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Taxation of Annuity Income

If you purchased an annuity that provides income in retirement, the portion of the payment that represents your principal is tax-free; the rest is taxable. The insurance company that sold you the annuity is required to tell you what is taxable.  Different rules apply if you bought the annuity with pretax funds (such as from…

Worried retirement savers and retirees should consider annuities

Expert: Worried retirement savers should buy annuities People planning to retire this year should buy an annuity to guarantee future income now because annuity payouts that have been falling because of declining interest rates could fall further, says retirement income expert Wade Pfau “The simple income annuity can fit in for anyone who’s panicking about…

Income annuities increase income while reducing stress for retirees

“Incorporating an income annuity into a retirement portfolio increases income, cuts retirement stress and boosts retirees’ confidence, according to a study by researchers Michael Finke and Wade Pfau from The American College. Income annuities lower the risk of outliving savings in retirement without lowering overall income, compared with an investment-only approach, the study found.” Retirement…

5 Times an Annuity Makes Sense for Retirement

Jeff Rose explains “how to decide whether an annuity should be a part of your retirement plan.”1. You want guaranteed income for life.2. You hope to secure guaranteed income for a spouse.3. You want a low-risk portfolio above all else.4. You want to create your own pension.5. You want to protect your retirement assets from…