INVESTING BLOG

  Variable annuities offer more choices than fixed or guaranteed annuities. Some of the things they offer that are not the same as a fixed annuity are, tax deferred earnings, a choice of payouts, plus the opportunity to make unlimited contributions if the annuity is nonqualified. The things that it offers different from the fixed annuity is that you have a potential for making more money and it also gives you more involvement on how to allocate your assets among your investments. With all annuities one thing is constant, you can select guaranteed lifetime income. Some of the things that differ from a variable annuity from a fixed annuity are: 1. Variable has greater potential rewards, and with a fixed there is no inflation protection. 2. With a variable you have various levels of risk and the fixed has a guaranteed return. 3. A variable gives you a choice of investment portfolios whereas with a fixed the company manager chooses investments, and 4. A variable keeps assets in a separ...

If you purchased your home paying less than 20% down, chances are you had to purchase “mortgage insurance” in order to qualify for your loan. A mortgage insurance policy protects the bank in the event they are forced to repossess your house and sell it at a loss. As with most other types of insurance, you pay a monthly premium on top of your monthly mortgage payment for this policy. A mortgage insurance policy provides the means for purchasing a house you may otherwise be unable to afford, due to a limited down payment. Once you own a significant portion of your home, usually around 20%, this insurance policy can, and should, be eliminated. Recently enacted federal law made it a little bit easier to rid yourself of your monthly mortgage insurance premium by requiring your lender to automatically eliminate your mortgage insurance, once you own 22% of your personal residence. Unfortunately the 22% equity is based on the value of your loan compared to the home’s purchase price so the lend...

  The federal government imposes a substantial tax on gifts of money or property above certain levels. Without such a tax someone with a sizable estate could give away a large portion of their property before death and escape death taxes altogether. For this reason, the gift tax acts more or less as a backstop to the estate tax. And yet, few people actually pay a gift tax during their lifetime. A gift program can substantially reduce overall transfer taxes; however, it requires good planning and a commitment to proceed with the gifts. Advantages of Gift Giving You may have many reasons for making gifts—for some gift giving has personal motives, or others, tax planning motives. Most often you will want your gift giving program to accomplish both personal and tax motives. A few reasons for considering a gift giving plan include: Assist someone in immediate financial need Provide financial security for the recipient Give the recipient experience in handling money See the recipient enj...