single premium deferred fixed annuity

L1: single premium deferred fixed annuityWouldn’t 5.55% return be considered reasonable by IRS?($285,) How do I find out if selected withdrawal amount fits in penalty free withdrawal provisions of annuity contract? Could I get 2 contracts(1-grow,1-withdraw) Will I be able to start withdrawals after 4 yrs. on 10 yr. Should I just get Single Premium Immediate Annuity for life with 30 yrs certain to be safe?Would appreciate any suggestions…Thanks2002-09-19 15:38, By: frisky, IP: [127.0.0.1]
L2: single premium deferred fixed annuity5.55% would probably be considered reasonable. However, interest only as a payment isn’t an acceptable method – get ready to pay the 10% penalty tax. Again, I suggest you check out our calculator and caluclate an acceptable payment using one of the 3 basic methods. Talk to you advisor, accountant, etc. regarding how to find out. If it were me, I’d start by reading the annuity contract!2002-09-19 17:39, By: Gfw, IP: [127.0.0.1]

L2: single premium deferred fixed annuityI obviously need a little help here; not so much on the question being asked, but why would some one purchase an annuity inside of an IRA? It would seem to me that there are generally three attributes to an annuity: almost risk-free, the return and the tax deferral advantages. Needless-to-say, the tax deferral advantages are mute. Further, at 5.55% or so, it would similarly seem to me that one could build a treasury zero ladder for the same funds and achieve the same rate; or build a portfolio of high grade corporate bonds at an even higher yield.It seems to me that I am missing something.TheBadgerwjstecker@wispertel.net2002-09-20 09:47, By: TheBadger, IP: [127.0.0.1]

L2: single premium deferred fixed annuityJust like any investment product, there could be a variety of advantages to using a tax-deferred annuity inside an IRA depending on the objectives of the owner. Consider…1) Interest rates on certain fixed interest annuities have rate guarantees between 3 and 10 years, with the guaranteed rate often higher than what the average investor can achieve in the market place.2) While there are typically surrender charges and market adjustments if the contracts are surrendered during the guarantee period, there are typically no charges once the period ends – you get 100% of the accumulated vale to reinvest or move.3) Just like with any fixed interest investment, there is a market adjustment for swings in interest rates. However, unlike bonds, the adjustment is waived at the death of the owner. I know of at least one contract where the adjustment can only serve to increase the value at death, never decrease.Over the past several years, I’ve seen an increased usage of the fixed interest annuity between the ages of 60 and 70 when only the interest is used for income.Just my thoughts.2002-09-21 11:59, By: Gfw, IP: [127.0.0.1]