What exactly is an annuity? - table annuity generator
I tried to read the definitions, but what I'm doing my homework, finance companies, but can not say yet if I use the table of pension and when you use the current value of a dollar table.
Thursday, December 3, 2009
Table Annuity Generator What Exactly Is An Annuity?
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and life. The advantage of this type of pension that the pensioner has a guaranteed income for life, whereas if the retirees were instead to withdraw money regularly on account of retirement, the pensioner is dead without money before retirement or who have to spend less, while pensioners alive.
Another type of annuity is a combination of savings for retirement and the payment plan for retirement: the pensioner is a regular contributor to the pension up to a certain point, then receive regular payments to pensioners to die. Sometimes there is a part of life added so that if the pensioner dies before the annuity payments, the recipient receives a lump sum or annuity payments.
There are two phases to an annuity, a phase in which the customer deposits and accumulates money into an account (the deferral) phase and the annuity, the insurance company in the income payments until the death of the customer ( "rentiers") named in the contract . It is possible that the structure of a pensionContract, so that only the annuity phase, the contract for an immediate revision of the pension. Deferred lease contracts with a deferral phase are similar to bank CDs and have a growth phase, prior to the distribution of income and will be called. The new incarnation is the product down, shares of fixed or indexed to pure life insurance.
These contracts provide an income for retirement or a series of payments in the settlement of further injury (for example) a structured settlement. Some annuities (called "common life" or "reverse" annuities) continue to pay a second person (eg, the "beneficiary") dies after the pensioner, to the death of the person concerned. (For example, a pension can be structured to make payments to a proposal of marriage, no more payments in the death of the other spouse.)
Annuities that payments of fixed amounts or in amounts increase to a fixed percentage to be as fixed-income securities. Variable annuities, by disadvantages, pay different amounts depending on the iINVESTMENT performance of a particular set of investments, primarily bonds and mutual fund shares.
Variable annuities are used for different purposes. A common objective is deferral of the recognition of taxable income. Money in a variable annuity grows on a tax deferred basis, so that taxes on investment gains are not due until you withdraw. Variable annuities offer a variety of funds ( "subaccounts" in industry parlance) from different fund managers. This gives the investor the ability to move between subaccounts without additional fees or charges sales.
The pension is a series of equal payments.
The present value is the value of a future sum. A dollar today is worth more than one U.S. dollars will not be until next year, so that one U.S. dollars to pay for next year is worth less than a dollar today, because you can invest and grow with interest over the period.
This is a contract with an insurance company. Basically, you invest your money now either regular payments or a lump sum after the money is refunded to you through a series of payments.
Since pensions are treated as ordinary income, you pay taxes on the ordinary income, as opposed to dividends or capital gains.
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