Plan Your Retirement Income With Single Premium Deferred Annuity

A single premium deferred annuity is one of the most solid and dependable investments you can make. It is a way of sheltering your investment against taxation while it builds towards your retirement, allowing you the possibility of replacing some of the pension income which is now being eroded. Pensions are becoming ever less stable as the years go by, with inflation reducing their spending power, and an increase in the aged population meaning there are fewer funds to go round. It makes sense to take control of the situation and plan your own retirement if you are able to do so.

The tax break is the great advantage offered by the single premium deferred annuity, but it is important not to over concentrate on this. A tax efficient investment is useless unless it can generate enough income for tax to be paid on in the first place. Annuities have the great benefit of being guaranteed, and are a great starting point for your overall retirement plans. Combining them with other instruments can give you an even better chance of having your retirement income needs completely met.

One of the most common ways of achieving this is by the use of a split annuity, combining a standard deferred annuity with an immediate one. The idea behind this is that the immediate annuity provides an ongoing income, while the deferred annuity continues to grow in the background. If the figures can be worked out so that the deferred annuity keeps refreshing the principal over time, the income level can be maintained.

This system can be especially useful in meeting mortgage payments. Although there is unlikely to be any income left over during the time the mortgage is being paid, the payments should continue to be met. Mortgage payments are relatively easy to calculate, and they vary little over time in comparison with other investments. By the time you reach retirement, you could be in a very good situation. If the mortgage payments have been met and the loan paid off, you could own your home outright. You could also have a monthly income from the payments which are longer needed to pay the mortgage.

There is just one hazard you need to watch out for with a single premium deferred annuity, and that is when it comes to passing on your wealth to your heirs. Annuities are treated differently from other investments, and they are harshly treated for inheritance tax. The annuity works best when it is providing an income for your retirement. If your goal is to pass wealth to your children or other heirs, you will be better off looking at life assurance policies which act in a similar way to annuities. For retirement income, though, nothing beats the solidity of a single premium deferred annuity.






 

Annuities News:

 

Novation Settlement Solutions Pledges $250000 in Advances to Victims Affected by Hurricane Harvey and Impending . - Benzinga

Novation Settlement Solutions Pledges $250000 in Advances to Victims Affected by Hurricane Harvey and Impending .
Benzinga
Florida-based Novation Settlement Solutions is pledging $250,000 in structured settlement and annuity advances to qualifying applicants affected by either Hurricane Harvey or those in its home state of Florida needing assistance in preparation of .

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Comparing SLM Corporation (NASDAQ:SLM) & JG Wentworth (JGW) - The Ledger Gazette

BZ Weekly

Comparing SLM Corporation (NASDAQ:SLM) & JG Wentworth (JGW)
The Ledger Gazette
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 .
Slm Corporation - SLM - Stock Price Today - ZacksZacks Investment Research

all 23 news articles »
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Analyzing JG Wentworth (JGW) and SLM Corporation (SLM) - The Ledger Gazette

Analyzing JG Wentworth (JGW) and SLM Corporation (SLM)
The Ledger Gazette
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 .

and more »
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Ascension Parish Civil Court Cases for Aug. 14-18, 2017 - The Advocate

Ascension Parish Civil Court Cases for Aug. 14-18, 2017
The Advocate
Redemption Financial Services LLC dba National Auto Acceptance v. Amy R. Barze, executory judgment. Peachtree Settlement Funding LLC and Donyale Day, structured settlement. Bank of America NA v. Eric C. Schmid, open account. Bakercorp Corp. v.

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Magomed Abdusalamov receives $22M injury settlement from New York State - ESPN

ESPN

Magomed Abdusalamov receives $22M injury settlement from New York State
ESPN
The state is to pay $10 million into structured settlement annuities for Abdusalamov, $10 million into an account overseen by his court-appointed property guardian (to handle financial obligations, including legal fees) and $2 million to his wife for .

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Ontario Disability Support Program Changes Help Abuse Survivors - Lexology (registration)

Ontario Disability Support Program Changes Help Abuse Survivors
Lexology (registration)
Sometimes, amounts awarded for compensation or damages are used to purchase structured settlements which provide the plaintiff with an income stream. Structured settlements can only be purchased by an insurance company from a federally regulated life .

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Financial Contrast: JG Wentworth (JGW) & SLM Corporation (NASDAQ:SLM) - The Ledger Gazette

Financial Contrast: JG Wentworth (JGW) & SLM Corporation (NASDAQ:SLM)
The Ledger Gazette
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 .

and more »
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The CFPB, Often a Winner in Court, Hit a Rough Patch This Summer - The National Law Journal (registration)

The National Law Journal (registration)

The CFPB, Often a Winner in Court, Hit a Rough Patch This Summer
The National Law Journal (registration)
The CFPB this week announced a settlement that requires National Collegiate Student Loan Trusts, one of the nation's largest owners of private student loan debt, to pay at least $19.1 million to resolve the allegations the company filed illegal .

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