-Navigation-
______________

-Links-
crosswordpuzzlehelper
metalhose
frankiejordan
caffeinesurvey
worldswatchallenge
pamilaandersonnaked
philipssemiconductor
gastricbypassprocedure
renaissanceeducation
educationsummiton
hockeysocks
medigapinsurance
analprostatetoy
beechtrees
autodetailingprices
massivecumshots
polarisatv
humanresourcejobs
musicringtone
itpapulling
nubileslaura
westernfabric
alittleprincess
adultbedwetting
cheapconcertticket
hashhouseharriers
salvagedcardealers
metropolitanhoteltoronto
fivecountycu
abbench
rosiegreer
pharmacytechniciansalary
atvsales
combatgames
personalizedbusinessgifts
motorcyclepetcarrier
onlinechess
customizeshirts
clothdoll
partneryoga
nationalvisacenter
suicideknob
vacationbibleschool
drawstringbags
schoolshooting
parentalrights
woodchairs
halloates
vodafonenz
molletoyota
carwashbusiness
cadsoftwarereview
shadestructure
postpuller
webrootspysweeper
atlantaoxycontinlawyers
freecomputerthemes
pregnancyultrasound
whyme
orangejuliusrecipe
forexonline
clothessteamer
dirtbiketrails
importednagchampa
actualmalecircumcision
haruwodaiteita
poconovacationrentals
roastedredpeppers
elcentroca
alpacafarming
pctablet
mainelobsters
manuelnoriega
troybuilt
lambertairport
electricsix
orbitaldiseases
fsecure
virginialawyer
goodriddancegreenday
tvheadphones
trustaccountingsoftware
goodluckbear
abworkoutroutines
wyattcooper
malepuberty
malemidlifecrisis
mysaviorloves
montanaelkhunts
petersburglawyers
photographystudios
alojamientociudadrodrigo
antelopevalleyfairgrounds
bigopenvagina
excelbiweeklymortgage
medievallife
schooldirectory
jeepdiesel
postcerealgames
romanarmour
______________

-Archives-
______________

-Powered By-
______________

 

-Designed By-
______________

   Thursday, September 6, 2007

What is a Tax-Deferred Annuity? A tax-deferred annuity is a contract between you and the insurance company with guaranteed interest and guaranteed annuity income options. There are no upfront sales charges or administrative fees during the life of your contract.
Advantages of Tax-Deferred Annuities include tax deferral, stability, may avoid probate, liquidity features, and guaranteed income.
One of the primary advantages of deferred annuities is the opportunity to accumulate a substantial sum of money by allowing your premium and interest to grow tax-deferred. Unlike taxable investments, you pay no taxes on your annuity interest until you begin to take withdrawals or receive income. This allows your money to grow faster than in a taxable account, because you earn interest on the money that would have otherwise been paid in taxes.
Your tax-deferred annuity is stable and safe. State insurance department laws require insurance companies establish and maintain reserves equal to the cash surrender value of your annuity contract at all times. In addition, state laws require insurance companies maintain minimum amounts of capital and surplus for further contract owner protection.
Insurance companies invest your premium dollars in a diversity of investments that are closely regulated by the insurance departments. These long-term investments ensure the stability of the company and help to provide you with a competitive yield.
In the case of premature death, your beneficiaries have the accumulated funds within your annuity available to them, with most companies and may avoid the expense, delay and publicity of probate.
Most annuities provide you with opportunities to withdraw funds at any time (subject to applicable surrender charges). Most contracts allow some form penalty-free withdrawals after the first contract anniversary. Some also have available certain riders which increase liquidity in the event of confinement to a nursing home or if diagnosed with a terminal illness.
Tax deferred annuities provide you with a guaranteed income with a tax-deferred annuity. You have the ability to choose from several different income options, including payments for a specified number of years or income for life, no matter how long you live. With non-qualified plans, a portion of each income payment represents return of premium which is not taxed, thereby reducing your tax liability from your income payments.

You can freely reprint this article as long as the
author, bio, and live links are left intact.


The Tax Payer as Gilligan
Let's all sing a new version to the tune of the 60's sitcom "Gilligan's Island" …
"Just sit right back and you'll hear a tale, a tale of mishandled use; that started with our nation's past to form a fiscal noose. The tax was a mighty hurtin' vice, our wallets paid the price; working hard to pay our share, it's not always fair, it's not always fair. The economy started heating up, so the Fed put on the breaks; if not for the courage of the consumer's purse, things could've been 'lot worse. The yields hit bottom as we turned our focus to the source of political fate; with deficits, the Speaker too, the President and his wife, those movie stars, the terrorists and Al Greenspan; here and in every state."
(The opening credits fade and the scene is one we have all experienced) …
The relationship between the tax payer and our government is a source of constant and sometimes entertaining debate. Like Gilligan, the tax payer may feel "slapped around" and unappreciated by a larger, yet necessary, entity. In this analogy, the Skipper represents our government. The decisions made by our elected officials and others of higher political rank may contradict our own opinions. What is the consequence of slapstick government spending and how does it affect you?
When it comes to the nation's monetary policy, the Federal Reserve Bank (a.k.a. the Fed) manipulates the supply of money. It adopts a tight monetary policy when the goal is to restrict the supply of money and an easy monetary policy when the goal is to circulate more money. A tight policy may occur during times of inflationary concerns whereas an easy policy may occur to encourage business expansion.
Here's where the laughter dies and we conclude there is no escape from the island.
The government has several methods to increase money supply and many reasons to do so. Keep in mind, the reasons are generally non-partisan and no one political party is to blame. One such reason, however, is to patch problems caused by government overspending.
When the government is unwilling to act prudently with its expenditures, their bills must still be paid. And when raising taxes is an unpopular alternative (as if anyone is ever happy to accept higher tax rates), printing money may become the default action. Now, if you, a simple citizen of the United States, cannot pay your bills, printing money is not an option. Such acts will land you on a metal bed in a shared cage we all call incarceration. Polite conversations with your spouse and friends will be substituted with arguments from your cellmate named "T-Bone" regarding the use of one shared toilet. But, the government will print money to compensate for its overspending. It then spends the new money and supply increases.
The joke is now on the hard working citizens of the United States and its set-up is familiar: "The government and a U.S. citizen walk into a tavern. The government points to the citizen and proclaims to all the patrons 'the drinks are on this guy!' Afterwards, the government finds a new citizen or tax payer and continues the trend."
In reality, the joke is on us all in the form of inflation. Simply described, with a greater supply of money, the dollar will be worth less than before. Once the purchasing power of the dollar declines, fewer goods and services can be purchased. Inevitably, consumers experience higher prices. The economy seemingly has more dollars but loses its purchasing power. A new character named "Inflation" finds its way onto our island. And when this occurs, we hope it will only be around for a couple of episodes.
It is important to note, not all prices and wages correlate with periods of inflation. Inflation may result in higher or lower levels of output and employment depending on the sector and type of goods or services. Some may benefit from higher inflation. The effects of inflation often include redistribution of wealth and income, changes in relative prices, and some saving restrictions for important goals such as retirement.
The inflation rate is measured by the Bureau of Labor Statistics (BLS) using the Consumer Price Index (CPI). Today, the inflation rate is about 3.5%. So how long should we expect to live on this low inflation island? This is a difficult question to answer considering it is impossible to calculate inflation going out several years from today. During the past decade, however, we have experienced low to moderate inflation. Still, according to the BLS inflation calculator, $1000 in 1995 has the same buying power as $1258.53 in 2005. Remember early 1979 through late 1981 when inflation rates hovered around 10 percent to almost 15 percent. According to the same BLS inflation calculator, $1000 in 1979 now has the same buying power as $2641.87 in 2005.
It is arguably the uncertainty of inflation that causes the most damage. Preparing for increases in the cost of living is an important aspect to financial planning. Your financial planner can assist you in reviewing inflation trends, introducing inflation adjusted estimates for future income needs, managing tax efficient portfolios, and keeping an eye on government actions. While you cannot control the weather of our economy, preparing your S.S. Minnow for potential rough sailing is important.
(As this episode ends and the closing credits roll, we rejoin the final verse of our amended Gilligan's Island tune) …
"So this is the tale of our inflation rates, they're here for a long, long time. You'll have to make the best of things, it's an uphill climb. Our law makers and bureaucrats will try their very best, to make the nation comfortable, with a fiscal mess. No rights, no wrongs, no benefits, not a single guaranty, like generations before yours now, it's challenging as can be. So join us here each year my friend, you're sure to pay your share; with every worker and our government, we make a solid pair."

About the Author: Wardlaw's belief is that familiar life elements best illustrate practical investment strategies; not typical investment jargon. With that philosophy, the author assists financial planners/advisors, brokerage firms, periodicals, and other investment information syndicates create informative and entertaining articles. For comments and questions, please contact the author at www.tools2invest.com or tools2invest@yahoo.com.


Mortgages guide 101
Mortgage is an age-old phenomenon. Mortgage refers to the method by which individuals or businesses can buy residential or commercial property without paying the full value upfront. The borrower or the mortgager uses a mortgage to pledge real property to the lender or mortgages as security against the debt for the rest of the value of the property.

In most jurisdictions mortgages are closely associated with loans secured on real estate rather than property such as ships, vessels etc. while at some places only land can be mortgaged. Arranging a mortgage is seen as the standard method by which people can purchase residential or commercial real estate without the need to pay the full value at that very time.

In several countries home purchase being funded by a mortgage is very common and normal. Moreover in countries such as Great Britain, Spain, United States of America etc. where the demand for homeownership is highest, strong domestic markets have developed.

Basically there are two types of legal mortgage:
· First is the mortgage by demise in which the creditor becomes the owner of the mortgaged property till the loan is repaid completely. This type of mortgage assumes the form of a conveyance of the property to the creditor, on the grounds or assurance that the property will be returned on the redemption. Mortgage by demise has become quite old and is rarely found nowadays. Countries like UK have abolished this mortgage.
· Second mortgage is the mortgage by legal charge. In this mortgage the debtor remains the legal owner of the property but the creditor too acquires requisite rights over it to enable them to enforce their security, such as a right to take possession of the property or sell it. The mortgage by legal charge is saved recorded in a register fir the safety of the lender.

Prior to giving the loan, the mortgage lender or the lending organization usually make a complete survey of the status of the person who is seeking mortgage. If other mortgages are already registered in front of the name of that person or if has delinquent property taxes, the mortgage becomes a difficult case.

In United States of America there are different types of mortgage loans. These are broadly divided into two: the fixed rate mortgage (FRM) and the adjustable rate mortgage (ARM).

In FRM the interest rate and the monthly payments do not change till the time you pay off the loan completely. Americans usually prefer to have a loan for 10, 15, 20 or even 30 years. There is a slight increase in the monthly payments due to increase in property taxes or insurance rates while the payments for the principal and interest will remain static throughout.

In an ARM, the interest rates are fixed only for a certain time period after which they change according to the existing rates in the market and some market index such as Prime Rate, LIBOR, and Treasury Index etc.

ARM transfer part of the interest rate risk from the lender to the borrower. As a result the loans are quite popular in cases where unpredictable interest rates make it difficult to acquire fixed loan. Though there is slight risk involved, yet the savings made through the ARMs make them a viable option for most of the people.

Mansi gupta recommends that you visit Mortgages for more information.