Comments on: Four Types of Annuities: Fixed & Variable Deferred, Fixed & Variable Immediate http://www.myretirementblog.com/four-types-of-annuities-fixed-variable-deferred-fixed-variable-immediate.html Retire happy, healthy and wise. Tue, 07 Feb 2012 11:13:49 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Tom http://www.myretirementblog.com/four-types-of-annuities-fixed-variable-deferred-fixed-variable-immediate.html/comment-page-1#comment-67811 Tom Sun, 03 Apr 2011 05:24:09 +0000 http://www.myretirementblog.com/four-types-of-annuities-fixed-variable-deferred-fixed-variable-immediate.html#comment-67811 The additional annual growth from tax deferral in a deferred annuity account, compared to a stock or bond index mutual fund that is outside an annuity account, is less than 0.2% (see cash flow projection on annuityevaluator.com). An immediate annuity that pays you a stream of periodic payments has no tax-deferred advantage over a stock or bond index mutual fund that is outside an annuity account. An index mutual fund that is outside an annuity account generates few short-term capital gains and, therefore, is mostly taxed at a low long-term capital gains tax rate, compared to annuity income which is taxed at the higher ordinary tax rate. Some of the annuity income is excluded from taxes, but the higher tax rate offsets the benefit of the exclusion. The additional annual growth from tax deferral in a deferred annuity account, compared to a stock or bond index mutual fund that is outside an annuity account, is less than 0.2% (see cash flow projection on annuityevaluator.com).

An immediate annuity that pays you a stream of periodic payments has no tax-deferred advantage over a stock or bond index mutual fund that is outside an annuity account.

An index mutual fund that is outside an annuity account generates few short-term capital gains and, therefore, is mostly taxed at a low long-term capital gains tax rate, compared to annuity income which is taxed at the higher ordinary tax rate. Some of the annuity income is excluded from taxes, but the higher tax rate offsets the benefit of the exclusion.

]]> By: FIRE Finance http://www.myretirementblog.com/four-types-of-annuities-fixed-variable-deferred-fixed-variable-immediate.html/comment-page-1#comment-67810 FIRE Finance Tue, 16 Jan 2007 05:20:38 +0000 http://www.myretirementblog.com/four-types-of-annuities-fixed-variable-deferred-fixed-variable-immediate.html#comment-67810 <strong>Jan - Week #2 - Round Up Of Carnivals And Festivals!...</strong> This week we started publishing our posts at Carnival of Investing in addition to our regular publications at Carnival of Personal Finance and Festival of Frugality. Without much ado let us get down to covering them. ... Jan – Week #2 – Round Up Of Carnivals And Festivals!…

This week we started publishing our posts at Carnival of Investing in addition to our regular publications at Carnival of Personal Finance and Festival of Frugality. Without much ado let us get down to covering them.
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