I’m finally able to quit my job because I’m fully vested in the stock option plan. The amount of money it’s worth, assuming the $4000 annual investment limit on IRAs, would fund several of them. How many of the things can I have at once?

I’m nowhere near retirement age, so forget an annuity.

My main goal is to cash out some of the money so I can pay off a bunch of my debt and make my first house purchase more affordable. If there’s any other method to do so without incuring a bunch of penalities, I’d be happy to hear them.

No limit on the number of accounts, just deposits. Cashing them out will create taxable income plus, if you are under 59 1/2 a 10% penalty.

Should I take annuity or lump sum? Before you buy the Megamillions lottery ticket from the cashier, you must select a payment option. Since the economy is not as good as it used to be, I decided to take annuity. How do you select annuity or lump sum?

It all depends. If you are 45 or under I would say take the payments over time. That way you won’t go instantly broke. If you got a lump sum and invested it you could be putting a lot more at risk at one time. Now I’m not saying that investments are a bad idea but it is a double-edged blade. Now if you’re a little bit older you might as well take the lump sum and live your life to the fullest. I’m only 22 and if I won I would take payments over time. I seen on this man on TV that got like $180k a year for the next 30 years. But it’s your life.

I buy real estate notes, trust deeds, annuities, etc….if you know of anyone that is trying to sell a note, even business notes, please email me and let me know. Plus they can visit my website which is www.cash4cashflows.com/sconner where they can see exactly what it is that I do. Thank you!

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I live in Canada if that matters. I have an option of lump sum or annuity. I was thinking pay student loans and buy a house and car, but what about investments? I am thinking it is smart to buy a house and never have to make mortgage payments… help…..
I have about $15 000 of my own money already saved, and about $17 000 student loans (dont have to start repaying for another year) Thinking of getting a volkswagen TDI probably used. I dont want to live the life of a rockstar, I want to make sure I secure my future.

First thing to do: NOTHING!

Go to your bank and open a Certificate of Deposit with a 6 month maturity. Then, for the next 6 months, consider all of your options and ideas.

DO NOT buy a car, clothes, trips, dinners, shoes, a dog, a horse, a house, a boat, a plane, a new anything or give any of it to anyone who needs it. WAIT the 6 months and consider a long-term plan.

Consult people who have money and have been able to hang onto it. Talk to no one under 50 about this matter.

I would buy these three . . .

A home remodel
A hybrid car
Annuities for my kids/grandkids
Ooooooops – forgot to write. . . you can buy ONLY 3 things . . . must be late!

If I had unlimited funds, I would buy more than 3 things.

I’m trying to find out wether they are any good. If they are, who does them?
I know you pay a lump sum and in return get payments for care for the rest of life (lump sum being approx 4 to 5 x the annual payment).
Where can I get more independant advice?
Thanks

An independent financial advisor can help you with that.

I will be receiving over 6 figure profit sharing amount in the near future. I want to invest it, and receive a monthly pay out for my retirement. This is other then an annuity. I am 63 and receiving social security.

You were receiving social security. The profit sharing will wipe that out pretty much.

There are mutual funds that have monthly distributions. But you are limiting your investment choices by stipulation monthly distributions.

Here are some choices.

DPD 8.85% annual return pays 0.15 per share monthly price about $20.00 a share

JSN 9.27% annual return pays 0.148 per share monthly price $19.16 a share

ERH 9.22% annual return pays 0.20 monthly price 26.03. This one just raised the diviidend.

There are all equity funds. Future payouts may or may not be as good.

16. You are considering buying a perpetual annuity which costs $10,000 now upfront. You could instead invest in a CD and earn 4% (your discount rate). What is the minimum yearly payout you require to buy this annuity?
a) $101
b) $401
c) $1001
d) $10,001

NPV of perpetuity is A/r, where r is discount rate, and A is the amount you receive each year, starting a year from now.

Since there is no other info, take 4%=0.04 is your discount rate.

you want your perpetuity to have higher NPV than 10K, so you want A larger than 10000*0.04=400, so b is the answer.

My husband and I have been advised to buy a significant amount of whole life insurance as a safe way to invest. We have just started our family and I am a little wary. I am not really sure I understand why it would be better to do this than to invest in bonds, annuities, etc. Any ideas? answers?

You do NOT want to invest in whole life. First, your savings are generally going to gain very small interest amounts. Second If somthing happens and one of you passes away, your benefit will not be that large. Third, whole life is expensive and the amount of money can seriously effect a budget, especially for a growing family.

Instead of a whole life program you want to invest in term life insurance, and invest the difference. This is where you are only insured for thirty years or so and then the insurance ends. First, term insurance is cheap, it is not going to be a big piece of your monthly spending. Second of all your benefit if one of you dies is much larger, You can get ten times the coverage for less money. Third, you will not need tons of life insurance in thirty years when your children have left the house and made it on thier own.

For your savings, simply open a ROTH IRA account. When you make the term insurance payment take the extra money you would have spent on whole life and put it in the ROTH. If you do this you will see significantly more savings when you retire, and it will not be taxed as income when you take it out. This plan will leave you with more money in the long run,and more flexability in
the short run.

To determine the estate tax consequences, all of the following require an examination of who paid the premiums EXCEPT?

a. a life insurance policy.

b. an annuity whose owner has died after the annuity starting date, and under which survivor benefits are payable in a series of payments.

c. an annuity whose owner has died after the annuity starting date, and under which survivor benefits are payable in a lump sum.

d. an annuity whose owner has died before the annuity starting date.

OH BOY! Where did you come up with these answers? 0-for-3

YAHOO LADY, what test are you studying for?

Study harder and you will know the answers.