Define an annuity savings plan?

Answers:1   |   LastUpdateAt:2012-08-22 14:33:02  

Question
macaw
Asked at 2012-08-07 10:08:02
My mother is 96 years old , is an important record , he has to cash , the bank wants a 3% early withdrawal , but he paid an amount necessary until the CD matures in one month, so you do not have to charge on the cd.
the bank says they can convert your CD to an annuity at expiration next month. the bank says it can be able to give 4.5% interest ?

what is an annuity.
financial instrument is good for a woman 96 years old ?
Answer1HanuAnswered at 2012-08-07 15:58:03
I would suggest to go with an immediate annuity secured on it. Deferred annuities are good, but I think she needs to lock your money and wait for it to grow. I'm sure you can get much more immediate annuity with guaranteed years since she's already 96. And what kind of fish sounds when they say "may be able to give a 4.5%" instead of saying "you can get a 4.5%" could have calculated the interest rate compared to other products you need to be taxed each year.

deferred annuity is almost like a CD, but an insurance company. This is a retirement plan that you put money in. lump sum tax deferred, guaranteed original, with 10% of the liquidity of each year. And you can configure a recipient of it, so it does not cause problems in the future. Each states guarantee certain dollar amount for annuities and life insurance, New York $ 500,000 guarantee. FDIC only $ 250,000 at this time so it could help protect your money. It also ensures the original amount, so that unlike CD if you cancel 2 days after you enroll, you receive all the money as opposed to D, which can give an amount about 97%.

immediate annuity is a retirement plan to generate income rather than growth. Each year / month, the insurance company pays a certain amount of dollars guaranteed until death. There are many safeguards to it.

As an insurance agent will recommend an immediate annuity. Make sure you get a guaranteed in 20-30 years, however, as it is now 96. You'll get more than you invest with many of the guarantees, and the amount of payment is guaranteed until she dies. With the guarantee, which would be guaranteed annual payment times the number of years guaranteed, even if she dies the next day. I hope you stay healthy until 150 and get all the money that the annuity can though.

A little confusing with all these guarantees, but I hope this helps.

I can give more information if you are in New York, because I'm not working in other states. You can e-mail so that the banker says that if you want a second opinion. Also a good idea to post more questions about what the banker says.
Answer2?, hard to Him. -Answered at 2012-08-22 14:33:02
An annuity is a lump sum investment where your mother would be able to earn an income for the rest of his life . On the basis of age, should atleast be able to obtain 6%. Within the annuity that would decide if the money is in cash or in what proportion was reversed . For the return of 6 percent most insurance companies will want at least 60 % invested . If you are in the money market rate as best she can get is probably 2 percent , not much better than a CD. There are some great benefits of an annuity , however , is a bit confusing . MedlinePlus MedlinePlus For example , say your mom 100k invested in the annuity , which then receive 6,000 per year or $ 500 per month. If the value is increased to 200k say that next year, if she died while reinforcing the annuity was then the beneficiary would receive the highest anniversary value or the quarterly value since some insurance companies now calculated on a quarterly basis . There are many benefits like this that you can add to your pension for a nominal fee . MedlinePlus MedlinePlus Benefits of an annuity to his mother is that she is guaranteed an income for the rest of her life and she is guaranteed to not get back less than you invested , either on monthly or as a death benefit to ther beneficiaries . Make sure someone is with her while makiing this decision as I said before it is little confusing investment and can be expensive to runners (protection / guarantees) to add .
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