![]() | |
![]() | |
![]() |
Investing Information |
|
![]() |
Love The Thrill of Risk? Invest in an Annuity!
With the stock market in steep decline, people are looking for safe places to invest their savings. Many banks and investment companies are pushing annuities. Annuities offer a higher interest rate than CD's, but are they safe? You could view an annuity as a tax deferred CD. You don't pay taxes on the interest until you start drawing from the annuity. But there are some important differences between an annuity and a CD. An annuity is a product offered by an insurance company. With giant corporations like Enron, Kmart, Worldcom, and United Airlines going bankrupt, can you guarantee that the insurance company won't fold, leaving you with nothing? Insurance companies are insured by re-insurers, like General Re. But it seems no matter how large a company is, you can't be sure it won't fold. The bankruptcy of a large insurance company might cause the re-insurer to collapse along with it. Bank CD's are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $100,000 per bank. The FDIC is a branch of the U.S. Government, who, as you know, are the people who print the money. If they go bankrupt, we'll have more to worry about than just losing our savings! A new type of annuity called a charitable gift annuity has come on the market recently. These are issued by charity organizations. You give your money to the charity, you receive a tax benefit, and in exchange the charity promises you a fixed payment for life. Unfortunately, this scheme has become a mode of operation for con artists. The charitable gift annuity has been added to top ten scam list of the North American Securities Administrators Association. They explain that charitable gift annuities are subject to virtually no federal regulation. Here in Arizona, 430 investors lost their savings in a ponzi scheme run by the Mid-America Foundation Inc. Banks and investment companies hawking annuities promote the higher than CD interest rates, but they fail to reveal the hidden fees and high early withdrawal penalties. If you need to access your annuity before age 59½, you could be subject to a 10 percent penalty. With the recent bankruptcies, and discovery that many giant corporations have been cooking their books for years, I feel it's best to play it safe. If you love the thrill of risk, or if you have already purchased an annuity, I wish you luck. As Will Rogers said, "I am not as concerned about the return ON my money as I am about the return OF my money". Permission is granted for the above article to forward, reprint, distribute, use for ezine, newsletter, website, offer as free bonus or part of a product for sale as long as no changes are made and the byline, copyright, and the resource box below is included. About The Author Copyright(C)2002 Bucaro TecHelp. To learn how to maintain your computer and use it more effectively to design a Web site and make money on the Web visit http://bucarotechelp.com To subscribe to Bucaro TecHelp Newsletter Send a blank email to subscribe@bucarotechelp.com
MORE RESOURCES: Peloton Shows Signs of Life The Motley Fool Here's what investors should know for tax season Yahoo Finance Nearly 50 senators introduce challenge to Biden ESG investing rule Washington Examiner 10 best long-term investments in February 2023 Yahoo Finance 9 Best Ways To Invest $1,000 Bankrate.com Investing Like Warren Buffett The Motley Fool Online Travel Companies Make a Bundle Investing Customer Cash Skift Travel News ESG Investing Statistics 2023 Bankrate.com Black History Month: Investing in People and Communities Yahoo Finance Mission Critical REIT Investing Seeking Alpha Will the U.S. Stock Market's Bull Run Continue? Investing.com Investing When Your Time Horizon Is Short The New York Times Investing in Method Andreessen Horowitz Tesla Stock Just Had Its Worst Year in History -- Here's Why ... The Motley Fool Five reasons why millionaires are back investing in Bitcoin FinTech Magazine Tax-Aware Investing: What Is It and How Do I Do It? | Chase Chase News & Stories Investing in Rockwell Automation (NYSE:ROK) five years ago would have delivered you a 65% gain Simply Wall St Why You Should Invest: Top 10 Reasons AllBusiness.com VIDEO — EB Tucker: Gold, Silver Price Levels to Watch, 2023 Investing Strategies Investing News Network The 10 golden rules of investing Yahoo Finance Investing in Voldex Andreessen Horowitz Ultimate Guide on Investing for Beginners Entrepreneur JPMorgan Chase investing $3 million in Columbus Urban League’s Accelerate Her initiative NBC4 WCMH-TV 5 Investing Alternatives for Conservative Investors Kiplinger's Personal Finance Global investors take cautious approach to Chinese stocks following ... Pensions & Investments Snap Stock Falls on Another Set of Weak Results Investing.com Investing in 2023: A Year to Be Patient and Selective Morgan Stanley 3 Red Flags for Verizon Investors The Motley Fool 2 Dividend Stocks to Help You Beat the Market in 2023 Investing.com Today's most important initiations By Investing.com Investing.com Alibaba Set to Gain as China Unfreezes Economy Investing.com Today's most important upgrades By Investing.com Investing.com Church Pension Group Hosts Conversation on 2023 Sustainable Investing Landscape and Strategies Yahoo Finance Investing in PLAI Labs Andreessen Horowitz |
![]() |
![]() |
![]() |
RELATED ARTICLES
Coca-Cola - A Value Stock? There has been much talk lately about Coca-Cola and its potential as a value stock - as it now spots a dividend yield of 2.6% (which is the highest dividend yield since the late 1980s) and a P/E or less than 21 - right at the bottom of its five-year low. Trading Baskets Part I Q. What is a basket?A basket is a group of up to 50 stocks that you can trade, manage and track as one entity. Pros & Cons of Investing in Bonds What are Bonds?A bond is a debt security, by which you are lending money to a government, municipality, corporation, federal agency or other entity known as the issuer. In return for investing in the bond, the issuer promises to pay you a specified rate of interest during the life of the bond and to repay the face value of the bond (the principal) when it becomes due. Time is Money and We Are Running Out of Both! One of the fundamental principles of finance is the concept that $1 today is more valuable than $1 a year from now.Making adjustments for inflation, the dollar will buy less goods and services next year. Justify Social Security ... Dont Save for Retirement It is a common question when investors review their retirement plan-should we include social security benefits into our retirement income projections?It seems the closer an investor is to retirement, the more likely he/she will include social security benefits into the analysis. Younger investors, however, may feel compelled to omit such benefits. How to Buy to Let Find out everything you need to know about buy to let. Learn what to buy, where to buy and what not to buy. Global Markets: A Window on the World Economy Expectations drive the market. Every stock price is driven by what people expect the company to do. What Is A Fair Market Value, Really? If Youre Going To Trade, Be Sure Its Worth It! I've been involved in online trading, specifically with stock and index options, for several years. In this time, I've spent a great deal of time thinking about value and the fact that anything, be it a stock or currency or even a house, is worth exactly whatever someone else will pay for it. Risk and Reward If you are doing your own investing in the stock market, what would be the first question you would ask yourself before you make any trade or investment? If your answer is how fundamentally sound the stock is, or whether the stock just broke out of a trading range on a chart, or the fact that the stock has gone down 50% in the last 6 months, or whether the volatility is low now so it is a good time to buy or sell, then you are probably on the road to ruin. These strategies have nothing in common with each other and there are all kinds of different criteria that I did not mention that have nothing in common with each other. Chile Leads the Latin Pack Everyone's talking about China. Don't miss the opportunities in the other CHI. Day Trading the SP Futures with Initial S/R and the NYSE TICK For instance, if the market moves up in the first 20 minutes of trading, touches the initial resistance zone, and then turns down, this implies that a good tradable downtrend move is likely to develop.How strong that new trend becomes is market-dependent. Lessons in Transition Q: What have been the most successful approaches to attracting direct foreign investments: offering prospective investors tax breaks and similar benefits, or improving the overall investment climate of the country?Empirical research has demonstrated that investors are not lured by tax breaks and monetary or fiscal investment incentives. They will take advantage of existing schemes (and ask for more, pitting one country against another). Critical Options Investing Tip When Trading Naked Calls and Puts An option is a derivative trading product that is best used by investors as a hedging tool providing investing profit protection and profit enhancement. Although it is a powerful risk management tool, it can also be used effectively as a stand-alone trading vehicle. Remembering TEOTWAWKI and Learning from It Its only been about 5 years since we had major scares in the marketplace regarding Y2K. You might recall that many computer systems were not programmed to be able to understand the change from 1999 to 2000. Dont Catch a Falling Knife One of the most common mistakes made by inexperienced investors is trying to "catch a falling knife". This is the phrase used to describe the habit of buying stocks that are in "freefall", and is a poor strategy, albeit common among new investors. Investing and the Fear of Regret and Greed People tend to feel sorrow and grief after having made an error in judgement.Investors deciding whether to sell or buy a security are typically emotionally affected by whether the security was bought or sold for more or less than the current price. Why You Need To Buy and Sell Gold Coins (Part 5) Grading coinsThe condition of a coin is commonly summarized by a grade. Because the value of collectible coins often varies dramatically with grade and overly generous grading is not uncommon, reasonable grading proficiency is an important skill for collectors. Protecting the Tax Advantage of Your Deferred Compensation The American Jobs Creation Act of 2004 imposed strict new rules on non-qualified deferred compensation plans. Beginning in 2005, deferred compensation programs that are not in compliance with the new rules may be taxed as wages, slapped with a 20% excise tax, plus charged an interest penalty. Why Should I Use Penny Shares to Build Wealth? A strategic question. Why indeed?1. Will a Falling Dollar Derail Your Plans for Retirement? How much are you willing to pay for a tank of gas? We've all watched as gas prices hit record highs, but what would you do if you filled your tank and paid by credit card only to discover on your monthly statement that you paid $80 to fill an economy car. No, this is not some future doomsday projection of oil prices. ![]() |
home | site map |
© 2006 |