Discover The Best Way To Deal With Annuity Taxes

Annuity taxes can and indeed should play a significant role in determining which investment is right for you.

It does have to be stressed, of course, that tax relief is never the most important consideration, because if you make a bad investment and receive no income at all, it will come as absolutely no consolation that you are not paying any tax.

The profitability of the investment vehicle must be the most important consideration. Only when this profitability is guaranteed, or at least highly likely, can you really afford to be worrying about taxation.

Fixed annuities are becoming more popular than ever, as more people seek to protect their wealth and investment against erosion by inflation, and against confiscatory taxation. A bank certificate of deposit, which can be a very effective short term investment, still has the problem of being taxed on annual income.

This unfortunate feature has the effect of dissipating the money which would otherwise have accrued using compound interest. It is for this reason that certificates of deposit are rarely considered as suitable investments for a retirement fund, besides the fact that these days they pay next to nothing in interest.

It does have to be mentioned, though, that fixed annuities can have a sting in the tail in certain situations. If part of your aim is to pass money on to your children or other heirs, you need to think about the impact of the lack of the step up in basis rule. This can mean that a very large percentage of the money you have lovingly built up over the years using as deferred fixed annuity ends up in government hands after all. The money put into a fixed annuity is designed to be used for your retirement, so make sure that that is the primary consideration.

The alternative to this strategy, if you want to find another investment which is more friendly when it comes to avoiding inheritance taxes, is to take out a life insurance annuity or structured settlement payout that someone else is receiving from an insurance company due to an injury or accident claim. This policy operates as closely as possible to the way a fixed annuity would operate. If you know that you will only use a small percentage of your accumulated wealth during your retirement years, and that most of it will go to your heirs or beneficiaries, then this is likely to be the best way for you to go.

In summary, the best way of approaching the problem of annuity taxes depends on your main purpose in creating your savings plan in the first place. If you are intending to use the annuity for its intended purpose, which is to accumulate savings for your retirement, then you will do best by sticking with the tried and trusted system. If, on the other hand, you know that you will be leaving most of the money to your heirs, go for a life assurance solution instead, or possible a combination of both. Take the appropriate advice before you finally decide how to handle annuity taxes.






 

Annuities News:

 

JG Wentworth Co (OTCMKTS:JGWE) Is A Speculative Play - Insider Financial

Insider Financial

JG Wentworth Co (OTCMKTS:JGWE) Is A Speculative Play
Insider Financial
The Structured Settlement Payments segment offers liquidity to its customers through purchasing structured settlement payments that include financial tool used by insurance companies to settle claims; purchasing annuity payments at a discount to the .
Special Situations M. Trishield Sells 2311589 Shares of JG Wentworth Co. (JGWE) StockTrueBlueTribune

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Critical Review: JG Wentworth (JGW) and JetPay Corporation (JTPY . - Dispatch Tribunal

Critical Review: JG Wentworth (JGW) and JetPay Corporation (JTPY .
Dispatch Tribunal
JG Wentworth (NYSE: JGW) and JetPay Corporation (NASDAQ:JTPY) are both small-cap finance companies, but which is the better business? We will compare .

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Litigation Against Big Pharma in the Opioid Crisis - Legal Talk Network

Litigation Against Big Pharma in the Opioid Crisis
Legal Talk Network
. T. Boffetti, Senior Assistant Attorney General in New Hampshire, including litigation against Purdue Pharma, the maker of OxyContin, and the fight against the opioid epidemic. Visit Ringler to contact a consultant in your area about structured .

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Long Ridge Equity invests in Ametros Financial - PE Hub - PE Hub (blog)

Long Ridge Equity invests in Ametros Financial - PE Hub
PE Hub (blog)
Long Ridge Equity Partners has invested in Ametros Financial Corp. Financial terms weren't announced. Clarion Capital Partners LLC will remain an investor.

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JG Wentworth (JGW) and JetPay Corporation (JTPY) Head to Head Comparison - Dispatch Tribunal

JG Wentworth (JGW) and JetPay Corporation (JTPY) Head to Head Comparison
Dispatch Tribunal
The Company conducts its operations through two segments: Structured Settlements and Annuity Purchasing (Structured Settlements), and Home Lending. The Structured Settlements segment provides liquidity to individuals with various financial assets, such .

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Reports Third Quarter 2017 Results - Business Wire (press release)

Street Register

Reports Third Quarter 2017 Results
Business Wire (press release)
The increase was due primarily to the $48.7 million increase in revenues generated by the Structured Settlement Payments segment's ("Structured Settlements") revenue driven principally by a $38.8 million favorable change in unrealized gains (losses) on .
JG Wentworth's (JGWE) CEO Stewart Stockdale on Q3 2017 Results - Earnings Call TranscriptSeeking Alpha
JG Wentworth Co (OTCMKTS:JGWE) Shedding Market Cap by the MinuteThe Oracle Dispatch
JG Wentworth Co. (OTCMKTS:JGWE) to Shore Up its BooksStreet Register

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Reviewing Emergent Capital (EMGC) and Fidelity and Guaranty Life (FGL) - The Ledger Gazette

Reviewing Emergent Capital (EMGC) and Fidelity and Guaranty Life (FGL)
The Ledger Gazette
The Company provides customized liquidity solutions to owners of illiquid financial assets in two markets, which include life finance and structured settlements. The Company focuses on lending to outright purchases of portfolios, to tertiary trades, as .

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