A tax rate of 15% during accumulation was not considered since investors in this tax bracket aren't likely to be attracted to variable annuities
Preliminary data in the study "Variable Annuities
: An Industry in Transformation" by Conning Research & Consulting, show the individual annuity industry returned a profit of $7 billion in 2003, primarily due to the swing on variable annuities
Also, there is a large body of literature supporting the use of variable annuities
as the investment vehicle of choice in net income make-up charitable remainder trusts, to ensure that there is no accidental income.
are primarily asset-accumulation vehicles that do not require underwriting, companies must have an insurance license to manufacture them.
When the unitrust recipient can rely on other sources of income, the trustee can invest the trust assets in variable deferred annuities
that do not provide much current income, but which have significant appreciation potential.
Insurers could do a better job promoting the payout feature of their fixed annuities
, especially for contracts written under the 1971 annuity mortality table, he added.
The Service concluded that the facts indicated that the parties to the transaction anticipated that the GRATs would not have sufficient cash flow to pay the annuities
and that the loan mechanism would be implemented to pay the annuities
As Zander and fellow presenters pointed out, annuities
are the only financial product that can avoid the devastation a bear market can wreak early in retirement, and that can keep on paying no matter how long the investor lives.
Now the president's proposed savings accounts could hurt the viability of the variable-annuity product itself in that the new accounts would be tax-free investment vehicles, while distributions from annuities
still would be taxed.
Charitable gift annuities
are often overlooked as a financial planning technique.