Guam Annuity as Consideration for Transfer of Securities

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An annuity is a life insurance company contract that pays periodic income benefits for a specific period of time or over the course of the annuitant's lifetime. These payments can be made annually, quarterly or monthly.
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FAQ

The advantages of indexed annuities include the potential to earn more interest and the premium protection they offer. The disadvantages include higher fees and commissions and caps on gains.

Jabulani, You can transfer your retirement annuity (or RA, which is a pre-retirement savings product) into a living annuity (a post-retirement investment and income-distribution product) when you choose to retire from your retirement annuity (minimum age 55).

In general, annuities have the following features.Tax deferral on investment earnings.Protection from creditors.An array of investment options.Taxfree transfers among investment options.Lifetime income.Benefits to heirs.

You Can Lose Money While indexed annuities are considered more conservative than variable annuitiesand make a selling point of their guaranteed returnthey nonetheless carry risks. One is if you need to get out of the contract early because of a financial emergency or other pressing need.

Annuity is a contract in between the insurance company (i.e., the party granting the annuity) and the annuitant (receiver of annuity) whereby in consideration of the payment of a purchase price by the annuitant, the other party (i.e., the insurance company) undertakes to make a yearly or annual payment to the annuitant

In regards to fixed equity indexed annuities, Ramsey says that no one should purchase them and those who want to invest in an index should invest directly in that index.

Suitability Information Gathered by an InsurerAge.Annual income.Financial situation and needs, including the financial resources you're using to fund the annuity.Financial experience.Financial goals and objectives.Intended use of the annuity.Financial time horizon.More items...

An annuity consideration or premium is the money an individual pays to an insurance company to fund an annuity or receive a stream of annuity payments. An annuity consideration may be made as a lump sum or as a series of payments, often referred to as contributions.

A deferred annuity is an insurance contract that promises to pay the annuity owner either a lump sum or a regular income at some future date. People frequently buy a deferred annuity to supplement Social Security benefits and other income when they retire.

There are four basic types of annuities to meet your needs: immediate fixed, immediate variable, deferred fixed, and deferred variable annuities. These four types are based on two primary factors: when you want to start receiving payments and how you would like your annuity to grow.

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Guam Annuity as Consideration for Transfer of Securities