Annuity Purchase Blog » Annuity Cash

Question: I have an annuity but I need cash now?

admin — Fri, 23 Jul 2010 21:05:19 +0000

who do i call?

J G Wentworth

I HATE those damn commercials

How can I get money from an annuity from my divorce?

admin — Sun, 09 May 2010 22:00:44 +0000

My ex-husband had an annuity from his union all set up. Once he’s been inactive from that union for two years, he became eligible to cash it out. In our divorce settlement, they awarded me 60% of that. My lawyer suggested that we divide it using a quadro. If he is eligible to cash it out now, can he just do that and get me my 60% of that? If not, then how do I go about establishing this quadro? And how much will this cost me and how difficult is it to get that money out?

With the quadro you can do whatever you want with your half.
If he wants to be an idiot and cash it out, let him.
Please make sure you ask your lawyer next time you see him to make sure, since I only know this from IRA’s.

Not sure if your plan is to keep it invested as an annuity or cash it out also.
The quadro is if you want to keep your 60% in the annuity.
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Does it matter if you choose "annuity" or "cash option" when you first buy a lottery ticket?

admin — Wed, 05 May 2010 01:55:46 +0000

lf you actually won, wouldn’t they still ask do which option do you really want??

If you choose the annuity when you buy the ticket, you’ll still have the option of going with the cash option when you claim the prize but not vice versa. It’s best to keep your options open and consult an accountant if you do win cause the difference could mean millions in taxes.

If you won the BIG lottery, would you take the cash option or annuity?

admin — Tue, 04 May 2010 03:21:11 +0000

For those who don’t know, annuity is the lottery jackpot split up into 26 annual payments. The cash option is usually a lil less than half of the jackpot, but you get it in one lump sum.

depends on the size of the pot. probably cash. I have no guarantee that that lottery will still be around in 20 years.

why do i lose over 40% when i cash out my annuity?

admin — Mon, 26 Apr 2010 09:26:36 +0000

Could be any number of reasons, depending on what type of annuity you’re talking about. Are you fully vested in the funds? Are they holding out some for taxes?

Can she cash in an annuity?

admin — Sun, 18 Apr 2010 03:25:06 +0000

My wife’s deceased step father used to sell for Western and Southern Life.
He has been gone 18 years. He put a few annuity policies for her nephews in her name, as he did with other family members. Trying to boost his sales, I guess.
The nephews are now adults, and we haven’t seen them in years.
Nor has anyone paid on the policies in years. Once a year we get a bill, but have never paid them.
The fund amounts are about $1,000.
Can she cash these in, or is it only for her nephews?
The policies are in her name.
Thank You!!!!

If the annuities are in her name, she is the legal owner of whatever they are worth. That said, if you have been ignoring bills for years, Western and Southern Life has most likely been using the ‘cash value’ to pay the premiums for the attached life insurance policy. It is entirely possible there is nothing left to cash in. It can’t hurt to ASK, but I think you will be disappointed.

How can i cash in my annuity that is being managed by allstate?

admin — Wed, 14 Apr 2010 08:10:23 +0000

I am receiving an amount every month, but i want a large lump sum. Iv called and spoke with a representative twice and they tell me because of the privacy policy they can not tell me how much i have and when i ask how to cash out they say i must go though someone else, or to receive a lump sum i must be 25k in debt. Can anyone help me figure out who i need to contact to talk about getting my money, and will actually have the answers im looking for?
I am the owner

Did you have a structured settlement as the result of a claim? If so, you can’t cash it in for a lump sum.

There are companies that advertise on tv that they will buy your structured settlement. But those companies offer pennies on the dollar. So, you’d be a fool to do that. And your structure may have language in it that prevents it from being sold to one of those companies.

What are the tax consequences of cashing in a single premium annuity?

admin — Thu, 01 Apr 2010 10:31:30 +0000

This has been held since early 80’s and I was thinking of cashing in to get more term insurance and
pay off debt. Any advise?

Pay off debt that can be used as a tax credit and there won’t be any consequences. Home mortgage, business credit cards, energy efficient home improvements are great tax credits. And pay 2.4% federal taxes when you cash it in. This will help you break even if you are making more than 75,000 a year.

I invested LIC Jeevan Suraksha (122-13), notional cash option 294000/, annuity due on 14-1-2010, what i will g?

admin — Sun, 28 Feb 2010 11:42:18 +0000

pention under option "F" with terminal bonus ?…what i will get monthly ?? please reply

You will get about 1900/- per month as pension. To calculate this visit www.licindia.in, select premium calculation from that select Jeevan Akshay – VI as product give your date of birth and in purchase price give the notional cash option value it will calculate the pension and display it.

Annuities Vs Cds

admin — Fri, 26 Feb 2010 07:36:20 +0000

When it comes to choice of low risk investments that offer a reasonable return, many people find themselves torn between annuities and CDs.

Annuities are financial products, mostly offered by insurance companies, in which the person taking the annuity gives the company offering the annuities a payment (annuity premium), which is invested by the annuity company, guaranteeing the annuity holder an assured flow of income for a lifetime or up to a pre-agreed annuity expiry date. In some types of annuities, the annuity holder makes regular periodical payments to the annuity company, which the company invests on their behalf, and pays the annuity holder a lump-sum payment upon the maturity of the annuity.

On the other hand, CDs (Certificates of Deposit) are a form of time deposit, that is, financial arrangements in which the CD holder deposits an amount of money with a financial institution for a fixed period of time at whose end he withdraws the amount he invested plus the interest (usually pre-agreed) it has earned. The earnings on CDs are typically significantly higher than on usual savings, which can be withdrawn on demand.

As investment options, both annuities and CDs have their unique advantages and disadvantages.

The main advantage that annuities have over CDs is that annuities typically offer higher returns than CDs. Moreover, some of the guarantees available to annuity holders (like the guarantee of a steady stream of income for a lifetime) are not be available to CD holders. The downside of annuities is their relatively higher risk, at least when compared to CDs. As it were, in most cases the guarantees behind annuities are just backed by the strength of the company offering them, and if the company goes under (which is a real possibility in the current recession), the money annuity holders had put into their annuities also go down with it.

Turning to CDs, the main advantage that CDs have over annuities is the fact that they offer a lower risk than annuities. This is because, legally speaking, CDs are treated as savings whereas annuities are considered to be investments. Consequently, CDs (being savings) benefit from federal deposit insurance which annuities (being investments) donât benefit from. On the downside though, the returns on CDs tend to be lower than returns on annuities. Moreover, if one opts to cash a CD before its maturity, they are often subject to penalties which can amount to quite significant figures, although most annuities also do charge a âsurrender feeâ if the annuity holder opts to prematurely exit from the annuity agreement.

Steven Hart
http://www.articlesbase.com/insurance-articles/annuities-vs-cds-705707.html