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==== ==== When considering the formula for present value of an seven percent return annuity, there are many factors to investigate along the way. While some may consider this to be a cumbersome activity, history suggests that investigating the present value of an annuity due will pay often off if not immediately then down the road. For example is one considering the purchase of an existing annuity due, or is one considering the sale of an existing annuity due, or the purchase of a new annuity? Or is one considering evaluating an existing annuity for estate tax purposes? What discount rate assumptions are proper and what financial crediting factors are appropriate? http://www.sevenpercentreturn.com ==== ====

When seeking information surrounding annuity income or guaranteed life income it can get quite confusing with the vast amount of financial information floating around in the search engine space. In a nut shell annuities are guaranteed income for life typically made through monthly payments. An annuity is nothing more than a payment received from a life insurance company in exchange for one payment from you. What that payment is depends on how much you wish to invest, your age and the prevailing interest rates. Over the years there have been many annuity related myths that have made their way to the surface and we are here to touch upon a few of them. All Annuities Are Variable Many times annuities are positioned and explained incorrectly when referring to variable, fixed or indexed annuities. The reality is that there are very distinct choices when it comes to picking annuities, fixed, indexed or variable. With a fixed annuity the interest rate is set and the beginning and the investor is always aware of what their returns will be which is why it is considered guaranteed, with an indexed annuity there is a set floor return with exposure to an index like the S&P 500 so you have a chance at some upside if the equity market does well and lastly with variable annuities returns will fluctuate depending on the returns of the underlying mutual funds. In addition to the choice of fixed, indexed or variable there is also the choice of when payments begin, immediately or deferred. Most of the time when folks are talking about annuities they are referring to deferred annuities and deferred variable in particular. Deferred fixed, indexed and variable annuities are essentially savings or accumulation tools, while immediate annuities are income annuities. Fixed immediate annuities pay a known amount each month based on the interest rate at the time of purchase and will continue to pay for the rest of your life or a specific predetermined amount of time. Typically, immediate variable or indexed annuities will pay for life, but the payments could vary from month based on investment performance. Only Go With The Big Annuity Brands Everything inside us always wants to push us towards going with the big brands but that is not necessarily always the best choice for the investor. Make sure you receive the right financial


guidance when choosing an annuity plan provider from a larger brand to make sure it is right for you. Mutual Funds Out Perform Immediate Annuities There is nothing stating a mutual fund will or won't outperform an annuity it all really depends on where the money is going and what fund. There are tradeoffs and risks to everything and your financial planner or advisor should point you in the right direction depending on your retirement goals.

Jereme Petersen is the principal broker at Your Own Retirement which assist individuals with early retirement planning along with annuity retirement planning help along with a wide variety of other retirement planning services.

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==== ==== When considering the formula for present value of an seven percent return annuity, there are many factors to investigate along the way. While some may consider this to be a cumbersome activity, history suggests that investigating the present value of an annuity due will pay often off if not immediately then down the road. For example is one considering the purchase of an existing annuity due, or is one considering the sale of an existing annuity due, or the purchase of a new annuity? Or is one considering evaluating an existing annuity for estate tax purposes? What discount rate assumptions are proper and what financial crediting factors are appropriate? http://www.sevenpercentreturn.com ==== ====

7% investment annuity return  

When considering the formula for present value of an seven percent return annuity, there are many factors to investigate along the way. Whi...