourself of the foods you love,
but it’s easy to reduce spending without depriving yourself of the things you love.
Cottage cheese isn’t a suitable substitute for steak, but a used car is a perfectly
acceptable substitute for a new one. And the list goes on: watching TV online rather
than paying for cable, buying generics when they’re just as good as name brands,
using house-swapping to get free lodging, downloading books from the library instead
of Amazon… No matter what you love, from physical possessions to travel, there are
ways to save without reducing your quality of life.
7. Thou shalt not regard possessions in terms of money, but time.
Almost every resource you have, from physical possessions to money, is renewable.
The amount of time you have on this planet, however, is finite. Once used, it can never
be replaced. So when you spend money – especially if you earned that money by doing
something you had to do instead of what you wanted to do – you’re spending your life.
This doesn’t mean that you should never spend money. If those clothes are all that
important to you, by all means, buy them. But if it’s really not going to make you that
much happier, don’t. Think of it this way: If you can live on $150 a day, every time you
forgo spending $150, you just get one day closer to financial independence.
8. Thou shalt consider opportunity cost.
This is related to the commandment above. Opportunity cost is an accounting term that
describes the cost of missing out on alternative uses for that money. For example,
when I said above that not spending $150 on clothes puts you $150 closer to
independence, that was a gross understatement. Because when you save $150,
investing those savings gives you the opportunity to have more savings. If you’re
earning 10 percent, $150 invested for 20 years will ultimately make you $1,000 richer.
9. Thou shalt Try to make it or fix it yourself.
Just because something’s available in a store doesn’t mean that’s the only place you
can buy it. Check out 6 Alternatives to Expensive Household Cleaners, Do-It-Yourself
Laundry Detergent and Household Products Vinegar Can Replace.
10. Thou shalt Sell before you buy.
Before you buy anything you want to think about business, Believe it or not ; the scret
of the rich is in commerce.
Make it a habit to first sell something you don’t. Your garage and closets are full of stuff
you no longer use. So before you go to the store or click that online “checkout” button,
stop. Put off the purchase – first, take some clothes to the consignment shop, or take a
picture of something you’re no longer using and put it online.. ebay, Craigslist, garage
sale etc.
As soon as it sells, apply the money to the purchase you were going to make. Now you’
ve saved on something you wanted, and gotten rid of something you didn’t.
11. Shall do just like a millionaire: He pays off his credit cards in full every month. He’
s smart enough to understand that if he can’t afford to pay cash for something, he can’t
afford it.
He never forgets that financial freedom is a state of mind that comes from being debt-
free. Best of all, it can be attained regardless of your income level.
Keep yourself busy.. being busy makes it difficult to spend what you already have.
12. Thou shalt pay yourself first.. Just like a millionaire;- He’s a big believer in paying
yourself first – in other words, setting aside money for your savings instead of
spending it on bills or entertainment. Paying yourself first is an essential tenet of
personal finance and a great way to build your savings and instill financial discipline.
Thou shalt plan ahead.. know that failing to plan is the same as planning to fail.
In a word, well plan everything you get to do .
Failing to plan is a plan to fail.
13. Thou shalt insure your stuffs and yourself..
realize that things happen, that’s why you’re a fool if you don’t insure your things &
yourself against risk.
Remember that the potential for bankruptcy is always just around the corner and can
be triggered from multiple sources: the death of the family’s key bread winner, divorce,
or disability that leads to a loss of work.
''Annuities Investment - Insurance Products
Banks and insurance companies offer a variety of ways to save money. Annuities have been one of the most popular
investment alternatives for a variety of reasons. This page offers essential annuity information.
An annuity is a contract between the buyer and an insurance company. In general, the insurance company promises
to do something with the buyer’s money. This page should serve as a general overview of annuities.
Banks sell a lot of annuities. To be more precise, a person at the bank acts as an agent and sells an annuity issued
by an insurance company. Sometimes the annuity is exactly what the customer needed. However, there are too
many stories about consumers walking out of the bank with a product they didn’t need.
ANNUITY BENEFICIARIES //
The Recipient of an Annuity, IRA, or Death Benefit
A beneficiary is a person who receives assets at a contract owner’s death. The contract owner picks the beneficiary
at opening the account, or later. There are two basic types of beneficiaries: primary beneficiaries and contingent
beneficiaries.
Why Have a Beneficiary
It’s important to select a beneficiary for a variety of assets. Most often, you find beneficiaries assigned for:
IRAs Life insurance policies
By assigning a beneficiary, a person makes it clear who should receive proceeds of any asset in the event of their
death. This eliminates any questions or disputes among family members and friends who might contend that the
deceased “would have wanted” another person to receive the assets.
Choosing a beneficiary also speeds things up for the chosen beneficiary because there is no need to wait for
probate processes. Instead, a named beneficiary can typically claim assets as soon as the decedent’s death is
documented. Moreover, a beneficiary designation usually supersedes (or overpowers) the instructions in a will – so
the will only applies to assets that do not have a named beneficiary.
There are two basic types of beneficiaries:
•Primary beneficiaries
•Contingent beneficiaries
Primary beneficiaries are the account owner’s first choice for a beneficiary. In the event of death, the first person
who can claim the assets is the primary beneficiary. Note that you can have multiple primary beneficiaries in some
cases. For example, you could have 3 primary beneficiaries, all of which receive 33.3% of assets.
Contingent beneficiaries are used as a backup. In the event that there are no living primary beneficiaries, the
contingent beneficiary claims the asset. A common example is this:
A husband picks his wife as the primary beneficiary. She would receive any assets at his death. However, the
husband and wife are killed together (at the same time) in an auto accident. Therefore, assets will go to a contingent
beneficiary.
Changing Beneficiaries
Keep in mind that most financial institutions will allow an account owner to change beneficiaries. To do so, you
usually complete a simple form. I recommend reviewing your beneficiary selections periodically. Things change in
life, and you’ll want to make sure you update beneficiary selections with marriages, divorces, births, and deaths.
ANUITIZE-ANUITIZATION
When you annuitize, you "flip the switch" and and start taking income from an annuity. Annuitizing is a serious
decision, but it's not required. This page covers what happens when you annuitize, and whether or not you should do
so.
Beneficiary Defined
A beneficiary is a person who receives assets at a contract owner’s death. The contract owner picks the beneficiary
at opening the account, or later. There are two basic types of beneficiaries: primary beneficiaries and contingent
beneficiaries.
Annuity Premiums Defined
Annuity premiums are the dollars paid into an annuity. In many cases, you can think of annuity premiums as if they
were account deposits. It’s a confusing word that gets used because an annuity is technically an insurance contract.
What is an Annuitant?
The annuitant is a person who’s lifespan will affect the annuity. The annuitant is important because of...
Annuity Contract Owner
From the annuity information glossary -- Contract Owner. Covers who a contract owner is and what a contract
owner can do.
Annuity Surrender Period
A surrender period is how long you must wait before taking money out of an annuity without penalty. An annuity
might not have a surrender period, or it may last for more than 10 years. You can take money out before the
surrender period, but you’ll generally pay a percentage of the amount you withdraw.
Immediate Annuity - Definition of Immediate Annuity
An immediate annuity makes income payments immediately, or very soon after purchase. You use an immediate
annuity when you want to start taking income as soon as possible.
Deferred Annuity - Definition of Deferred Annuity
Deferred annuities are annuities that do not make payments until
Banks and insurance companies offer a variety of ways to save money. Annuities have been one of the most popular
investment alternatives for a variety of reasons. This page offers essential annuity information.
An annuity is a contract between the buyer and an insurance company. In general, the insurance company promises
to do something with the buyer’s money. This page should serve as a general overview of annuities.
Banks sell a lot of annuities. To be more precise, a person at the bank acts as an agent and sells an annuity issued
by an insurance company. Sometimes the annuity is exactly what the customer needed. However, there are too
many stories about consumers walking out of the bank with a product they didn’t need.
ANNUITY BENEFICIARIES //
The Recipient of an Annuity, IRA, or Death Benefit
A beneficiary is a person who receives assets at a contract owner’s death. The contract owner picks the beneficiary
at opening the account, or later. There are two basic types of beneficiaries: primary beneficiaries and contingent
beneficiaries.
Why Have a Beneficiary
It’s important to select a beneficiary for a variety of assets. Most often, you find beneficiaries assigned for:
IRAs Life insurance policies
By assigning a beneficiary, a person makes it clear who should receive proceeds of any asset in the event of their
death. This eliminates any questions or disputes among family members and friends who might contend that the
deceased “would have wanted” another person to receive the assets.
Choosing a beneficiary also speeds things up for the chosen beneficiary because there is no need to wait for
probate processes. Instead, a named beneficiary can typically claim assets as soon as the decedent’s death is
documented. Moreover, a beneficiary designation usually supersedes (or overpowers) the instructions in a will – so
the will only applies to assets that do not have a named beneficiary.
There are two basic types of beneficiaries:
•Primary beneficiaries
•Contingent beneficiaries
Primary beneficiaries are the account owner’s first choice for a beneficiary. In the event of death, the first person
who can claim the assets is the primary beneficiary. Note that you can have multiple primary beneficiaries in some
cases. For example, you could have 3 primary beneficiaries, all of which receive 33.3% of assets.
Contingent beneficiaries are used as a backup. In the event that there are no living primary beneficiaries, the
contingent beneficiary claims the asset. A common example is this:
A husband picks his wife as the primary beneficiary. She would receive any assets at his death. However, the
husband and wife are killed together (at the same time) in an auto accident. Therefore, assets will go to a contingent
beneficiary.
Changing Beneficiaries
Keep in mind that most financial institutions will allow an account owner to change beneficiaries. To do so, you
usually complete a simple form. I recommend reviewing your beneficiary selections periodically. Things change in
life, and you’ll want to make sure you update beneficiary selections with marriages, divorces, births, and deaths.
ANUITIZE-ANUITIZATION
When you annuitize, you "flip the switch" and and start taking income from an annuity. Annuitizing is a serious
decision, but it's not required. This page covers what happens when you annuitize, and whether or not you should do
so.
Beneficiary Defined
A beneficiary is a person who receives assets at a contract owner’s death. The contract owner picks the beneficiary
at opening the account, or later. There are two basic types of beneficiaries: primary beneficiaries and contingent
beneficiaries.
Annuity Premiums Defined
Annuity premiums are the dollars paid into an annuity. In many cases, you can think of annuity premiums as if they
were account deposits. It’s a confusing word that gets used because an annuity is technically an insurance contract.
What is an Annuitant?
The annuitant is a person who’s lifespan will affect the annuity. The annuitant is important because of...
Annuity Contract Owner
From the annuity information glossary -- Contract Owner. Covers who a contract owner is and what a contract
owner can do.
Annuity Surrender Period
A surrender period is how long you must wait before taking money out of an annuity without penalty. An annuity
might not have a surrender period, or it may last for more than 10 years. You can take money out before the
surrender period, but you’ll generally pay a percentage of the amount you withdraw.
Immediate Annuity - Definition of Immediate Annuity
An immediate annuity makes income payments immediately, or very soon after purchase. You use an immediate
annuity when you want to start taking income as soon as possible.
Deferred Annuity - Definition of Deferred Annuity
Deferred annuities are annuities that do not make payments until
