How The Split Annuity Can Combine The Benefits Of Immediate And Deferred Products

A split annuity can help you to combine the benefits of different annuity products, and to reduce the risk involved to the lowest possible level. It is important to understand right at the start that annuities are designed to be the most secure of financial instruments, and that they are not meant to be high gain speculative vehicles. You need to take some time to decide whether investing in annuities as a whole is right for you, before you can decide whether or not to split the annuity.

Annuities are becoming increasingly popular, largely due to the fact that they can replace the pensions and other financial instruments which are becoming ever less reliable. As the average age of the population increases, so the burden on pension funds becomes ever greater. Combine this with the fact that inflation continues to erode the value of saved money, and you can easily see why the fixed annuity has become such a popular option. Before you rush in, though, there are several important facts you need to consider.

A split annuity will combine the strength and solidity of a single premium deferred annuity, which will grow with time in a very tax efficient manner, and a single premium immediate annuity, which begins paying you a monthly income straight away. The vast majority of investments are taxed on an annual basis. Everything which the investment has earned in a particular tax year will become liable for taxation at the end of that year. Annuities confer the great benefit of being able to defer taxation until the money is taken out again during retirement.

The idea behind this combination of investments is that the immediate annuity provides this income right from the start of the investment program, while the standard deferred annuity replaces it and keeps the principal intact. Obviously, this is an over-simplification, and nothing is quite this simple in practice. There is a continual need to reevaluate interest rates to make sure everything is working as it should. It is also important to remember that inflation will still erode the spending power of any money you are able to withdraw using this system.

One of the most effective ways of using a split annuity is in providing the income to meet mortgage payments. This is because mortgage payments are relatively easy to calculate into the future, and are less subject to wild fluctuation than many other prices. The annuity can be used to pay the mortgage over time, while the equity continues to build in the property as the years go by. Done properly, this split annuity investment can result in a retiree having their home bought and paid for, and also a fixed monthly income as well. There are many advantages to this use of the split annuity.






 

Annuities News:

 

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Investors sentiment decreased to 0.83 in Q3 2017. Its down 0.03, from 0.86 in 2017Q2. It fall, as 3 investors sold Asta Funding, Inc. shares while 3 reduced.
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Appeal from partial summary judgment in which court made a declaration relating to the interpretation of a section . - Lexology

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Lexology
A Florida lawyer and customer of the insured ran a Ponzi scheme involving the fraudulent sale of nonEUR‘existing interests in structured settlements supposedly handled by his law firm. After the scheme collapsed, about 19 investor groups sued the insured .

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He was fined $50 in traffic court but couldn't seem to let it go. Then a friend allegedly provided a police officer . - Washington Post

Washington Post

He was fined $50 in traffic court but couldn't seem to let it go. Then a friend allegedly provided a police officer .
Washington Post
Kudel said that because of the allegations, his client is no longer working for Reliance Funding, a structured-settlement company based in Chevy Chase, Md. Representatives for the firm could not be reached for comment Monday. Kudel declined to discuss .

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Law360 Names Two Outten & Golden 'Practice Groups of the Year . - PR Newswire (press release)

PR Newswire (press release)

Law360 Names Two Outten & Golden 'Practice Groups of the Year .
PR Newswire (press release)
NEW YORK, Feb. 2, 2018 /PRNewswire/ -- Law360 Names Two Outten & Golden 'Practice Groups of the Year' for 2017. Outten & Golden LLP has been recognized.

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Delegate sued over structured settlement sales - Virginia Lawyers Weekly

Delegate sued over structured settlement sales
Virginia Lawyers Weekly
A Virginia lawyer-legislator is named in a federal lawsuit claiming he failed to follow rules protecting beneficiaries of structured settlements. As an attorney, Del. Steve Heretick represents companies that buy structured settlement benefits from .

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EURœOut of sightEUR EUR Second edition - MÃdecins Sans Frontières (MSF) International

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The increase in marginalisation and forced evictions causes the fragmentation of informal settlements and the establishment of small groups of migrants living in increasingly hidden places, where they are not only invisible, but also face deplorable .

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Third-Party Releases in Chapter 11 Plans - Lexology

Third-Party Releases in Chapter 11 Plans
Lexology
U.S. Bankruptcy Judge Kevin Gross sitting in Delaware recently approved J.G. Wentworth's (the EURœDebtor'sEUR) Chapter 11 plan after overruling an objection from the U.S. Trustee regarding third-party releases. The Debtor's Chapter 11 reorganization plan .

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Intellectual Property is Now an Ordinary Income Asset, Doubling its Tax Cost at Sale - Markets Insider

Intellectual Property is Now an Ordinary Income Asset, Doubling its Tax Cost at Sale
Markets Insider
"With this change, the capacity to sell your business and not be clear about your tax cost dramatically increases," said James Smyth, Executive Director of Custom Structured Settlements, LLC. Added Arthur Jensen, Senior Tax Director of Custom .

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DRI's Mission and Settlement Planning from the Defense Perspective - Legal Talk Network

Legal Talk Network

DRI's Mission and Settlement Planning from the Defense Perspective
Legal Talk Network
. in the Northeast.. DRI, the Voice of the Defense Bar is the leading organization of civil defense attorneys and in-house counsel. On Ringler Radio, host Larry Cohen and colleague, Gayle S. Christen, welcome President-elect of DRI, Attorney Toyja .

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