Fixed Annuity Insurance - Things to Consider When Choosing the Best Annuity

By John C. Ryan

Most people have heard of fixed annuities. Often they won't try them because they're afraid they'll lose money. Their fear stems from lack of information on a fixed annuity. A fixed annuity is very similar to a CD at a bank but has additional features that make it far more attractive. Just like a bank, you have guarantees on interest rates.

Fixed annuities are also called immediate or deferred annuities. The difference lies in how you use the product. A person that wants a deferred annuity uses it more like a CD. They don't take payments from it. The immediate annuity converts to payments over a specific number of years, for a specific amount or payments that you'll never outlive. Some people like a guarantee that their heirs get any unused principal. That's available too.

The tax-deferred interest is a real plus for those saving for retirement, but as with any benefit has negatives also. If you put the money into a deferred fixed annuity and suddenly realize that you need funds, you have a ten percent penalty to pay on the growth you remove if you're not yet 59 . The tax laws do allow you to take substantial periodic payments penalty-free. The payments must last until you're 59 or at least for 5 years.

Just like a CD, you have a penalty if you remove the money before a specified time. Like most CD's, fixed annuities allow you to take interest at any time but there's a percentage penalty if you take the initial deposit. The penalty is normally on a sliding scale that reduces as the contract gets older. It varies, but normally averages between four and or five percent. While the length of the surrender period varies, again the average is around seven years. Watch out for contracts that have a lifetime surrender charge unless you annuitize.

Today many companies offer exemptions from the surrender charge if you only want interest, just like a bank CD, but also allow you to invade the principal for amounts up to ten percent each year. This makes it superior to a CD. If you find yourself in an emergency, you'll have access to funds without any penalty. It allows you to keep less money in a passbook savings for emergency use.

Even though you may allow your CD to roll over, you still have to pay taxes on any interest you earned. This isn't true for an annuity. As long as you don't remove the money from the contract, you don't have to pay taxes on the interest. Even if you want to take some of the principal and leave the interest in the contract, the IRS looks differently at your distribution. Annuity tax laws use LIFO rules. That means, last in, first out. Interest is always the last thing into the contract so the IRS considers the initial money you take as interest until you reach the amount you originally invested.

Immediate annuities have different tax rules. If you use the fixed annuity as a deferred annuity and then annuitize it later, it follows these rules also. Part of the payment each year is principal and part of it is interest, according to the IRS regulations.

To calculate the amount you pay in taxes each year you use an exclusion ratio. The exclusion ration is how much you exclude from that contract's income. To find it, you need to know three things; your life expectancy, your payment and the amount you invested. You simply multiply your payment times the number of years for life expectancy. If you receive $800 a month and have a life expectancy of 22 years, you'll get approximately $211,200 over the lifetime of payments if you collect in full. If your initial investment was $100,000, you divide that number by 211,200 and get an exclusion rate of 47 percent. In this case, you'd only pay taxes on 53 percent of your annual income from the fixed annuity.

People often select fixed annuities because they either love the idea that they'll never outlive their money, find it a useful tax-planning tool or simply like the high rate and ease of use. Many financial planners suggest that individuals divide their funds into several different vehicles for higher returns and a safer investment strategy. Often seniors fin that a fixed annuity is a great way of establishing a base income in addition to social security or their pension. They know they'll never run out of money, have a higher payment than an interest payment and can allow other funds to grow at higher rates of return. - 23305

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John C. Ryan disperses his knowledge on how to find the best annuity for you. Want to learn more?? Come see us, for more advice on fixed annuities .

Forex Tips That Are Gold

By Anthony McDonald

For forex tips there are a few that I have come up with that would help out the new trader. Trying to make a trade in the forex market without doing your market research is like gambling. A gambler makes a spontaneous move for the fun of game. Forex is different because if you gamble, you lose real money. It isn't fun when that happens, never make a trade without studying the market.

One great forex tips the trend. The trend was not made for no purpose, use it to your benefit. When trading along side the trend it is a sure way to maximize your possibility of winning a trade. The trend is your friend is not said for no reason. Here is a simple rule to follow: when the trend is down you want to sell not but and when the trend is up you want to buy not sell.

Forex tips that are crucial are proper money management. When trading never put at risk more than approximately 3-4% of your trading account. What separates the successful traders from the less successful is the ability to survive bad market conditions. You cannot win all trades, but you can be prepared to lose some on the way.

This Forex tips important. When you are doing your trading separate your self from emotions and trade in a calm state. The last thing a trader should be doing is trading when in a rough mood, key is to be calm. To add to that, it is a good habit to pick a time frame that is good for you where you can focus on your trading.

Best forex tips for the day; know your risk in a trade. Do not go in a trade if the risk is greater than the reward. Making a rush into a trade is never a good idea. One of the best things I have ever added to my trading was this one method that the big traders have been using. This one method has doubled my forex profits, it is no wonder they tried to keep this hidden for so long! - 23305

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If your trades aren't raking the money you need, you need to check out the "Big Wigs" Forex Tips that work! Stop letting the "Big Wigs" feed you BS, take action and find out their untold secrets and Forex Tips today!

Success Through A Good Currency Trading Education!

By David Langley

Becoming a professional in the market requires a top quality currency trading education. The market is complex and highly competitive. The more knowledge you have the more confidence you will have when you actually start trading. Your competition is certainly prepared so you must do the work before you start to make sure you are prepared to.

There are many books written that talk about currency trading. To get a good currency trading education build a strong library that you can use when you have questions. You may want to ask some of the professional traders in the market what books they would recommend. Look for publications that not only explain the mechanics of the market, but also what moves currency prices. Update your library when needed.

Trading courses are recommended by most experienced traders. Find one that is taught by and experienced currency trader. You may find the best classes by asking for a recommendation from other traders. Classes can be very helpful whether online are in a classroom setting.

Using the proper tools to help you make accurate trade decisions, is an important ingredient to making profits in the currency market. Technical analysis is one of the best tools to use. Since most traders are familiar with technical analysis and most use it, you will be at a distinct disadvantage if you don't understand it and use it also. Charts can help you see trends as they develop so that you can take action to profit from them. If you become good at using charts you will be able to see when a trend is about to end. This will allow you to take appropriate measures to protect your profits.

Fundamental analysis is another tool used by many traders. Fundamentals refer to market conditions that have an impact on currency prices. Interest rate changes or changes in the rate of inflation will affect price movements. Budget deficits and budget surpluses cause currency values to move up and down. Political stability within a country should be taken into consideration. Using fundamental factors in combination with charting and technical analysis is likely the best way to make trading decisions.

The old adage "practice makes perfect" holds true in currency trading just as it does in most other areas. You should open your trading account with a broker who will allow you to use a demo account to practice trading for a period of time. This will give you time to develop a trading discipline and correct some of your mistakes. Your trading instincts will be more polished as well. If a broker will not allow you to practice real-time trading, you need to find a new broker. Don't pass up the opportunity to sharpen your skills.

Keeping your trading skills polished is a critical issue for maintaining a long term career in the currency market. Continual self-study is the best way to do this. Keep up with industry publications to continue to build your knowledge.

Getting a good currency trading education is the only way to become a successful and profitable trader. Put all your efforts in to getting it before you start your trading career. - 23305

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The KEY to getting a good currency trading education is an excellent currency trading tutorial!

Who Told You Not To Invest In Forex Banking?

By Cedric Welsch

Many individuals trying to make profits with the forex trading business seem to not be really familiar yet with forex banking. One thing you must always put in mind if you are in the trading business is that currency values tend to change a lot and instantly. It is a wise move to make if you go thinking of alternative options that can support your trading business. One of which is the idea of plunging into the game of foreign currency banking. However, you need to study about it deeply.

You can relate this business transaction just like registering a new account in the bank. However, unlike a regular bank account, this type of banking transaction can produce much bigger returns. This alternative never fails most especially when you have already incurred high values of currencies since disposing them all at once should not be an option. Upon keeping your currencies in the bank, you should be expecting rapid growth in their interests and within their respective currency values. The interest rates may vary depending on which bank you choose.

Putting your currencies in the bank offers you a much more productive use for your time as they earn interests on their own. Getting these currencies in the bank also allows you to do transactions much easy and convenient at any given time. The exchange rates for your currencies are also dependent on your bank, so this gives you another advantage as it allows you to be more in control. The following are some helpful tips for you in order to help you with this process:

1. Make sure you pick the bank with best rates - You cannot deny the fact that the bank's interest rate is the first thing you should always consider. Before deciding on any other steps to make, you have to be very specific first with this one step. And also, be keen to learn about a bank's policy in opening an account particularly with the involved amounts, this is so you can make an initial assessment to the interests you should be expecting.

2. Invest your unpopular currencies - It might not be that wise to invest your dollars and euros in foreign currency banking unless of course you have plenty, that would be considered as a surplus. This is because you might also incur a less than satisfactory credit history especially when you often hit the minimum limit on your account because you are accommodating too many transactions from your popular currencies. So the best option for this strategy would be the ones that you don't get to trade quite often.

3. Try other alternatives on depositing - Signing up for a time deposit in foreign currency banking could be a nice decision to implement especially if you have in your possession a good amount of assets or funds. No doubt, choosing a time deposit account over a regular account can produce much greater returns in the long run. All you have to be very specific with are the account limits particularly for time deposits since they shed much bigger interest rates. - 23305

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You don't need to keep worrying about sudden market changes when you can always get the latest forex news anytime. A good habit of staying tuned with forex scam review forums & sites will save you lots of money.

Getting the Price Right for Success in Real Estate Sales

By Jason Myers

Real estate investing normally entails selling at some point. This price setting is what will identify how fast the house will sell. However how do you get this cost right?

For most home sellers, enlisting of the correct price is dependent on how much they think the house is worth. But as it has been determined with this method, the odds of making it right are very small to zero. Sure, the laws of probability asuures you a chance in making it right by pure approximation but that just about never occurs.

For the best price, you need to do a single thing, and that is a house inspection. You need to hire a professional to make the value estimate of the house and provide details to you with it. That will offer you the margin of pricing the house. These people are so accurate in their transactions and with all considerations being made, as with the current trends in the real estate market, they will deliver a nearly precise figure of just how much your property is valued inside and out.

There are a number of situations where you might not be joyful with the amount, but you are more than welcome to do upgrades that will elevate the price to a higher number that you can be contented with. You may invest in renovating the house, redoing the paint jobs and swapping a thing or two, up to the time you feel like the overall cost has appreciated.

The next thing you can do is to wait till the house selling season arrives, but with the irregular financial rotations, you would not be guaranteed of that actually occurring.

When marketing your house, you must not even think about competing with foreclosed homes since their costs are much lower and efforts to match them would only bring about loss. - 23305

About the Author:

As the housing crisis bottoms we'll have plenty of one in a lifetime real estate investing opportunities. You may also want to read our articles about home refinancing so you'll have funds to invest!