Annuity Income Taxation

As more baby boomers consider fixed annuities to protect retirement income, the issue of taxation of annuity income becomes an important factor. Because immediate annuity strategies are something we will be studying for our retirement, I thought now would be a good time to look at the tax issues. Read more

Life Annuity Calculators: Finding the Best Online

Life annuities for retirement income, particularly fixed immediate annuities, continue to intrigue me. Every day it seems that one or members of the insurance industry comes out with a new and different annuity product for baby boomers to consider.

My preference is to learn as much about investment and income products on my own, without facing pressure applied by people trying to sell me something. I have nothing against folks who sell annuities in general. I just feel that I can make a better decision about relative costs and benefits associated with financial products if I gather many of the facts on my own. Read more

Fixed and Variable Annuities More Attractive to Baby Boomers

I read a report this week that sales of fixed annuities in 2008 were up 60% in 2008 over 2007.  In the last quarter of 2008 alone, fixed annuity sales were $34.1 billion, up 90% from a year earlier, according to data from the Beacon Research Publications Inc.

Meanwhile, indexed annuities increased 12% to $7.2 billion, and immediate annuities sales were $2.4 billion, up 22% from 2007.

This tells me that baby boomers are increasingly turning away from the ups and downs of the stock market.  Instead they are looking at ways to use their retirement funds to purchase a secure income for life. Read more

Fixed Annuities and Financial Risk

This baby boomer and no doubt many others are giving more consideration to fixed annuities as alternative investment vehicles.  Fear of more market losses and a need for a reliable source of retirement income is driving this.
A fixed annuity is a contract in which you surrender a lump sum of money to an insurance company in exchange for a guaranteed monthly income. Read more