Annuity Rate

Using Negative Advertising to Acquire Annuity Prospects

2008-05-15T03:41:00.000-07:00

How do you buy toothpaste? Is it because Colgate protects you with fewer cavities or because Crest has been shown to be effective in preventing tooth decay? What about cars? GM has just the one for you however; Ford claims their car is rated higher than the others.

Have you ever noticed that advertising is either negative or positive?

Negative advertising focuses on elevating an existing concern. Positive advertising focuses on the positive attributes of a company or product.

How are politicians elected? Do they emphasize their positive attributes? Do they play above the board and respect their opponents? Do they let the election stand on the record?

No.

They attack, attack, and attack. They harp only the negative qualities of their opponent, both factual and perceived. The results pay off: Negative campaigning wins elections.

Negativity not only wins elections, it also sells products. By instilling distrust and fear into prospects, you can offer solutions to their worries. It can make you an enormous amount of money.

How do you use negative advertising to make money? It's easy. It requires a different approach than is traditionally used by insurance companies and agents. The Insurance industry focuses on establishing an image that comes across as professional and experienced. Agents emphasize how much training they have, how many degrees they've received, and how active they are in their communities. Typically, such advertising is a waste of time and money.

Look at your own experience. When was the last time you ran a company approved advertisement? How many calls did you have from it? We both know the answer to that question. If you had any at all, it's unlikely the results even began to pay for the cost of the ad.

Negative advertising is the key to your success. By talking about how good your company is with the usual claims in insurance advertising, you offer your target audience exactly what everyone else does: a boring sales pitch. Your target market doesn't want a sales pitch. They want solutions to their concerns. Emphasize what they're worried about, and you?ll grab their attention. By offering solutions to their problems, you offer them security and peace of mind.

Security and peace of mind is what is most important to seniors. How do you go about it? Recognize the enemy.

Who is the enemy? Old thinking! Here is an example, LTC salespeople.

Have you ever attended a LTC insurance seminar or a LTC sales meeting? Have you ever listened to a LTC ad on the radio? Do you ever wonder why sales for LTC insurance are so low, when it's so heavily touted as the next great market?

LTC is in fact a great market. It?s a market where an enormous amount of income can be made. However, it?s not easy to sell the insurance.

Selling annuities to seniors who are concerned about LTC, to protect their assets makes the money.

Nothing else is worth the effort.

Let's go back to advertising. When an LTC salesperson advertises, what is the message conveyed?

1. The many benefits their policies have to offer 2. The necessity for seniors to protect their assets 3. Fear: Seniors who don't own LTC will likely be confined to a nursing home where they won't be taken care of properly.

You've heard it all, no doubt. You may have even used some of these points yourself.

The goal is to attack the fear the LTC companies and salespeople instill. Structure ads which plant questions in the minds of our target audience about the competition, and attack LTC as a solution to their fear. This gets your prospect thinking about other possible solutions, other than LTC.

The goal is to create fear, uncertainty and doubt about the enemy.

The following are examples of negative ad headlines used to accomplish this:

? Find out why very few seniors need LTC insurance!
? Find out what LTC insurance companies don't want you to know!
? Find out what your LTC salesperson isn't telling you!
? How to cut your LTC insurance premiums in half!
? Save 50% on your LTC insurance premiums!
? Don't be a sucker! Find out if LTC really works!
? Get informed. LTC insurance isn't for everyone!

The ad provides information on how to contact your office.

Remember you don't want to jump into a sales presentation with these people. They need to be educated. When they schedule time with you, they'll be receptive to a solution that addresses their concerns: you in turn will have used your time productively.

Bill Broich is a 30 year annuity salesman who helps agents generate annuity leads. Visit his website to learn more -- Annuity.com.

Annuity Lead Solving Means Happy Wife Happy Life

2008-05-12T23:50:00.000-07:00

Have you ever been in the situation where you hate to go home after a hard day of selling insurance? I have.

I know what will be waiting for me, an unhappy wife. It is not that she is naturally that way; it is that she is worried about money, bills and the kids eating regularly.

If you sell anything on commissions then you fully understand. It can be feast or famine. I decided a long time ago to solve this issue. I wanted to come home to a happy wife and to leave the insurance business at the door.

I decided if I had more prospects to talk to than I could see then I would always have someone to sell to. I purposely over flooded my prospecting list with excessive prospects.

I used direct mail, referrals and seminars to provide them all for me. I always had more than enough prospects to see and often I would not get to all of them. Seems like a waste you say?

Not really. If you have an enormous amount of people who you could see then the fear of the Monday morning appointment scheduling was a thing of the past.

It was actually very easy to do and it has resulted in a lifetime of comfort when it comes to prospecting. Here is how I did it.

I borrowed enough money from the bank to fund a large direct mail program setup for 12 months in advance. I would mail 5,000 to 10,000 pieces a month with an average rate of response of 3.5%. The amount would vary based on time of the year such as the holidays. Here is the catch: If I had leads left over I could not get to because of the volume of the response, I would throw them all away. I could do so because I had flesh leads arriving in the mail almost daily. If someone did not want to see me or was hard to see I just chucked it.

It was almost like a breath of fresh air and an enormous amount of freedom. At the end of the year I added up my results and readjusted for the following year. At the end of the first year I calculated I had over 600 annuity leads that I could never get or about 50 a month.

What did I do, reduce my mailings? No I increased them by 50%.

The freedom of unlimited annuity leads for me was a breathy of fresh air. I also learned that if I had enough leads I could come home each night and I was happier which of course made my wife happier. The following year and each year afterward I have estimated that I have left 1,000 annuity leads uncalled and while it may seem a compete waste of time I look at it as the very best money I have ever spent. I have eliminated my need for someone to talk to about my insurance products and at the same time kept my home life happy.

A good lesson is this, ?Happy Wife, Happy Life.?

Bill Broich is a 30 year annuity salesman who helps agents generate annuity leads. Visit his website to learn more - Annuity.com.

10 Little Known Insurance leads - Annuity Leads Marketing Secrets to Double Your Income in 2007

2008-05-11T23:09:00.000-07:00

1. Failing to Market Your Business Effectively

This one is self-evident?or so we thought. The reality is 90-95% of all Insurance agents with whom we speak aren?t marketing at the level they can or should be, or just plain aren?t marketing at all! Many agents are in a comfort mode where they are living or dying off the referrals they may accidentally stumble onto. Most agents think they are marketing their services yet, when we ask for a specific, step-by-step marketing plan, the telephone usually goes dead for a minute.

Remember this statement, ?Marketing is the ONLY function of your business that makes you money! Every other function is an expense!?

Thus, if you are sitting back and waiting for a minor marketing miracle to happen and not optimizing your time, money or talents to become a top marketer in your field, you are causing yourself to lose thousands of dollars monthly. This could be one of the reasons why many agents drive cars that have over 150,000 hard traveled miles on them. I still believe insurance agents have a right to make a six-figure income and be able to enjoy life to the fullest. You need to be marketing every day to generate a steady flow of leads.

2. Not Fully Utilizing Your Invisible Insurance leads Asset

If you have been in the Insurance business for any amount of time, you have built up a substantial amount of goodwill among your clients. You have brought value and piece of mind to their lives. This asset, however, hasn?t been performing for you the way it should. We will show you how to convert your customers? goodwill into ready cash?and actually strengthen your customers? loyalty to you at the same time. And if you are new in the business and don?t have a client base we will show you how to use ?parasite marketing? to tap other professional sources within your community.

3. Using the Same Old Insurance leads and Annuity lead Ads that Get a Terrible Return

Ads, postcards, and direct-mail pieces cost you the same regardless of whether they bring in 1 new customer or 100. Knowing the secret techniques of creating award winning ads and direct-mail pieces can easily be the difference between driving an old car with 150,000 miles on it versus driving a brand new Mercedes, BMW or some other luxurious car. By testing and using dynamic headlines in all your marketing pieces (like postcards, ads, newsletters, flyers and direct mail pieces) your response can skyrocket by 1,800% and more. We will show you an easy 7-step method that anyone can use to create ads and direct-mail promotions that will bring in floods of new clients.

4. Failing to Customize your insurance lead Letters

I have had some outrageous responses from prospects and clients when I mail them a hand addressed envelope with a message pad sized ?While You Were Out? message saying, ?Evidently you didn?t get my message.? We have also experimented with several other sayings on the message sized pad ?While You Were Out? mailings that are great for annuity sales. Another agent we know uses this concept to recruit agents and has had a 75% response to his letters using the ?While You Were Out? message pad technique.

5. Relying on One Shaky Pillar for Insurance Marketing

What you want to strive for in your marketing strategy is to build strength through marketing diversity. Think of your business as a Greek Temple supported by numerous, sturdy pillars. Each of these pillars represents one aspect of your marketing campaign. For example, you could have pillars for direct sales, telemarketing, direct mail, postcards, flyers, endorsements, referrals, parasite marketing, and joint ventures. The reason that there are so many is if you have failure in one or more pillars you will always have a few pillars holding up your marketing program. We have had dozens of agents who tell us that if this home office flyer fails, they will be out of the business. This concept will almost guarantee you failure in this business. However, could you imagine the commissions you would generate if you combine a wide array of marketing approaches, stabilizing your business with several pillars?

6. Stunting the ?Growth? of Your Insurance Business

We have read countless books and attended dozens of seminars on how to increase your business. However, we have discovered just three ways to grow any business. Now you may think these techniques are too simple or don?t apply to your situation, but could you imagine if you actually implemented these as a foundation for your business?

1. INCREASE your average sale of an Insurance policy. Instead of quoting $82.00 per month round it off to $90.00 and give them more coverage.

2. INCREASE the number of clients. By doing consistent, target marketing to a niche market, you will increase your sales and client base dramatically.

3. INCREASE the frequency of repurchase. Always have other products you can sell your clients. Always contact your client at least every six months. A monthly, client newsletter will help you build your business. If you need a client newsletter check out our "Annuity Pro Lead Capture Web Page."

7. Investing Thousands of $$$ in the Wrong Insurance leads Ads

Before you invest thousands of hard earned dollars in direct mail, postcards or newspaper ads, wouldn?t it be great if you could know exactly which offer would pull in the most leads and qualified prospects?

What you need to do is conduct your own marketing test. Try mailing two or more versions of your sales letter or flyer to a small portion of your mailing lists you intend to use. One version of a letter might have a powerful headline along with a special free report titled ? 8 Secrets on How You Can Get the most Out of Your Retirement Years.? Also, hand-address the envelopes. Another version of the letter may have a different headline and different benefits. Then, after testing, you can mail the most effective letter to the entire mailing list with confidence.

By the way, if you can have your envelope hand-addressed or the prospect?s name typed on the envelope instead of using a label, you can sometimes increase your response by 15%. People today who receive an envelope with a label on it consider it junk mail.

8. Having a Poor Attitude

Having the right mental attitude will make your business work, no matter how many obstacles get pushed in your way. In any business, there will always be problems that come about and you need to address them. Deal with them immediately, and don?t wonder ?Why in the world do bad things always happen to me?? Bad things happen to everyone. Successful people just know how to work through them. For them, when they have a problem, they put on their work clothes and go to work. They don?t assume the end of the world is coming. Tony Robbins says that the definition of insanity is doing the same things you have always done and expecting to get different results.

Example: If you have been afraid to invest any money in marketing for yourself and continue to do that, your income will remain the same. If you never try to improve your sales presentation, letters or advertisements your results will remain the same.

However, if you are willing to test new marketing approaches and new products, your income will go up. If you will implement the following formula in every sales presentation, letter to your client, and advertisements you will greatly improve your income.

1. Get Attention!
2. Arouse interest and emotion.
3. Tell interesting stories that are believable.
4. Offer a reason to act?NOW!
5. Make it easy for people to take the action you want.

Remember, the most important thing you learn is to: GET PEOPLE?S ATTENTION!

9. Blaming Insurance Marketing ?Conditions? for your Lack of Success

Many Insurance agents who have failed in the Insurance business always blame someone or something for their failure or for a low income. If you want to be successful, not only in your business career but also in your life, you must own up to your shortcomings and realize that your success, or lack of it, is totally, 100% your responsibility!

Have you ever heard anyone, including yourself, say the following: ?It?s a slow time of the year. I think I?ll put more effort in my business after the first of the year. I?m really busy right now. I don?t have time for any new products or marketing techniques. I can?t afford to hire a secretary to do the $8.00 an hour office work that I?m currently doing myself. I tried an ad or flyer once and it didn?t work!?

All of these lame excuses are justification for not being more successful in the Insurance business. From this day forward, stop making excuses and start making things happen for yourself.

10. Not Offering Additional Insurance Products and Services to Your Customers.

It is a known fact that existing clients are far more likely to purchase from you than cold prospects. They will, at least give you a few minutes to offer additional services. Unlike prospects, your clients should trust you and enjoy doing business with you again. However, you must treat your clients with respect and they must be satisfied with your service. If you can provide your clients with the proper service, they can reward you for a lifetime with additional business and qualified referrals. Now let?s talk about specifics.

Many of you have clients or their friends who may be interested in alternative financial products that are safe and pay an excellent rate of return on their money! If that is true for you, our office can help you with several products you can use as an alternative to CD?s and Annuities.

Do you think if you mailed out a postcard offering a special report titled, ?10 Deadly Mistakes Most People Make when Planning for Retirement and How to Avoid them,? some of your clients might respond to this postcard and request a copy of the FREE report? Do you think some of the people who receive your FREE report, (which are essentially sales letters) might want to come into your office for an appointment to discuss these issues? Of course they will and when they do, guess whom they will ask to help them.

It should be obvious by now that if you had additional products or services to offer your clients, a percentage of them will want to hear about several of your new products.

Hope you have a great selling year in 2007.

Russ Jones
Creator of the "3-Step Postcard System"
http://www.ultimateinsurancesystem.com
Developer of the "Annuity Pro Lead Capture Web Page System"
http://www.pmrsystem.com

Medicaid Qualified Annuity, Buyer Beware and Agent Liability

2008-05-09T22:54:00.000-07:00

The need for some clients to protect assets from Medicaid Spend down is obvious. It can be because of the well spouse?s needs, a handicap child or a myriad of good solid reasons. This is where the annuity salesperson come charging to the rescue.

Most agents know that certain types of annuities can avoid spend down and can provide protection for the assets in the annuity. These annuities have specific language to make them fully qualified under Medicaid rules. Most annuity contracts DO NOT contain the language to qualify for the Medicaid rules.

The monthly payout must be for the life expectancy of the annuitant. The annuity cannot have any free look in the contract and the value of the annuity is agreed by all parties to be zero. The only value of the annuity is the monthly income. These features are actually part of the contract and are allowed by 29 states in the US. It is sometime referred to as the ?name on the check rule.?

The personal liability comes into play when an agent does not fully understand the rules nor the process that must be adhered to in order to qualify the funds. An agent will sell ?just an annuity? explaining to the client the funds are safe from spend down. You have to ask yourself why would this happen? The reason is obvious, large commissions.

Commissions for the Medicaid spend down annuity are often very low while the commissions for a standard annuity are usually much higher. The agent will sell the concept of the annuity but provide a product that will never qualify for Medicaid spend down. This is where the liability issue comes to the surface. Of course by then the agent could be on to a different career or the obvious answer is ?I didn?t say that.?

At the time of need the client could be faced with additional stress and maximum exposure to exposed assets. This creates a very unfair situation for the client and the agent is almost never left holding the bag. Then of course there is this sales pitch and explanation.

Recently I ran into a situation where an annuity agent had sold a 17 year surrender contact to a widow aged 77. She was told that the annuity would protect all her assets and she could leave those assets to her children. In a couple of years she became ill and was in need of nursing home car and the annuity was the primary asset. Of course as a single person there was no way to protect the funds in the annuity and with the children, I called the agent. His reply was amazing, he said he knew the annuity was not going to be Medicaid qualified but it was not his problem, it was his ?errors and omissions? problem. He knowingly sold the product for the monstrous commission and had calculated the insurance company would make things right.

The client had to eventually cash in the huge surrender penalty annuity and suffer the losses. She was ill and not up to a fight with anyone and just wanted to be left alone.

The shame of this story is as annuity salespeople we are all considered guilty by the actions of a few. So here is my advice.

? Always work with an attorney who specializes in Medicaid planning

? Never call yourself a Medicaid specialist

? Never give legal advice

? If you sell a Medicaid qualified annuity make certain the contract will work in your state, ask the home office, they are there to help

And finally, be honest and open. Make certain the prospect understands exactly how a Medicaid Qualified Annuity works and how the benefits directly affect them and their personal situation.

Bill Broich is a 30 year annuity salesman who helps agents generate annuity leads. Visit his website to learn more - Annuity.com.

Use The Adwords Miracle To Get More Annuity Leads

2008-05-09T01:00:00.000-07:00

Working with insurance agents over the years I have found one commonality? they fear technology. Of course, not all do, most of you reading this online article probably don?t? but in my experience I find fear of technology generally to be true. Some agents I work with still refuse to use email.

What they?re missing out on is an abundance of fresh, precision targeted leads that can only be found on the web.

I?m not talking about banner ads or pop-ups ads or email spam, which are so broad that they are rarely effective. I?m talking about keyword advertising. While there are many places to purchase keyword advertising Google?s Adwords system is by far the best. So what is keyword advertising? When you type in a search phrase, annuity leads for example, on Google you will be presented with one page displaying two types of similar results.

Organic:

In the center you?ll find organic results, organic being that the sites did not have to pay to be listed. They?re simply relevant to the search phrase.

Paid:

On the right hand column and directly above the middle results you will see other relevant results in boxes. Those are paid results. Companies pay by the click and bid against one another to be listed there.

The magic of keyword advertising is that you can target your ads directly to what people are searching for. If somebody types in annuities they are looking for annuity information. If they type in annuity agent Spokane, Washington for example, it?s obvious they are looking for a representative in the Spokane area to discuss annuities with. If somebody types in targeted phrases such as these the chances of converting the search to a lead are far, far greater than if somebody is perusing a general website and happens to see a banner ad for annuities. Make sense? In other words, people are looking for you.

Google charges by the click. Depending on your website, landing page and offer you can acquire reasonably priced leads. One offer I ran on Google averaged out to about $7.50 per lead. I converted roughly one in twenty-five to a sale. I made huge returns on my investment and the people wanted to see me. I did not have to sell anything? they were already in the market to purchase an annuity and I simply walked into their line of vision. Easy.

Now here is where the fear part comes in. How do you use Google Adwords? I?m not going to lie; it can be complex, especially if you?re inexperienced with internet advertising. I do not have enough space here to explain all the ins and outs. There can be a lot to it and the last thing I recommend is learning the hard way. You can lose a lot of money fast. To make it easier for you I read several e-books on the subject of setting up, running and maximizing adwords campaigns and the very best, most comprehensive book is Adwords Miracle. This book is not targeted to the insurance industry? it?s actually targeted toward affiliate marketers, but it is entirely useful and the same tips and tactics apply to our industry. In your mind simply substitute affiliate marketing with annuity marketing and presto, it?s 100% relevant.

The book is on the spendier side but with this you truly get what you pay more. You will save the money you spend on Adwords Miracle in the first week of running adwords. The book even covers landing pages and how to build in triggers to get higher conversion rates, which makes it truly invaluable. I heartily recommend Google?s Adword?s system for laser-targeted lead generation and Adwords Miracle as a map to get you there.

Bill Broich is a 30 year annuity salesman who helps agents generate annuity leads. Visit his website to learn more - Annuity.com.

Think Of Gathering Instead Of Accumulating For Annuity Sales

2008-05-08T01:19:00.000-07:00

Client Gathering

Our goal is to extend our marketing effort with new relationships. These relationships should be with agents who have experience with selling products in the senior market. This vision is to build an interactive client base through the process of client gathering.

Client gathering is much different than client building which is a term associated with large career life insurance companies such as New York Life, Prudential etc. Client Building was a concept by which the agent grew with the client and as the client increased net worth and insurance needs changed the agent was there to provide the insurance products. Studies have shown that this concept when followed to the end would have provided a relationship with 7 direct sales and 20 indirect insurance sales over the course of the agent?s career. This type of selling is arduous and expensive plus it is not especially profitable. It is however profitable for the insurance company because it allows for the careful spacing of different age brackets of the insured. The agent in effect has used his career and effort to make certain the insurance company has hedged itself against changes in attitudes by a single person by spreading out the risk over many different people.

Client gathering is much different. Client gathering is collecting people at the end of their careers when their accumulation process is ending and the need for stabilization becomes the goal.

That is what we do, stabilize.

Everyone at one some time of their lives needs to run to safety. Safety falls into three possible categories.

? Banks or financial institutions
? United States Treasury
? Insurance Company Annuities

Our goal is to assist the client into repositioning their assets into the most stable positions while earning the best possible yield. This is done by educating the client on the benefits they will enjoy with each of these products.

The process of education centers on understanding how the client feels about their life and how their assets could be used to accomplish their goals. By understanding how a prospect feels about their personal assets allows us to determine exactly how safety and security can play a part.

When a prospect decides that safety is the more important goal with their finances then providing stabilization becomes the most important agenda.

Stabilize for safety.

Bill Broich is a 30 year annuity salesman who helps agents generate annuity leads. Visit his website to learn more - Annuity.com

Generating Insurance And Annuity Leads Using Squidoo Marketing

2008-05-07T04:31:00.000-07:00

Heard of Squidoo? I?ve only been using it a few weeks, but the website has major buzz and justifiably so. The site is an incredible marketing tool. Basically it?s a web page builder? You can build what they call lenses which are simply web pages. Your lense can be about any topic you choose. It could be a professional bio, an article about insurance, maybe you want to review an annuity product or you simply want to show off pictures of your grandkids or pets.

You?re probably saying, great. I can build webpages. Big deal. What you really want to know is how Squidoo can help you get more leads and make you more money. When you setup a Squidoo lens pick search engine key words and phrases people are searching for. You can get a general estimate of keywords people are plugging in on the search engines and how many searches a word or phrase gets every month by using this keyword tool.

Type in annuity here and you?ll see the number of monthly phrases and other related keywords.

These constitute the number of searches performed on Yahoo. Google tends to run 50-100% higher. Plus you have engines like MSN, AskJeeves and the others which provide even more searches.

If ?Annuity? is the key phrase you?d like you would want to attempt to secure www.squidoo.com/annuity. Granted that?s a highly desirable word and (I?ve checked) it?s already taken. But why not secure phrases close to your area? why not grab.

(Note: For some reason unclear to me the Yahoo keyword tool only returns singular words. That doesn?t mean there aren?t plural searches as well? don?t discount plural words and phrases because there doesn?t appear to be searches.)

Google and the other major search engines love Squidoo and tend to rank Squidoo pages very high on their search results. If you get a good ranking and take the time to write useful, original copy with your contact information you will likely pick up leads.

Squidoo is fairly straight-forward and easy to use, but it can take a while to learn. I ended up reading a short very well-written manual to help me navigate the Squidoo system. Check it out: Squidoo Marketing

Squidoo is just another tactic in the neverending quest to obtain leads. It should be a part of a comprehensive annuity lead generating and selling system, not used as the sole method for attracting new business. The best part about Squidoo is that it costs you nothing. It's 100% free to use.

Bill Broich is veteran annuity salesman who helps agents generate annuity leads and close more sales. Visit his website for more information: Annuity

Annuity Marketing Tactics To Sell More Annuities

2008-05-05T23:57:00.000-07:00

I mean it, selling annuities is the easiest sale in the insurance industry. It is all a matter of positioning and having a focus. The focus is simple: numbers. Having lots of people to see and tell the annuity story to is the secret. Leads and lots of them is all that it takes.

Insurance agents all have one thing in common, who can I see today? Many agents even have such a fear of not having anyone to talk to that it makes them almost paranoid. The solution is very simple, do more marketing. Remember, it is all about numbers.

Here is how to do it. Decide on a target market such as seniors age 65 and above as an example. Your target market can be almost anything such as any age group, any income and any asset level. Once you have located your target market then place your marketing plan in motion.

The marketing plan can be built around many different approaches so for the sake of simplicity let?s use direct contact (direct mail.) With your selected target market decide on a subject that will be of interest to this group. A sample topic may topics like this:

? Reduce your social security taxable income
? Protect your assets from nursing home expenses
? New rules regarding your IRA and how to reduce taxes
? Avoid probate cost for your heirs
? Etc. Etc. Etc.

Next select a service to do the marketing so the actual work is outsourced. Numerous choices are available and trying several will help you select one which fits your geographical area and personal approach. A simple Google Search will locate several choices but my personal favorites are (America?s Recommended Mailers, Kramer Mailing Services and Russ Jones)

Next do this, mail 5,000 mailers a month for a solid year. Do not stop and do not evaluate the program for the whole year. Be focused and do not quit. The cost will be approximately $1,300 a month and you should expect a return of about 2%.

Take the expected returns of 100 leads and have a professional telemarketer set your appointments (cost should be about $10 and a little spiff to her/him will go a long way, start small and bonus). If averages hold, you can expect approximately 40 quality leads a month or an average of 10 a week. The leads that you are unable to see place in a drip system and have your telemarketer recall every 2 months for a year. Working 10 quality leads a week for the work year will provide you with 1 (one) sale and the drip system will provide ? sale every other month.

The total sales you should make is 52 plus 6 from the drip system for a total of 58 a year. Next calculate your average premium per sale and for this you may use the industry average of $37,000. Multiply the $37,000 times the 58 sales and your total premium will be $2,146,000.

Multiply the premium ($2,146,000) times the average commission of 7% (varies and should be higher) and your gross income will be $152,220. Now subtract your cost of leads (12 months times $1,300 = $15,600) from the gross income and that will leave you a net income after sales cost of $136,620. You also need to average in the cost of the telemarketer and that will depend on your personal situation but a good rule of thumb should be $500 or so a month.

An annual income of $136,620 will place you in the top .6% of income earners in the United States. And it is all done with a simple process based on numbers. One important type is this; throw away the leads that you cannot reach and those who want to be contacted later. By throwing away the leads will set you free, truly.

There it is, simple, easy and totally manageable. Oh, one other thing, it is very profitable.

Bill Broich is a 30 year annuity salesman who helps agents generate annuity leads. Visit his website to learn more - Annuity.com

Annuity Marketing Through Gender Separation

2008-05-03T01:48:00.000-07:00

These are really interesting when you break them down. The differences between how men and women look at life. Here are some thoughts.

REMOTE CONTROL. Female.... A device for changing from one TV channel to another. Male... A device for scanning through all 375 channels every 5 minutes.

COMMUNICATION

Female... The open sharing of thoughts and feelings with one's partner. Male... Leaving a note before going drinking with the guys.

Gender selling, is there a different approach? Here are my experiences: Selling annuities can also be separated based on the gender of your prospect. If you are selling to a single female (senior) safety and security is at the top of the list and trying to sell indexed annuities is not a good idea.

Single men are much the same way, generally safety and security is important and I have found that single men are always interested in how much of a monthly income they receive at some future point in time. Single females don?t seem to have this concern.

Now put them together and a whole new chemistry is developed. The male always wants to know how much can they make and to the female it is less important. In a married couples situation an indexed annuity almost always will win and it may have something to do with the hunter/gatherer/nest builder syndrome.

I am not being sexist here, but based on my experiences, men are hunter gatherers and women are nest builders. A nest builder goes through three stages, build the nest (early family), keep the nest tidy (family years) and clean out the nest (later in life).

So it is important to sell to the situation, married couples will almost always have an interest in indexed annuities because of the thoughts and needs of the male. Focus on upswing and yield as a benefit.

? Single females will almost always want safety and security and would not be a good target for an indexed annuity. Focus on safety and security.
? Single males will always have an interest in future income so focus on the benefit of annuitization.
? Married couples will almost always have more interest in how the money can grow. This can always be accessed by who is talking the most. If the husband talks the most then it is an indexed annuity sale. If it is the wife talking the most, then safety and security is the benefit to focus on.

By separating sales concepts via gender separation will in fact provide you an edge in selling annuities. Whatever you do always focus on the benefits an annuity can provide and how those benefits can be of use to your prospects.

Bill Broich is a 30 year annuity salesman who helps agents generate annuity leads. Visit his website to learn more - Annuity marketing

Secret Phrase for Annuity Selling

2008-05-01T01:06:00.000-07:00

Selling annuities and being able to sell tons of them boils down to a simple concept, being polite. We all want to be nice and want people to be nice to us but being polite is different. I have used this concept for my entire sales life and not only does it work but it becomes the basis of a business plan that is not taught in business schools. And yet it is the full basis for any successful relationship, be polite. How do we use it in our business plan to convert it to sales. If you are basing your sales efforts on building relationships then you are not an annuity salesperson, you are an order taker, an amateur not a professional. How do we begin this process? We do it by learning an very important phrase. A phrase that will transcend your selling efforts to actually becoming a salesperson. What is that phrase and how does it help you to become more successful? The important phrase to learn is ?would it be a bother?? Would it be a bother? What is this actually saying? It is saying may I have permission. It is saying I am polite. It is a link from one subject to another and a powerful tool to change and control a relationship. It does have some limitations and those limitations have to do with your desired target market. If you are working with people who were in their early 20?s during the Korean War, World War II and older as a target market, this is complete power. This generation operated on the premise of ?politeness? ?Would it be a bother? Is based on being polite and can bridge any two subjects and allow you to dig deeper into the relationship. Try this?.?I know Mrs. Jones that you are not in the market for my services but ?Would it be a bother? if I can over this afternoon and just introduced myself?? Dead mortal cinch she will say yes?if she is in this target market age group. You are really asking permission to change a relationship from looking at you as an outsider to one where you may become a friend. ?Would it be a bother? is a bridge from one topic to another and a method to explore more fact finding questions and to seek answers based on how your prospect actually feels. Adopt this attitude into your selling and it will become part of your life. Being polite is the secret of developing suspects to prospects to clients. Once a relationship is developed on being polite almost any question can be asked. With the freedom to ask feeling questions begins the basis of selling annuities. ? Politeness ? Feelings ? Relationships ? Suspects to prospects to clients. It is this approach that sets the true professionals form the rank amateurs. Amateurs make $5ok a year; professionals make $5ok a month. Learn this approach and join the ranks. Bill Broich is a 30 year annuity salesman who helps agents generate annuity leads. Visit his website to learn more - Annuity Selling

More Bottom Life Profits by Hiring a Specialist to Evaluate Your Annuity

2008-05-01T01:03:00.000-07:00

While watching golf on TV the other day I was inspired by the name on the hat that Phil Michelson wore. I Googled them and found out they were business consultants. Their expertise was consulting with medium to large companies to evaluate their business practices and to locate bottom line methods to increase profit. I thought how in the world did I miss this for my little annuity business.

I hired a business consultant to look at all aspects of my business and help me make better business decisions so I can be just like GM, Boeing and United Airlines. The overall cost was a little more than $5,000 and I spent about 2 days answering questions and filling out questionnaires. All the information was entered into their computer and it must have cranked on it for at least a day. The report was mind-blowing; things I had never even considered were introduced to me.
They had evaluated all my expenses and the bottom line were these ideas.

? Send E cards and save on postage.
? Buy all my stationary in bulk based on a 12 month need.
? Use only ATMs that have no fees.
? Cancel magazine subscriptions and use the internet for my news.
? Cancel my whole life insurance policy and replace it with term.
? Make my 2 employees coshare their health insurance cost.
? Cut back on Starbucks and make coffee at the office, quit going out to the coffee shop.
? Buy copy paper in bulk one pallet at a time and make the stationary company store it for me until I need it

I read all 99 of their suggestions and thought... not no, but Hell No!

Who wants to live like that? Who wants to be that extreme. What should I do if I want to have a better bottom line? It was very easy, see only 10 more people in a year and this will result in 1 ? more annuity sales. Based on my average care size of $77,000 this would provide an additional $10,000 to my bottom line. Only 10 more new seens a year! How simple is that?

Here is my plan for expense reduction?.DON?T!!! Life is way to short for this type of bottom line drive.

When your whole focus is on reduction and not sales you become very negative and not proactive. We are annuity salesmen and we need to be active and proactive.

One terrific tax benefit I did receive from my consultant, I got to write off his consulting fee. My attitude is that it is much simpler to sell than to reduce.

Bill Broich is a 30 year annuity salesman who helps agents generate annuity leads. Visit his website to learn more - Annuity.com

#BREAK# #TITLE#Attention Annuity Salespersons - Control Your Own Destiny#/TITLE#

Sales organizations love to sign you up. Contracting you is one of their greatest joys and why shouldn?t it be. You do the work, you invest your money and they get the cream of the overrides. What do they invest in you?Oh yes I know?.Service! In my book, service is a synonym for greed.

Answer these questions:

? How many times have you had an annuity marketing company attempt to recruit you?

? How many telephone calls and emails do you get each week from annuity marketers?

? How many times has a marketing company offered you free leads as an incentive to contract?

? How many times has a marketing company offered you their ?secret? CD to learn what how the big boys do it?

Insider Secret Number 1:

You control your contracts Here is my very first rule and one I hope you will adopt. Get a pre-release letter! When you contract with a marketing company they forget to tell you about being released in the future!

? What if your situation changes?

? What if you found a marketing system better suited to your personal situation?

? What if you wanted a change?

? What if we did not satisfy your marketing needs?

? How do you get released?

Do not become a slave to your FMO, demand the pre-release, they all will do it!

Insider Secret Number 2:

Most annuity sales marketing organizations do not know how to sell annuities. It is the old saying.. Those that can?t sell, TEACH!

Learn how to sell annuities and how actually market yourself and your business from ?those that do.? This is an easy topic to check out, just ask your FMO how they would make a sale in a specific situation and their answer is always based on product. Try it and see for yourself. If you are committed to working with an FMO, also hire yourself a coach, one who has sold and who can sell. This is the very easiest direction.

Insider Secret Number 3:

Insurance company products are designed for only one reason, to maximize profit to the insurance company.

The newest, latest and greatest annuity is just a new wrapper around the same old product. The insurance company buys bonds to guarantee the performance and no matter how you look at it, the yield and the annuities are all in the same arena. Just more sizzle. If you chase the new products you will be just that ?a chaser.?

Chasers never build a practice, never have anything worthwhile to sell to their clients other than the newest wrapper on the same product.

Be different! Sell annuities based on the benefits they can provide to the owner. The real reason to buy an annuity is not based on yield but on benefits.

Learn these secrets and do as much for yourself as possible. Rely on the FMO as little as possible.

Bill Broich is a 30 year annuity salesman who helps agents generate annuity leads. Visit his website to learn more - Annuity.com

How a Blind Annuity Insurance Agent Tripled His Income in Just 90 DAys

2008-04-08T02:12:00.000-07:00

Had a phone call from an agent who said that by following these five marketing strategies he went from being blind about marketing to tripling his annuity production.

Check it out...

1. He was blind to the fact that he needed a good quality mailing list to use when he mailed out a series of postcards he received from our marketing system. In fact by following our "3-Step Postcard System" and mailing a 1,000 to 1500 postcards every week his production increased.

In addition, he found by mailing the same prospects at least three times over a three month period his response increased.

2. He was blind to the marketing fact that he had a horrible phone approach and door approach that cost him sales. He took our advice and by using just three key words he was able to set two appointments for every six seniors called who had received his postcard, but never responded to his 800 number or website he placed on the postcard.

These three magic words I've tested for years and I could personally call in the morning just six seniors (preferably widows) and I would have two solid booked appointments for the afternoon.

3. In addition, he learned in my marketing system that he was blind to how to approach prospect at their door. I gave him a door approach that I used when I was full time in the field working that allowed me a 65% in the house ratio for the initial interview. He used this approach with the people who he mailed out the postcards, but never responded to his request for a free report, or a benefit kit.

4. And that's not all...he was blind to the fact how important it was to stay in touch with his current client base on a monthly basis. He uses both our Annuity Pro Lead Capture Web Page and monthly Client Newsletter to stay in touch with his clients.

5. And here's the kicker...he started using our referral technique that gave him an average of three referrals on every appointment.

You will slap your forehead when you learn this technique.

The above five steps allowed this agent to average three solid appointments per day and literally triple his annuity production.

You can read more success stories and also my story how I was a lead junkie and always had 50 new leads a week in my shoebox on my front seat.

Go forth and prosper,
Russ Jones
http://www.ultimateinsurancesystem.com
http://www.PmrSystem.com
http://www.89Million.com (new)

Want More Annuity Sales Leads? Use a Pitch Book

2008-03-30T22:28:00.000-07:00

A ?pitch book? is a short explanation about what you do as a salesperson and a brief insight into our industry and our products.

My pitch book changes constantly as situations in the financial marketplace change but it is always the same. It tells the prospect about me and our industry. I like to keep it fresh and always in movement as situations evolve. This business is very competitive and keeping a pitch book fresh will have an impact on your ability to build relationship quickly.

Here are some tips to building and managing a successful pitch book.

A historical perspective of the past is important. If you are an annuity salesperson then show how annuities have helped so many people in the past. Connect the past to the present with human evolution such as ?Did you know that Benjamin Franklin owned annuities??

A nice touch is to relate the American economy with the possibilities of the future. This allows for your prospect to relate to their present situation w by viewing a longer period of time such as 1950 to 2000. The Dow Jones Industrial Average and the S/P 500 can be very persuasive in making this point.

A good point is to show how world events can affect the financial markets and by showing the possibility of a downside will strengthen the overall presentation. This allows the prospect to understand that there can be times when investments may become more volatile and that a plan that stays the course is a plan that will work over a long period of time.

Third party information is essential. By referring to another source will show credibility to you. These can be newspapers and magazines that are relevant and allow their use.

Explain the process about how you work and the time frames and the steps to working towards a goal. Try and place the client into understanding how this process can be personalized to his situation.

Fully explain your services and what the prospect may expect from you. I always include a list of references in my pitch book and I always give my book to the client as a first meeting gift. If possible package the book in an upscale manner so that your prospect fully understands you are a professional and you expect to be treated that way. By setting the stage in this manner you will remove many obstacles that will appear during the final sales process.

1. Describe how any unique features of your approach that are aided.
2. Close by showing samples of what your thinking might look like if it were pulled together into a plan or specific portfolio for today.

A good pitch book helps point out what you have to offer, how it's different and what you hope to accomplish. Your pitch book will set you aside from other salespersons and by taking the extra step in content and packaging will take a huge step in making your prospect your client.

Bill Broich is a 30 year annuity salesman who helps agents generate annuity leads. Visit his website to learn more - Annuity.com

Successful Annuity Selling by Becoming a Barber

2008-03-28T22:21:00.002-07:00

Have you ever considered the experience in getting a haircut to the marketing of annuities? They are very similar in the process.

Many agents call me and want me to help a specific case with all sorts of contingency issues. The agent wants to make the sale and if he could get some help on a certain point then the prospect will surely buy. Generally this is a situation where the issues are not as clear and the agent thinks. My experience has shown that resistance to buying is based on one thing?a lousy fact finder.

When I encounter this issue in my own practice and a prospect I think should buy will not then I just use the ?barber syndrome.?

NEXT!

It is so much easier to move on to another sales situation than to beat a dead horse to death. Put your energies to work in marketing and finding new prospects than worrying about one prospect. If they haven?t bought after you presented the solution developed in the fact finder?they are never going to buy from you.

The idea of firing the prospect and moving to the next one is totally liberating. It puts you as the salesperson in control and makes the business model work so much better. Our products are not for everyone and our prospects situation can never be put into a prefabricated mold. By retaining control over who you do business with gives you an attitude of control and professionalism. Do not be afraid to fire a prospect and move on. There is always someone else to see and someone else to tell our story too.

Next!

Bill Broich is a 30 year annuity salesman who helps agents generate annuity leads. Visit his website to learn more - Annuity.com

Close More Annuity Sales Leads

2008-03-28T22:21:00.001-07:00

Most agents lose tons of sales because they are so obsessed with talking they forget to listen. They need to tell all about their products features and how great it all is. They can never wait to make their point about how much an annuity can yield. Product Product Product.

The problem is simple, the prospect just doesn?t care. The features of an insurance product are secondary and nothing more. Selling product features makes you an amateur. If you want to be an order taker, go to work for the bank, that is what the tellers do, follow and take orders. Focusing on the ?selling of the product? is what bank clerks do, fill an order.

How do you set yourself apart? Listen and focus on what the prospect is saying because they will always tell you how they feel. Once you understand how they feel then you can provide a product that fits their needs. It is such a simple process, listen and quit talking.

It couldn?t be simpler or more difficult. We all want to talk when in fact listening is a far better way to sell. By asking simple probing questions that elicit a feeling answer is how you place the benefits of the product in line with the feelings of the prospect.

A very simple method of ?feeling? selling is basing the sale on building the relationship. This is easily done by using a track to run on. I prefer a fact finder one in which I can follow a script with the questions in order.

Ask yourself, am I an amateur or am I a professional? Professionals develop relationships based on client needs and amateurs spend their time talking and selling products. Professionals focus their time learning their client needs compared to amateurs who use the sales approach. It is not about the products, it is how the benefits of the product can fill the needs of the prospect. The more questions that can be asked and answered will build the relationship the quickest.

Listen, probe, question?sell.

Bill Broich is a 30 year annuity salesman who helps agents generate annuity leads. Visit his website to learn more - Annuity Sales Leads

The Most Powerful Annuity Lead Farming System

2008-03-27T22:13:00.001-07:00

The Most POWERFUL, Annuity lead MONEY-MAKING Farming System You Will Ever Use.

This is probably the MOST POWERFUL FARMING METHOD you will ever use for getting clients. AND, this one strategy should pay for your course at least 30 times over within your first 3 MONTHS!

One Insurance agent farms an area with a single letter, then follows up with a phone call to a list that has been scrubbed for the ?Do-Not Call List.? 9 times out of 10 the prospect doesn?t remember getting his mailing. Does this sound familiar?

Most agents complain they lose money on mailings like this. Aside from the wasteful ?image? marketing we?ve been duped into believing works, you will generate anywhere from 100% to 500% more response when you use a ?multi-step? farming sequence rather than a single step.

What is multi-step? Simple. Instead of sending simply one mailing, send several mailings in a timed sequence. And by all means ? STOP using the wasteful ?image? farming most agents. The only way you will get the response you?re looking for is to use ARM farming methods.

And if you don?t think multi-step isn?t more profitable for agents, think about this: Let?s say you create a farming piece, and send out 500 letters costing $.50 each. That?s $250. 9 Times out of 10, you?ll get less than a 5 responses. Now your not very happy.

Now, let?s say you decide to mail the same 500 pieces, but with a 3-step multi sequence. This time, you?ll spend $250 X 3 mailings = $750. But because of the effectiveness of multi-step farming, your chances of getting a half dozen new clients are up 500% or more. If you get one annuity sale for $100,000 and your commission is $8,000. Would you spend $750 to get $8,000. Work the numbers. This method works and will continue to work for years to come.

The bottom line is this: AS A FINANCIAL ADVISOR, IT WILL ALMOST ALWAYS MAKE MORE ECONOMIC SENSE TO USE MULTI-STEP A.R.M. FARMING, VS. THE WORTHLESS ?IMAGE? FARMING WE?VE ALL BEEN TAUGHT TO USE.

Here?s how the sequence works:

Letter # 1: Send out on DAY 1 (remember to test a small quantity before spending a lot of money on something ?unproven?!)

Letter#2: Sent out 1 week to 10 days AFTER letter one is sent. You?ll also note that letter 2 refers to letter 1 in its introduction.

Letter#3: Sent out 1 week to 10 days AFTER letter #2 is sent. It also refers to letter #2, and frequently has a ?FINAL NOTICE? headline in it.

You can continue this sequence for as long as it?s profitable for you.

Go forth and prosper, Russ Jones http://www.ultimateinsurancesystem.com http://www.PmrSystem.com http://www.89Million.com (new)

Annuity Selling Tip - Sell to Feelings and Build the Relationship

2008-03-26T23:15:00.000-07:00

I read a new book recently called Secrets to Social Success about how people interact socially and this quote was at the beginning and it sort of stunned me because it is the basis of how I sell annuities.

?The deepest principle in human nature is the craving to be appreciated.? -- William James

I have long believed that selling annuities is about knowing and understanding how people feel. Once you know how they feel it is possible to probe deeply into their personal life and their finances. This goes hand in hand with the need to be appreciated. Appreciation is understanding how another person relates to you, themselves and their surroundings.

Another famous saying is from Dale Carnegie:

?You can make more friends in two months by becoming interested in other people than you can in two years by trying to get other people interested in you.?

Selling annuities is just that simple, being interested in another person enough to fully understand how they feel. The problem of course is how to bridge the gap from a new acquaintance to understanding how another person feels. That is the ?Art of the Deal.?

Selling annuities is learning the art of asking the right questions in order to solicit a feeling response. There are several ways to do this but my favorite has always been to ask someone what they hoped to accomplish and then expanding on that answer. Once someone tells you how they feel it opens a door to ask more and deeper questions that always lead you further into the feelings of the prospect.

In one sense you are really becoming friends with the prospect and the temptation to do so should be restricted. Selling product allows you to have a relationship of counselor/client but deepening into a relationship can be financially awkward for both participants. Remember, the secret to selling anything (annuities) is to understand how someone feels and how our simple products can bring benefit to their lives.

Bill Broich is thirty year annuity salesman who helps agents generate leads and sales. He blogs frequently about the insurance industry and selling. Visit his website for more information: Insurance News

For more tips on creating social success in business and your personal life visit Secrets to Social Success

What Really is a Death Benefit in a Variable Annuity?

2008-03-26T23:14:00.000-07:00

Let?s talk about the basics first. Variable annuities allow the owner to invest in a wide range of options. These options can include stocks, bonds, real estate and a guaranteed fund. The investments are not mutual funds but a close family member called sub-accounts. The money is managed by the manager of each sub-account in accordance with the goal of that account.

Fees and More Fees

Variable annuities are noted for the fees they charge. The average annual expense on variable annuity subaccounts currently stands at 2.08% of assets, according to Morningstar. Many variable annuities also have loads on their subaccounts, surrender charges for selling within, say, seven years and an annual contract charge of about $35.

What Death Benefit?

The death benefit guarantees that your account will hold a certain value should you die. With basic accounts, this typically means that your beneficiary will at least receive the total amount invested, even if the account has lost money. Options are available at an additional cost that will allow your death benefit to increase over a period of time (life insurance). The fees charges for this ?additional benefit? are very high compared to just buying a separate life insurance policy. If additional life insurance is needed in your financial planning it would make much more economic sense to buy a separate policy.

According to LIMRA, an insurance industry research group, only 3 out of every 1,000 variable annuities are surrendered due to death. And this report doesn't even measure whether those four accounts were made whole by the death benefit. If the variable annuities were paid with invested funds then there was no death benefit paid by the insurance company which means all the fees paid to the insurance company would never be needed. The death benefit was paid with the owners own invested assets! Morningstar has calculated the annual fee for this death benefit to average 1.03% on the WHOLE value of the invested dollars in the variable annuity.

The death benefit fees charged to a variable annuity provide a huge benefit to the insurance company because the risk they are insuring is low and over time may vanish to no risk at all. Be informed about how this death benefit on variable annuities really works.

Bill Broich helps seniors manage their retirement money. Visit his website for additional information: Variable Annuities

Flexibility In Your Annuity

2008-03-24T23:04:00.000-07:00

In any financial transaction, whether a debt or investment, flexibility should always be sought out. As with certain debt programs, there are annuities that are highly flexible.

One of the really good things about annuities as a money management and financial planning tool is that there are quite a variety of different forms that they can take to meet individual needs. One of the really good forms is the FPD Annuity. Its main advantage is, well, it is flexible. Since an annuity is a financial contract and is regulated by various laws and by the Internal Revenue Service regarding taxation issues, flexibility is an attractive option.

The FPD Annuity basically allows you to make payments into it when and if you are able to make them. There will be limitations and minimum and maximum deposit levels, but the payments are generally not on a set schedule. If you have a sudden windfall or find yourself with some excess investment capital, you can add it to your annuity. If you pass through a particularly hard period and are short of funds, no payment is necessary at all.

When the annuitization time arrives and withdrawals are going to be made, the amount of the payouts will, of course, be determined by how much you deposited into the annuity and how well it was invested by the Insurance Company that manages it. Most Insurance Companies that have these annuity plans have several different types designed to meet various retirement and investment goals. This allows even more choice for the purchaser, but also requires that he carefully review his own financial goals to be able to best determine the proper package.

The deferred part of the annuity refers to the taxation issue. As with most annuities, the earnings on the money invested are not taxed as they occur. This is a tremendous advantage of an annuity. The fact that the investment earnings are not taxed at the time they are realized means that the amount that would have normally been paid in taxes remains invested. Since an annuity is a long term investment, this means that this extra earnings saved from the tax man is reinvested and compounded over the entire life of the annuity. This can result in a substantial increase in income when compared to a normal savings account.

The only drawback of the annuity is that it does require a bit of self discipline in the individual to realize its best potential. When a person is faced with a mandatory deposit or has funds withdrawn from his paycheck for deposit into an IRA or 401 K plan, it is usually easy and painless. However, a person who is serious about financial planning and determined to make the most of his earning potential to insure security for his family and funds for his retirement can benefit from the flexibility of this kind of investment. As is the case in all annuities, your Insurance Agent will be able to guide you to the plan that is best able to meet your personal budget and goals.

Read more annuity information at UFCAmerica.com

New Medicaid Annuity Rule Enacted

2008-03-23T22:31:00.000-07:00

A small but important change relating to Medicaid annuities was signed into law Dec. 20, 2006, as part of the Tax Care and Health Care Act of 2006. It changed the word "annuitant" to "institutionalized individual" in the section of the federal statute that described annuities intended to be helpful for Medicaid planning.

So what does all this really mean? Essentially, if a spouse who is living in the community (the so-called "Community Spouse") purchases an annuity that meets all the requirements necessary to avoid having that purchase treated as a gift, that spouse must now name the state as beneficiary up to the amount of any Medicaid payments made on behalf of the "institutionalized individual" (instead of the "annuitant").

So who, exactly, is the "institutionalized individual"? Well, clearly if the Community Spouse purchases an annuity, the other spouse, who is in a nursing home, is the "institutionalized individual." As such, upon the death of the Community Spouse, if the annuity has not yet made its final payment, the state will be entitled to receive future annuity payments, up to the amount of the value of all Medicaid benefits it made and will make on behalf of the nursing home spouse.

Prior to this change in the law, repayment in the above situation would have been due only for nursing home expenses of the Community Spouse.

Example: Mary and Dan have $150,000 in assets. Mary lives in the community and purchases a $50,000 Medicaid annuity payable to her. Dan, who is in the nursing home, immediately qualifies for Medicaid, because (i) the annuity itself does not count as an asset for Medicaid eligibility purposes, assuming it is correctly structured, and (ii) Mary's remaining assets are less than $101,640, the excluded amount for community spouses (although some states only allow Mary to exclude half that amount, most states allow exclusion of the full amount).

Two years later, Dan dies. Results:

1. If the annuity pays out completely before Mary dies, then the new law makes no difference, since there is no remainder to go to the state. (This would typically be the case in so-called "half-a-loaf" planning, a topic for another day!)

2. If Mary dies before the annuity is fully paid out, then it will make a difference, because now Dan's costs must be repaid from the remaining annuity payments. Under the prior law only Mary's costs---if any---would need to have been repaid (and if Mary never went to a nursing home, then Dan's costs would never be recouped by the state).

3. If Mary enters the nursing home during the annuity payment period, those payments will go to the nursing home, since they are considered her income. If Mary then dies before the annuity is fully paid out, not only must Dan's Medicaid benefits be repaid to the state, but depending on how the new law is eventually interpreted, it's quite possible that Mary's Medicaid benefits must also be repaid out of future annuity payments.

Note that although this change was just signed into law, the law itself states that it is effective as if it were part of the original law that it is amending. Thus, it applies to all annuities issued after February 8, 2006, the date of enactment of the Deficit Reduction Act of 2005.

K. Gabriel Heiser

Attorney K. Gabriel Heiser has devoted his legal practice to Medicaid planning, elder law, and estate planning for the last 23 years.
NOTE: For more information on this topic and other Medicaid planning techniques, see http://www.MedicaidSecrets.com, which describes an exciting new 256-page book written by attorney Heiser, "How to Protect Your Family's Assets from Devastating Nursing Home Costs: Medicaid Secrets." You don't have to go broke to get Medicaid to pay your nursing home bills, you just have to know the rules and planning techniques. For the first time ever, you can learn the inside secrets of high-priced estate planning and elder law attorneys, in attorney Heiser's new book.

Charitable Gift Annuity - Immediate, Deferred, College, Flexible Annuity

2008-03-23T22:30:00.001-07:00

For some people, a Charitable Gift Annuity (CGA) is a convenient way to donate funds to an educational, religious or other charitable organization. A Charitable Gift Annuity works very similar to other annuities you might purchase through your insurance company, but in this case you will receive an annuity payment directly from the organization. Typically, you donate a monetary amount to the organization of your choice and then begin receiving payments either immediately or at a predetermined date in the future.

Donations to charities are subject to the charitable tax deduction, and you are entitled to make this deduction on your income tax return for each year you make a new donation. You can choose to receive your annuity payments yearly, quarterly, or monthly, although most people choose quarterly payments. Quarterly payments from a Charitable Gift Annuity are received on the last day of the quarter, not the first.

Similar to other annuity options, Charitable Gift Annuities are subject to state and federal regulations. The American Council on Gift Annuities (ACGA) sets uniform gift annuity rates for use by charitable organizations. These rates set the recommended limits for payout rates to the donor.

If a charity stays at or below these rates, they are not required to justify that their rates are within state regulatory laws. If the charity chooses rates above those set by the ACGA then an actuary is necessary to ensure compliance to the individual state laws. Rates are determined by the age of the annuitant and when the withdrawal period for the annuity begins.

A charity may spend a portion of a donation immediately but must retain enough money in its reserve to satisfy its annuity agreement with the donor. The agreement for Charitable Gift Annuities states that the annuitant will receive fixed payment amounts for their lifetime only and not an additional period of time thereafter for their beneficiaries.

This means that once an annuitant dies, payments cease and the remainder of the annuity is absorbed by the charity. The donor can opt to extend the annuity agreement to an additional annuitant, as with the joint and survivor or two lives in succession options, but the annuity payments will be split between the two individuals and will cease after both parties have died.

DIFFERENT TYPES OF CHARITABLE GIFT ANNUITIES:

IMMEDIATE GIFT ANNUITY

1. If you choose an Immediate Gift Annuity, payments will begin in the payment period immediately following the final contribution date. As mentioned previously, the annuitant can choose to receive payments annually, quarterly, monthly, etc. Depending on when the contribution was made, you can request your first payment to be for the full, and not prorated amount.

DEFERRED GIFT ANNUITY

2. With a Deferred Gift Annuity, the annuitant is allowed to receive payments at a future date predetermined by the donor. The date chosen must be at least one year from the contribution date, but the payout schedule offers the same flexibility as the Immediate Gift Annuity.

COLLEGE ANNUITY

3. A parent or grandparent may want to establish a college fund for a child to offset the rising cost of higher education. In this case, they would donate money for a College Annuity which will only pay out over the lifetime of the child (annuitant). Payments usually begin at age eighteen, or when the child/annuitant is old enough to attend college. The annuitant may choose payments for life or receive larger payments spread out over the number of years they attend school.

FLEXIBLE ANNUITY

4. A Flexible Annuity allows the annuitant to decide the starting date for payments. Usually the annuitant chooses retirement or another date of importance to begin receiving payments. Keep in mind that one factor for the annuity payment rate is age, so you will receive larger payments if you wait until you are older.

HOW DOES A CHARITABLE GIFT ANNUITY WORK?

You may be asking how this works in a real life example. Let?s assume you just turned seventy-five and have $25,000 that you would like to donate to your alma mater as a Charitable Gift Annuity. You opt to receive immediate annuity payments on a yearly basis, and your calculated annuity rate is eight percent. Based on your annuity agreement with your alma mater, you will receive a payment for $2000 every year for the rest of your life, and an immediate tax deduction of over $9000!

This is only an estimate, and your actual deduction will vary according to changing tax laws and changing rates established by the ACGA. You should always consult with a knowledgeable financial advisor such as Estate Street Partners before donating or investing large sums of money to guarantee your rights are protected.

Author bio - Rocco Beatrice, CPA, MST, MBA
Award-winning estate planning & trust expert
MS - Taxation, Master of Science Taxation
MBA - Management / Taxation
BSBA - Management / Accounting
CPA - Certified Public Accountant
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Irrevocable Trust Asset Protection, Medicaid Asset Protection
Private Annuity Trust
71 Commercial Street #150, Boston, MA 02109
tel: +1.508.429.0011 fax: +1.508.429.3034

Private Annuity Trust, Ensured Installment Sale (Structured Sale)

2008-03-20T22:57:00.000-07:00

Warning: As of October 18, 2006 Private Annuity Trusts (PAT) are no longer recognized by the Internal Revenue Service (IRS) as legal means for managing assets tax deferred! The Private Annuity Trust has been replaced with The Ensured Installment Sale (Structured Sale), which will be discussed later. The following information applies only to Annuity agreements funded prior to October 18, 2006, which are still honored by the IRS.

PRIVATE ANNUITY TRUST: WHAT IS IT?

A Private Annuity Trust works very similar to an Immediate Annuity, although you will use assets other than money to fund this Annuity. Typically, you transfer ownership of a home or land with high value to a Trust. The Trust agrees to make lifetime payments to you, and can then sell the asset you gave them and use the money to fund this Annuity agreement through investments.

You cannot use other retirement funds such as a 401k to fund a Private Annuity Trust, but you can add multiple properties to increase your tax break and Annuity payment. If you decide to add an additional property to your Private Annuity Trust you must create a new Annuity agreement for each property, unless your original agreement contained a provision to include additional assets at a later date.

Each new agreement will have a different deferral period which creates an added benefit to you by providing both immediate and long term income. The withdrawal period from a Private Annuity Trust must begin by age 70 ?, but you can always choose to receive payments sooner.

When structuring a Private Annuity Trust, you must name a Trustee who will be responsible for controlling the investments of your assets in the Private Annuity Trust. The Trustee can be an adult child, relative, close friend, attorney, or anyone else other than you or your spouse. By law, the annuitant is not allowed to have any direct control over the investments of their Annuity. You may make council to the Trustee but cannot have any direct contact with the assets once they are transferred into the Private Annuity Trust, and your transfer of ownership is irrevocable.

ASSETS TRANSFERRED TO A PRIVATE ANNUITY TRUST: HOW TO ESTIMATE THE ANNUITY PAYMENTS

It is fairly easy to estimate what your Annuity payments will be for the asset transferred into a Private Annuity Trust. The IRS uses the following factors to determine your payment:

1. Your life expectancy

2. The selling price of your asset

3. The Annual Federal Mid-Term Rate (AFMR) effective when your property was transferred (this rate will be the rate used for the duration of your Annuity)

4. The length of time you defer payments

Using these factors, the amount you will receive from an Annuity is a fixed amount and you cannot start and stop payments from a Private Annuity Trust. Once the withdrawal period begins you will continue to receive payments for life.

The ?life expectancy? factor is only used by the IRS to help determine what your payments should be and is not to be confused with a payment ?cutoff? age. If you live beyond what the IRS factored as your life expectancy, you will continue to receive payments for life.

JOINT ANNUITY FOR SPOUSE TO RECEIVE PAYMENTS

Owning a joint annuity will allow your spouse to continue receiving Annuity payments should you die first. After your spouse dies, payments will cease and your beneficiaries will inherit any surplus money remaining in your Private Annuity Trust created by wise investment options of the Trust?s reserve.

By law there must be enough money set aside for the Trust to fulfill its Annuity agreement with you, and there will usually be a reserve account established of five to ten percent of your asset?s value as a safety precaution. Remember, your Annuity payment is fixed and will not increase regardless of profit your assets create via the Private Annuity Trust.

NO ESTATE TAX, INCOME TAX OR GIFT TAX ON PRIVATE ANNUITY TRUST TRANSFER

When you establish a Private Annuity Trust, you are not subject to estate, income, or gift taxes. The transfer of ownership of an asset to a Trust is ?paid for? by the Annuity agreement. The IRS cannot accurately determine your life expectancy, and therefore cannot determine how many payments you will actually receive.

Taxes will be deferred on the transfer until you start receiving payments, and a portion of your payment will be taxed based on your income amount. The transfer of ownership involving your assets is not considered a gift to the Trust because they are agreeing to pay you for the asset at a later date, and as a result you will not have to pay a gift tax.

Once your asset is transferred to the Trust, it is removed from your taxable estate. This is of particular benefit to your beneficiaries who will not be held responsible for paying estate taxes when they receive excess funds from your Annuity. After your death it is the responsibility of the Trust to cover any unpaid taxes due on the assets.

ENSURED INSTALLMENT SALE (STRUCTURED SALE)

The Ensured Installment Sale was developed by the Allstate Insurance Company in 2005 and works in a similar manner to the Private Annuity Trust. The major difference between the two is that when you sell your assets, the Annuity is purchased directly from an insurance company. The insurance company, and not the Trustee for a Private Annuity Trust, is responsible for making investment decisions and ensuring you receive Annuity payments for life.

Author bio - Rocco Beatrice, CPA, MST, MBA
Award-winning estate planning & trust expert
MS - Taxation, Master of Science Taxation
MBA - Management / Taxation
BSBA - Management / Accounting
CPA - Certified Public Accountant
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Irrevocable Trust Asset Protection, Medicaid Asset Protection
Charitable Gift Annuity
71 Commercial Street #150, Boston, MA 02109
tel: +1.508.429.0011 fax: +1.508.429.3034

Tax Sheltered Annuity TSA 403b - What is It?

2008-03-19T23:19:00.001-07:00

Tax-Sheltered Annuity (TSA), also known as a 403(b), is an alternative retirement savings plan. Not everyone can participate in this plan, and it is restricted to those who are employed by educational, cultural, or non-profit organizations such as religious groups (also known as 501 (c)(3) organizations).

TAX-SHELTERED ANNUITY BENEFITS

Contributions to a Tax-Sheltered Annuity are done through a payroll deduction and are therefore taken out pre-tax. This feature of a Tax-Sheltered Annuity is very beneficial since your contributions are not seen as income and you may pay less federal tax at the end of the year. A Tax-Sheltered Annuity is also tax deferred during the accumulation phase. This means you will not pay any taxes on the amount you contribute or the interest earned until you begin the withdrawal phase.

If your plan allows, you may elect to contribute post-tax money to your Tax-Sheltered Annuity by using your paycheck. Any money you contribute post-tax must be declared on your income tax return and is not subject to the tax-deferred exemption. When selecting a Tax-Sheltered Annuity you may choose between fixed and variable, or a combination of the two.

It is possible to take loans from your Tax-Sheltered Annuity, but these loans are limited to the lesser of $50,000 or fifty percent of your vested amount. Another feature of a Tax-Sheltered Annuity is the ability to rollover funds into other investment options. For example, it is possible to use your 403(b) to fund your 401(k), Individual Retirement Account (IRA), or another 403(b).

It is important to check any contribution limits or rules established by the new plan administrator before committing to a rollover. If you die before receiving payments, your beneficiaries are entitled to similar options using your Tax-Sheltered Annuity. A spouse is entitled to all of the aforementioned options, while a non-spouse is prohibited from using your annuity money to fund an IRA. A non-spouse beneficiary is only able to transfer funds from one 403(b) to another.

CONTRIBUTION LIMITS OF A TAX-SHELTERED ANNUITY

Unlike a regular deferred annuity, there are maximum contribution limits determined by the Internal Revenue Service (IRS) for each year. Beginning in 2006 the maximum personal (elective) contribution limit was increased to $15,000 per year, up from $14,000 in 2005. Also in 2006, your employer (non-elective) may choose to contribute to your Tax-Sheltered Annuity with a combined maximum contribution limit of $ 44,000.

You may be able to contribute up to $5000 more per year if you are age 50 or older and an additional $3000 per year if you have been with the same company for more than fifteen years. Failure to comply with these contribution limits can result in additional taxes and penalties for both the employee and contributing employer.

TAX PENALTIES OF TAX-SHELTERED ANNUITY AND AGE REGULATIONS

As with the deferred annuity, a Tax-Sheltered Annuity is used to supplement retirement income. If you decide to withdraw money prior to age 59 ? you will be subject to a ten percent penalty by the IRS in addition to the standard income tax. There are a few exceptions to paying this penalty, although specific criteria must be met.

If you leave the service, encounter extreme and immediate financial hardship, or become disabled you can avoid paying the ten percent penalty. Although the ten percent penalty is not enforced in these cases, you are still responsible for paying income tax on the money you withdraw. You must begin taking minimum payments from your Tax-Sheltered Annuity in either the same year as your retire or by age 70 ?, whichever comes first.

Failure to do so will result in a fifty percent excise tax on the money you should be receiving. The only exception to this age restriction pertains to all contributions made to a Tax-Sheltered Annuity prior to January 1, 1987. Anyone who paid into a Tax-Sheltered Annuity before this date is allowed to defer withdrawal until age 75. If you die before the withdrawal period your beneficiaries may receive payouts from your Tax-Sheltered Annuity without paying the ten percent penalty, but they are still responsible for the income taxes.

Regulations on tax compliance change every few years to accommodate inflation rates, and it is important to familiarize yourself with these changes to avoid penalties from the IRS. Helpful resources including articles, worksheets, and an updated FAQ page can be located at www.irs.gov and search for keywords "tax sheltered annuity."

Author bio - Rocco Beatrice, CPA, MST, MBA
Award-winning estate planning & trust expert
MS - Taxation, Master of Science Taxation
MBA - Management / Taxation
BSBA - Management / Accounting
CPA - Certified Public Accountant
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Irrevocable Trust Asset Protection, Offshore Asset Protection
Charitable Gift Annuity
71 Commercial Street #150, Boston, MA 02109
tel: +1.508.429.0011 fax: +1.508.429.3034

Offshore Annuity, Deferred Variable Annuity

2008-03-18T23:43:00.000-07:00

An Offshore Annuity works very similar to a deferred variable annuity. The owner pays into the annuity during the accumulation phase using either a lump sum or paying scheduled amounts over a period of time. The money in the annuity will gain interest at a rate determined by the investment portfolios in which it was placed, and either the owner or annuitant will be taxed once the withdrawal period begins.

You should remember that the owner and annuitant do not need to be the same, and for an Offshore Annuity the owner is usually an offshore trust. If the two annuities are so similar, then what is the benefit of having an Offshore Annuity versus a U.S-based deferred variable annuity?

BENEFITS AND ADVANTAGES OF AN OFFSHORE ANNUITY

There are several advantages to having an Offshore Annuity, but they can be easily narrowed down into three main benefits:

1. flexibility

2. protection

3. tax advantages

FLEXIBILITY OF AN OFFSHORE ANNUITY VS DEFERRED VARIABLE ANNUITY

When you choose to purchase a deferred variable annuity you are usually opting to place your money into mutual funds, equity funds, bond funds, etc. The investment portfolio chosen for your money is done by the insurance company you purchase the annuity from, and is limited to venders they have contracts with.

An Offshore Annuity offers more investment options since the overseas advisor can choose to place the money in any of the previously mentioned portfolios, or, for example, they can invest your money in gold. The overseas advisor is not limited by contracts and can invest your money into a number of diversified accounts. Your rate of return is not guaranteed, and is determined by the success of your advisor?s chosen investments.

ASSET PROTECTION AND SECURITY OF AN OFFSHORE ANNUITY

Offshore Annuities offer much more than just increased investment options; they offer a secure way to hide your existing assets from the U.S Government. This feature of an Offshore Annuity is also known as Wealth Preservation. If the offshore issuer of your annuity has no U.S-based affiliations, U.S Courts have no jurisdiction over them or your annuity. This means that anyone wishing to effect a garnishment of your assets must receive permission from the host country where your Offshore Annuity originates.

This is not as easy as it seems since Offshore Annuities are not subject to U.S foreign account reporting requirements. This feature of an Offshore Annuity makes it extremely difficult to link you to any funds other than what you report on your income taxes. It is important to note that while you can be both the owner and annuitant for your annuity, this situation only applies if the owner of the annuity is an offshore trust. (Please note Estate Street Partners and its partners do not ever condone on misreporting on your income.)

FRAUDULENT TRANSFER LAWS ON ANNUITY

If you are both the owner and annuitant, you may be ordered by a U.S. Court to use your annuity to pay a creditor. There are only a few states which exclude annuities from creditors, but you will be subject to fraudulent transfer laws if you obtained the annuity for the sole purpose of hindering or delaying a creditor?s claim.

Having an offshore trust take ownership of your annuity avoids this situation altogether, although it is important to investigate the fraudulent transfer laws of the offshore trust and choose only those which appear investor friendly.

OFFSHORE TRUST OF ANNUITY: WITHHOLD DIRECT ANNUITY PAYMENTS TO BENEFICIARY

Having an offshore trust for your annuity offers you, as trustee, the option of withholding direct annuity payments to a beneficiary. If the beneficiary is affected by a drug or alcohol addiction, or is battling legal issues, you may choose to allocate annuity payments indirectly for their benefit. This is very different from a deferred variable annuity which only offers a direct payment to the annuitant or beneficiary in the form of lump sum or scheduled payments.

TAX ADVANTAGES OF OFFSHORE ANNUITY AND OFFSHORE TRUST

Your Offshore Annuity will grow tax-deferred until you begin withdrawing money, and the U.S Government only requires a one percent excise tax on the premium you paid to implement your Offshore Annuity. Another difference between a deferred variable annuity and an Offshore Annuity owned by a trust, is your beneficiaries do not need to receive payments immediately following your death. Therefore they can delay paying taxes on your annuity until the trust begins distribution of the annuity.

HOW TO PURCHASE AN OFFSHORE ANNUITY? WHO IS IT FOR?

An Offshore Annuity is not for everyone. Most issuers require more than one million dollars to implement your annuity. As previously mentioned, it is wise to have an offshore trust own your annuity. In this case, the offshore trust completes the annuity application and sends it to the issuer. Upon approval you will wire funds to the bank account of your trust, who will then wire the premium to the issuer to complete the transaction.

author bio - Rocco Beatrice, CPA, MST, MBA
award-winning estate planning & trust expert
MS - Taxation, Master of Science Taxation
MBA - Management / Taxation
BSBA - Management / Accounting
CPA - Certified Public Accountant
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Asset Protection Irrevocable Trust, Estate Planning
Annuity Types
71 Commercial Street #150, Boston, MA 02109
tel: +1.508.429.0011 fax: +1.508.429.3034

Annuity - Fixed, Variable, Equity-Based Annuity - Deferred, Immediate Annuity

2008-03-18T23:42:00.000-07:00

Annuities are not a new concept, although they have become more complex over time. The first annuities were documented in America during the mid-eighteenth century by Pennsylvanian ministers, and it was not until the early twentieth century when they became available for purchase by the general public.

WHAT IS AN ANNUITY? HOW CAN YOU BENEFIT FROM AN ANNUITY?

So, what is an annuity, and how can you benefit? A simple answer is that an annuity is an agreement between you and your insurance company. Annuities can only be sold by agents specifically licensed to do so, and each insurance company is regulated by individual state insurance commissions. Your insurance agent must possess a life insurance license as well as a license from the National Association of Securities Dealers (NASD) or the Securities and Exchange Commission (SEC).

If your insurance company goes bankrupt, other licensed companies in the state are required to honor your contract. The terms of an annuity are that you will pay a sum of money to the insurer (either a lump sum or series of payments) and they will make scheduled payments to you immediately or delay payments until after a certain period of time.

Unlike your 401(k), annuities grow tax-deferred and you will not pay any taxes to the Internal Revenue Service (IRS) until you begin withdrawing funds from your annuity. Unlike other savings options through a bank which may calculate and charge yearly taxes on your interest, in a tax-deferred annuity your taxes are based only on the final accumulation of your annuity at the time of withdrawal.

ANNUITY TYPES: FIXED ANNUITY, VARIABLE ANNUITY, EQUITY-BASED ANNUITY

In addition to deciding when you will receive your money from an annuity, you can also choose between a fixed and a variable annuity. A fixed annuity guarantees a minimum interest rate while your annuity accumulates, and guarantees equal check amounts when you withdraw from the annuity.

A variable annuity allows you different investment options for your funds, with a mutual fund as the most common choice. A variable annuity offers no guarantee to payout amounts, and your income from this annuity will fluctuate depending on the investment vehicle you chose. On occasion you may be offered an equity-based annuity which determines your interest rate based on an equity index such as the S&P 500.

CHOOSING BETWEEN A DEFERRED ANNUITY AND IMMEDIATE ANNUITY PLAN

Deciding between a deferred and an immediate annuity is a matter of personal preference. If you prefer to save for a long-term goal such as retirement, and have no immediate need for the money, you should consider a deferred annuity. It is important to remember that if you choose this type of annuity there are penalties for early withdrawal. The IRS imposes a standard ten percent penalty, in addition to income tax on accrued funds, if you withdraw money before the age of 59 ?. Your insurer may also charge you surrender fees for early withdrawal.

3 METHODS FOR REQUESTING PAYMENT FOR DEFERRED ANNUITY

If you wait until retirement to withdraw money, there are three methods for requesting payment from a deferred annuity. You can:

1) Request a lump sum payment or

2) Take out money only when you need it or

3) Annuitize and receive a set dollar amount every month for as long as you live

Most people choose to annuitize because it also spreads out the required income tax payments. If you die before withdrawing from the annuity your beneficiaries are entitled to receive the balance of your annuity by these methods as well, although if they choose a lump sum they will be charged all the tax on your accrued interest at once.

IMMEDIATE ANNUITY IF CLOSE TO RETIREMENT

If you are close to retirement, or already retired, an immediate annuity is a wiser financial choice. Immediate annuities must be purchased with a lump sum since payments will usually begin within one month of purchase. When you purchase an immediate annuity you are guaranteeing a steady income for the rest of your life, or for a predetermined time period. When you receive payments from an immediate annuity you are only taxed on the earnings from your initial investment. The part of your check that is the principal is not taxable.

3 MAIN OPTIONS FOR WHEN YOU RECEIVE AN ANNUITY PAYMENT

There are three main options to choose from when receiving an annuity payment.

1) The first is Income for Life which guarantees you a set income for the duration of your life, but payments will cease upon your death. This option is risky since you don?t know exactly when you will die. Should you die before your annuity has been completely paid out, the insurance company, and not your beneficiaries, will receive the remainder of the annuity funds.

2) The second payout option is Income for Life with a Guaranteed Period. This option is more appealing because it provides the same coverage as the first option, but if you die before the predetermined guarantee period expires, your beneficiaries will continue to receive payments until the guarantee period ends.

3) A third option is known as the Joint and Survivor option. This option guarantees payment to you and another person, usually a spouse, until both of you dies. Annuity payout options are flexible and any of these options can be combined to fit your individual needs.

DOWNSIDES TO AN ANNUITY

Annuities may also be used to fund your 401(k), 403(b), and Individual Retirement (IRA), although it is not generally advised to use your annuity for this purpose. The two downsides of greatest concern are a contribution limitation, and the federal government requirement for you to begin receiving minimum payments by age 70 ?. Additionally, once you have used your annuity to finance your 401(k), for example, you will incur a ten percent penalty for early withdrawal if you take money before you reach age 59 ? and there are few exceptions to paying this penalty. Once you begin receiving annuity payments you cannot change your mind, and you will continue to receive payments for the predetermined time frame established during the accumulation phase.

author bio - Rocco Beatrice, CPA, MST, MBA
award-winning estate planning & trust expert
MS - Taxation, Master of Science Taxation
MBA - Management / Taxation
BSBA - Management / Accounting
CPA - Certified Public Accountant
-----
Asset Protection Irrevocable Trust, Offshore Asset Protection
Will Contest: What is it? How can you Protect a Will?
71 Commercial Street #150, Boston, MA 02109
tel: +1.508.429.0011 fax: +1.508.429.3034

Licensed Annuity Agent Reveals Secret Agenda

2008-03-17T23:31:00.000-07:00

Large financial service organizations tilt the playing field against consumers. Metlife and, more recently, AXA Advisors are in the news for possibly offering incentives to representatives to recommend house products. It has been reported that some companies require the sales of proprietary products in order for agents to qualify for health insurance and other employee benefits.

Are consumers aware of this secret agenda when they meet with an agent? I am hesitant to use the term ?advisor? because that would insinuate the salesperson has the client?s best interest at heart. I am embarrassed to admit that I was offered a position with one of the companies mentioned in this article and was shown an impressive array of financial products available. It was then explained to me that house-brand life products and annuities paid much higher commissions than the ?outside? products and house-brand vehicles would help me qualify for incentive trips much faster.

I receive a monthly financial industry magazine that devotes much of their pages to advertisements from annuity companies pitching their wares. Each ad focuses on their high agent commission payout. One company will send my wife and I to Switzerland if I sell $2 million of their annuities. One ad is from a life insurance company offering a whopping 107% first year commission on the sales of their whole life policy! Another company?s full-page ad touts an average $17,000 commission per annuity and an annuity-selling coach explains that he is willing to teach me the secrets that helped him earn an ?incredible $381,522 in annuity commissions in only 6 months!?

One annuity company offers an a 7% commission on one annuity and an 11% commission on another annuity product. Here are some questions consumers should be asking.

Why would the company be willing to pay me 58% more compensation to sell one product over another? Answer: The higher-commission product is in the company?s best interest, not the client?s.

If an agent sells you a product paying 11% commission, will he advise you that he could have sold a product that paid him much less but he chose not to? Answer: I don?t think so.

Who is really paying the extra 58% in salesperson compensation? Answer: You, the client.

As a financial consumer, do I deserve to know any factor that is influencing the recommendations of my salesperson? Answer: A definitive YES.

Did the annuity salesperson hold himself out as a trusted financial advisor? Probably.

The problem with the real-life annuity example shown above is that the client has no way of knowing how much commission was earned by the agent. The 11% commission product will pay a much lower interest rate to the investor and/or have a much longer surrender period, tying the client?s money up for years. Fixed annuities and equity index annuities need complete commission transparency. Annuity companies know that higher commissions influence the sales practices of insurance agents and they also know annuity clients have no idea of the high price they are paying for a false sense of peace of mind.

I brought these issues up at a recent industry association luncheon. At my table, I had an insurance agent on my left side and an attorney on my right. To quote the agent, ?caveat emptor? or buyer beware. The solution for consumers, don?t be a buyer! See a fee-only advisor who is not tantalized by trips to Switzerland and high commission insurance products with no commission transparency. Also, consumers should demand legislation that forces all annuity commissions to be equal and completely disclosed to the client. The insurance and annuity industry should be embarrassed and any bad reputation is probably well deserved. The good news is that quality no-load annuities are available but don?t count on your average annuity salesperson to tell you about them.

Mark Diehl is a Certified Financial Planner, Chartered Financial Consultant, and author of The Wealth Management Manual available at amazon.com and barnesandnoble.com.

You can learn more about Mark at http://www.markdiehl.info or call 800-304-1232.

How to Sell Your Promissory Note-Real Estate-Business-Annuity-Structured Settlement

2008-03-16T22:46:00.000-07:00

First, the definition of a Promissory Note:

(A promissory note is defined as 'A promise to pay a certain amount of money on a periodic or future lump sum basis, defined by the terms and conditions contained in the Note Document'. Usually, a Promissory Note is constructed during a tangible property sale event where the property seller Takes Back a promise-to-pay (Promissory Note) instead of Cash.)

Owning a promissory note, instead of requiring cash, sounded like a good idea at the time you sold your real estate or business or accepted your Structured Settlement because you would have a guaranteed steady stream of monthly payments at a reasonable interest rate. Right?

Then, you soon found out that:

1. The interest rate you charged is now too low,

2. The payor of the note does not always make the payments on time so you have to call and demand the payments,

3. You have to pay taxes on the income,

4. You figured out that the value of your note diminishes everyday, and,

5. You could put the lump sum of the note money to better or now-needed use.

So, you decide to sell your promissory note.

1. First you went to your bank and they would not buy it nor did they have any information about how to sell it.

2. Next, you asked your friends and one said Find a Note Broker. So, you searched on the Internet and found a million web sites all purporting to be able to buy your note. You talked with a few but did not get any satisfaction or few return calls. Now the frustration sets in.

Here's how the Note Buying business works:

1. Notes are purchased by seasoned, reputable investors seeking long term returns on an investment using their own money. Investors can be individuals, groups, companies, pension funds or specialty funds.

2. A note is valued according to the long term yield to the investor. It?s named, Time Value of Money. Or, a dollar today is worth more than a dollar tomorrow. Therefore, your note can be purchased at a discount or less than its current principal amount in order to provide the investor?s needed long-term-yield.

3. The note yield and value is determined by the Note Interest Rate, the credit score of the note payor, the term of the note, the payment schedule, the Loan To Value Ratio (LTV), the payor's equity in the property, the security for the note and the terms of the note.

4. Your note can be purchased by an investor based on his/her required note type, note criteria and required yield.

5. Note investors specialize in different types of notes. Some buy only 1st Deed of Trust Real Estate Notes or Mortgages, some buy only Business Notes or Annuities, etc. To make a long story short... you do not know if the person you are talking to is a Broker or an Investor or both or what note type, criteria and yield he/she requires. Frustrating. Now you think all note investors and brokers and the whole note buying industry is sleazy, unethical, unprofessional and worthless. Well, I admit that part of that is true for many unprofessional brokers but REAL Investors and REAL Brokers are here, honest, professional and provide a valuable service. How do you know? Just ask him or her if he/she is a Broker or Direct Investor, what types of notes they desire and what is their criteria and process. More on this in another article.

This is what you need to know and do regarding your promissory note:

a. The value of your note is determined by when and how you construct it. When constructing your note, assume you will want to sell it within the first year. If constructed properly and professionally, it will have high value. Professionally means using the services of an experienced Business or Real Estate attorney to construct your Note. Never use one of the simplified Note Forms available anywhere. Think about it... why do you think Real Estate Lenders use exquisite, complex, complete Loan Documents that are constructed for their own lending criteria? Next, Real Estate secured notes are valued on the appraised value or sale price of the property minus the payor equity and the credit worthiness of the payor. Business Notes are valued on the note payor credit worthiness and historic business performance.

b. The highest valued notes are those that the current Note principal amount is not more than:

i. 80% of the sales price of the Real Estate if it's a 1st Deed of Trust Note/Mortgage, or 20% if a 2nd Deed of Trust and the total of a 1st and 2nd doesn?t exceed 80% of the sales price or,

ii. If a business note, 67% of business sale price.

c. The payor responsible for the performance (payments) of the Note credit score must be above 640 (the national average credit score is 678) when you construct the Note (The lower the credit score, the less your note is worth). Always obtain a current Credit Report on the payor before concluding a note transaction. You have the legal right (by virtue of the Federal Fair Credit Act) to request or obtain one because you are going to be their creditor. Go to www.transunion.com and click on Consumer Info to obtain a Tri-Merge credit report (it will provide you a payor score and report from each of the three credit reporting agencies). You will need the payor full name, address, SS# and birth date. You do not need your payor?s approval to obtain their credit report because you are going to be the payor?s creditor.

d. The Note payments should be monthly.

e. The Note terms should be:

i. For Real Estate Notes: 'Amortized Monthly, Payments in Arrears'. Or, Amortized Monthly, Payments in Arrears for 15-30 years with a full Balloon payment due in 5 years. Try not to accept an 'Interest Only, Full Balloon at the end' Terms.

ii. For Business Notes: ?Amortized Monthly, Payments in Arrears for no more than 5 years?.

f. Your Note should carry an Interest Rate tied to Prime + 2%. Prime of this date is 8.25%.

g. Your Business-Promissory-Note should have a Collateralized Personal Guarantee from the payor equal to the Original Principal Amount of your Note. This Collateral should be tangible, like Real Estate, that is owned by the payor outside this note transaction.

h. The above are the basics. Your accomplished attorney should know how to construct your note correctly and know who we are so he can contact us from our web site for knowledge and instruction.

Now, Selling your Note:

1. Your first goal is to receive a cash-purchase-quotation. Only Direct Investors can provide this. A broker will take your information, find an investor, obtain a quote then present you with that quote less his fee. Sometimes Brokers have investors that will pay you more cash than professional investors, but there is usually a catch. Don't get me wrong. Note Brokers serve a valuable purpose.

2. Gather all the information about your note. You can find the note questions you have to have answers for at www.notefundingcenter.com/sellnote.html Here you just click on the ?Type of Note? and a Note information Worksheet displays asking all the questions needed to provide a VALID cash-purchase-quotation.

3. Find a reputable Note Broker or Direct Investor. Search on the Net with keywords ?sell note?, ?note buyer?, ?mortgage buyer?, ?annuity buyer?, 'structured settlement buyer'. You will find us plus hundreds of others. Contact the ones you like and ask questions. Just remember, there are very few REAL direct Investors. Just ask.

4. If you want to use a Broker, (a reputable Note Broker will request specific information about your note; he will package the information and contact us and other Note Buyers he has brokering agreements with). Some will broadcast your note to everyone on the Net. Broadcasting will devalue your note to almost $0.00. So, if you want to use a broker, ask him to provide you with the list of his contracted buyers he is sending it to and agree in writing that he only present your note to those you have agreed.

5. If you want to list your note for sale on the Internet yourself, there are many Note Listing sites where you can list your note and investors will find your note and contact you. This is named 'Broadcasting'. See #4 above.

6. A Note Investor/Buyer like us , will request detailed information about your note before providing you with a cash-purchase-quotation. Logical, right?

7. You should receive numerous phone and email communications from your selected Broker or Investor prior to providing a cash-purchase-quotation. In our case, after 30 years in the business and 50% referral customers, we contact you within 1 day of your note information submission and explain the process, provide you a personal supervisor and ask any additional questions. Then, provide you a cash-purchase-quotation.

8. Your Note cash-purchase-quotation is usually a Net-Cash-To-You quotation. Sometimes it will be "$XXXXX.XX with your provided Appraisal and Title. You should always know what your Net-Cash will be after selling and funding. Just ask.

9. After you accept the cash-purchase-quotation,

a. You will be requested to agree to the note-purchase-quotation and provide certain note related agreements and documents. (You already have the majority of the documents.)

b. The note-funding-processing-service will conduct ?due diligence? on the note, property, documents, credit and history.

c. Assuming all the Note components pass the due diligence, your note will enter into ?Transaction Processing and Funding? and you will receive your cash funds. Normally this process takes up to 30 days.

Bottom Line:

1. Your Promissory Note is your serious financial asset. Treat it with respect.

2. Construct your note so that it is salable at the highest possible Cash.

3. Have all the logical Note information readily available if you want to sell it for the most cash. See our web site for the information and documents needed. Or, email us with your questions.

4. Select a note buyer/investor/broker/listing service that you feel provides you the best service.

5. Inform your existing Note Payor that you intend to sell your Promissory Note of which he is the payor. He will have NO negative effects. The only change he will experience is to whom he makes his existing payments.

6. Don't get caught up in the excitement of the deal.

7. Heed all the above.We are here to help you from beginning to end. Remember, we have been buying Notes for 30 years and respect that this is probably your first and only Note and a valued asset.

notefundingcenter.com

The Author of this article is David Castellini. He is founder and President of Note Funding Center- http://www.notefundingcenter.com, a 30 year buyer of Notes, Mortgages, Annuities and Structured Settlements. He and the company are considered the authority on Future Income Stream Instruments, cash-flow-instruments and seller-financed-notes and seem to provide the most accurate information, best prices and best service. He is also a Banking Consultant and Graduate Business School professor. David can be contacted from our web site.

Where Do You Find A Qualified Buyer of Structured Settlement Annuity?

2008-03-16T22:45:00.000-07:00

Finding a qualified buyer of structured settlement annuity is much easier these days thanks to the Internet. With just the click of a mouse you have access to the top note buyers in the country, and you can sell your annuity in a matter of days. It's just a question of finding the right buyer.

Many people find at the beginning or over time that the monthly payments they receive as part of a structured settlement no longer work for them. They might need an immediate source of cash, might be looking to retire or just might not want to assume the risk anymore. Whatever the case may be, there are professionals who are willing to purchase these settlements and assume the risk for you.

It's important to remember that you do not have to sell your entire note. Rather, you can tell the buyer of structured annuity settlement that you only want to sell a portion of it. This is called a partial and it is a common way of structuring the deal. Here's an example of how this works:

Let's say you have a $100,000 settlement paying over 5 years. You need $40k now for a new investment. Well you can sell $40k worth of payments (however many months that works out to be) and retain the rest of the monthly income. Once those payments are made, you resume right where you left off and start receiving your monthlies again.

There are other ways to sell as well, and a knowledgeable buyer of structured settlement annuity will be able to explain all of them to you. After hearing all of the options you can decide which works best for your particular financial situation.

How much will you get for your structured settlement?

That depends on a number of factors, including but not limited to the remaining balance, months/years left, inflationary concerns, timeliness of payments and the financial stability/reliability of the payor. The buyer of structured annuity settlement will take all of these into consideration to come up with their valuation. Remember, it has to make financial sense for them as well as they are taking on the risk of holding this annuity, possibly for many years to come.

If you're considering selling your note, make sure you find a qualified buyer of structured settlement annuity with many years of experience in the industry. This way you are sure to get top dollar for your settlement.

Jamie has been working in the finance industry for many years and is a contributing editor to http://www.selling-your-note.com. Find a buyer of structured settlement annuity and learn more about cash flow instruments on our site.

A Professional Buyer of Structured Settlement Payments Can Pay You The Most For Your Annuity

2008-03-14T03:22:00.000-07:00

A reputable, qualified buyer of structured settlement payments can offer you top dollar for your annuity. Taking several factors into account, he or she will come up with a fair value for your settlement, often referred to as a "note". You can then decide which of several options works best for your particular financial situation.

Structured settlements are set up as a resolution to an injury claim, whereby the victim receives a set monthly payment in the form of a tax-free annuity as compensation. The arrangement usually favors both parties, as the victim gets money every month to cover the costs of medications, rehabilitation and other bills and the defendant, or payor, issues easy to swallow smaller monthly installments rather than a large sum of money up front.

However, many people decide to look for a structured settlement buyer rather than opt to receive small monthly payments. Although it's nice to have an ongoing stream of income, you may want or need to have a large some of money for a new investment, a large purchase or to pay off a high interest debt.

In this case, selling your note makes a lot of financial sense, and a reputable buyer of structured settlement payments will be able to provide the cash you need, usually within a couple of weeks. It is a fast and easy way to get your hands on a lump sum of money, especially compared to getting a loan from your bank or another financial institution.

How much will a structured settlement buyer pay you for your note?

That's a good question. It will depend on a variety of factors: the balance on the annuity, the time left before it is paid off, timeliness of payments to date, stability of the payor, and various other criteria. Remember, the buyer of structured settlement payments is assuming a risk by purchasing your note, so it has to make sense for them financially to do so.

To ensure that you receive top dollar try to have all of your paperwork in order, and keep careful records of everything that has transpired since the annuity was set up. This will be very helpful to the structured settlement buyer, and enable them to come up with a fair and competitive quote.

Also, keep in mind you can sell just a portion of the annuity; you don't have to sell the entire thing. So if you only need a certain amount of cash, you can sell "x" number of months of payments and retain the annuity after that time period. An experienced buyer of structured settlement payments will outline all of your available options so that you can make the right decision.

Jamie has been working in the finance industry for many years and is a contributing editor to Selling Your Notes. Find a top structured settlement buyer and find more information on seller financing on our site.

Where Do You Find a Reputable Annuity Payment Buyer?

2008-03-12T22:53:00.000-07:00

Circumstances change; if you find yourself with an annuity that you no longer need, look to an annuity payment buyer for help. With his assistance, you won?t have to wait until the end of your contract to receive your money.

Often, people buy annuity investments to help them in the future, as part of their retirement plan or to help their kids pay for college. They might also have one as part of a structured settlement set up as a resolution to an injury case. There are many different types of annuities but they all are similar in the way that they work.

An annuity is set up through an insurance agency. They use your money to buy safe investment instruments like bonds or mutual funds. Your money grows faster because an annuity isn?t taxed until you start getting it back. Somewhere out in the future (at an agreed upon time) you start receiving an income from this annuity. Depending on the type of that was purchased, you will continue to receive this income until there are no longer funds in the account or until you die.

But, sometimes things change; you decide that you no longer need the annuity. Maybe your grandfather bought it for you because he wanted you to go college. But, college really isn?t in your future; you want to tour Europe instead. Or, maybe after being retired for a month, you decide retirement isn?t for you. Since you will be working, you no longer need the guaranteed payment from the annuity. A medical or family emergency may require immediate cash. You can not withdraw money from an annuity without serious penalty but you can sell all or part of it to an annuity payment buyer.

How do you find a buyer of annuity payment? There are plenty of resources online. You will find what you are looking for under the titles: buyer annuity payments or sell my annuities, and other related terms. Visit the sites that come up and gather all the information that you can. The company that you choose will purchase your annuity at a discounted rate. This is because the cash value of the annuity hasn?t been realized yet. So, you want to be sure that get the best offer. Even at a discounted rate the lump sum payment that you receive can be worth more today then it would be at term. This is especially true if you are using it to reinvest in a higher yielding, financial instrument.

There are some things that are important to consider before selecting the company who will become your annuity payment buyer. Annuities are complex financial instruments; you want a buyer annuity payments company that has been in business a long time. One who understands the ins and outs of the tax questions that arise when an annuity is sold. You want to find a company skilled in customer service: one that takes the time to explain to you what to expect and is willing to answer all of your questions. After you have chosen the right company and have signed all the paperwork, you can expect to receive your lump sum cash payment in about 2-3 weeks.

If you have an annuity but you need cash, find a good annuity payment buyer today. You'll be glad you did!

Jamie has been working in the finance industry for many years and is a contributing editor to Sell Notes. Find a buyer annuity payments and more information on cash flow paper on our site.

A Guide to Annuity Products

2008-03-12T22:48:00.000-07:00

Annuity is a fixed amount of money received for the whole life or a definite time period specified and agreed upon, in the contract. A savings account is the most common example of an annuity, where the annuitant deposits the principal amount of money to earn a certain percentage. The annuitants may invest this money in business, insurance companies or lend it to individuals. The percentage of the income is specified at the time of agreement. This serves as a partial return of the principal amount and an additional income, simultaneously.

In case of group annuity contracts, the periodic payments are made to one of the employers, covered by a master contract signed by the employer. Retirement annuities are paid only post-retirement. In case of the annuitant?s death, before the expiry of the agreed period or the annuitant?s decision to surrender the policy, a certain amount is paid back to the annuitant?s beneficiary.

A fixed annuity refers to a specific amount of payment after the defined period, irrespective of the financial crisis faced by the company. In case of a variable annuity, the payment amount depends on the success of the investment and fluctuates accordingly. Straight annuities are contracts for making variable payments on a monthly or yearly basis, while life annuities are paid only during the lifetime of the annuitant and ceases with death.

Deferred annuity payments commence on a decided future date, provided the annuitant is alive. This also delays the income tax payments till the annuity payment starts. A refund annuity promises to refund certain amount of cash during the lifetime of the annuitant and in case of death the person?s estate receives the money. Joint annuities are payable to two persons named in the agreement, one of whom receives the money, in case the other dies.

Buy Annuity provides detailed information on Buy Annuity, Buy Annuity Leads, Buy Fixed Annuity, Buy Retirement Annuity and more. Buy Annuity is affiliated with Fixed Annuities

Annuities - Don't Put Your IRA In A Variable Annuity - Part 2

2008-03-11T22:10:00.001-07:00

Last week I shared with you the real reason advisors push IRA accounts into variable annuities: the commission. If you?re getting ready to retire with a large IRA rollover, or your current IRA account is nearing the end of any surrender penalties, chances are you?ll be pitched this product. So this week I?m going to reveal more secrets about the truth behind the variable annuity sales pitch.

One of the biggest draws advisors use to get you to take the plunge is the promise of the big bonus. They?ll pay you 6%, 8% or even 10% extra, right up front, just for putting your money into their variable annuity. Sounds great, doesn?t it? Who wouldn?t want such a big boost to their nest egg, especially with the stock market returns of late? But remember, there?s no such thing as a free lunch.

In return for this lovely bonus, you end up paying higher recurring annual fees, usually .15% higher (or more) than regular variable annuities. These fees are charged on all of the money in the annuity and are a continued drag on performance. Surrender penalties are higher and longer, too. The truth is that when you take into account the increased fees and the extra years you have to stay in the annuity, you really aren?t getting a ?bonus? at all!

These bonuses aren?t just used to entice you to invest your original IRA rollover when you retire. They?re also used to encourage you to transfer out of an annuity you already own that?s still in the penalty period. Advisors will tell you that the bonus on this ?new-and-improved? annuity will ?pay you back? for the penalty you?ll pay to get out of your old commission-based investment. The truth is, by getting you to switch to the ?bonus? annuity, they earn a fat fee up-front. You end up with pretty much the same thing you had but now are locked into it for much longer. What kind of a ?deal? is that? The promise of multiple investment choices is another feature of the variable annuity sales pitch that doesn?t live up to its claim. It?s true that many variable annuities offer a multitude of mutual fund choices in various sub-accounts, including funds investing in bonds, small companies, large companies, international stocks and more. Surely out of all of these choices, anyone could create a balanced well-performing portfolio, right?

Not necessarily. It?s sort of like fishing. Who wants to fish in a pond full of minnows? Wouldn?t you rather drop your line where you have a greater chance of catching the big one? The mutual fund universe is full of thousands of choices. But only a small group of them are consistent top performers. Unfortunately, few variable annuities offer these big fish.

Some variable annuities feature a well-known fund already offered to the general public. But beware. This same fund will have much higher management fees within the annuity than it does outside of it, hampering its performance. I believe insurance companies make special deals with mutual fund companies to gain access to their management and then charge higher fees.

When you invest your money into a variable annuity, you?ll no longer have control over the choices at your disposal. The insurance company can change the investment choices whenever they want to and you have no recourse. Since your money is locked in for years, it will be very costly to change course a few years down the road should you be dissatisfied. What kind of choice is that?

So here?s the bottom line: variable annuities make big promises but don?t really deliver. Every feature they offer -- be it a big bonus, a multitude of investment choices, death benefit, or a guaranteed income stream -- comes at a very high price. High management fees and long, costly surrender penalties hinder your performance and rob you of your flexibility and control. The ones making the most money off of variable annuities are the advisors and the insurance companies. It turns out that variable annuities are a great investment?for them.

If you?d like free, clear, unbiased advice submit your questions to http://www.guardingyourwealth.com/askjeff.htm. Also, see answers to questions other readers have asked onthe Q&A page at http://www.guardingyourwealth.com.

Mr. Voudrie is a Certified Financial Planner, nationally syndicated newspaper columnist and President of Legacy Planning Group, Inc., a Private Wealth Management Firm in Johnson City, TN. He can be reached at jeff@guardingyourwealth.com

Nationally-syndicated financial columnist and Certified Financial Planner? Jeffrey Voudrie provides personal, in-depth money management services and advice to select private clients throughout the USA. He?ll answer your financial question ? FREE at http://www.guardingyourwealth.com

Annuities - Don't Put Your IRA In A Variable Annuity

2008-03-10T22:34:00.000-07:00

If you?ve talked to a broker or agent about rolling over your retirement account, there?s a good chance the advisor recommended you invest in a Variable Annuity. Don?t do it! I believe the only reason a variable annuity is recommended for an IRA is so the advisor can earn more money. Let me explain.

There?s a high probability that if an advisor doesn?t recommend an Equity-Indexed Annuity for your IRA rollover, a Variable Annuity will be recommended instead. ?There are so many advantages to a variable annuity versus a mutual fund?, you?re told. I disagree. It?s advantageous for the advisor, not the investor.

In this article, I?ll debunk the two main arguments used in selling variable annuities. First, that you don?t pay a commission and secondly, the importance of the death benefit guarantee. I?ll explain how you pay dearly for both.

One of the main sales ?hooks? used in selling a variable annuity is that you don?t have to pay a commission. That can be very compelling when compared to a mutual fund in which you pay the all the commission up-front. Many advisors will even say that they get compensated by the insurance company, not you. Do you really believe that?

Insurance companies are not charitable organizations. If they are paying the broker, they?ll recoup those costs from you?the costs are just hidden so you don?t think you?re paying a commission.

The second main argument for using a variable annuity for an IRA is the death benefit (not offered with a mutual fund). ?That way you?ll never have to worry about your beneficiary getting less than you invested?, the thoughtful advisor says. This feature may seem nice, but you end up paying through the nose for it.

With all variable annuities there is a Mortality and Risk Expense (M&E) charge. Most variable annuities sold through commission-based advisors have an M&E charge of 1.45%. This is an annual fee that is charged against the entire value of the account, not the original investment. On a $500,000 investment that amounts to $7,250 the first year. If your account doubles in 10 years, you?d pay $14,500 that year.

Note that the M&E charge is in addition to the underlying money management fees charged by the people actually making the investment decisions. Their fees can range from .70% to 1.5%. All told, the fees associated with most variable annuities range from 2-3% per year. That?s a 2-3% hole you start in each year. That?s $10,000-$15,000 each year on a $500,000 investment?and that expense increases as the value of the account increases.

Do you really think it costs $10,000-$15,000 a year to cover the cost of the insurance associated with the death benefit? Of course not. The full $500,000 in our example isn?t really being insured, either. They?re only insuring the amount of loss. So if the investment loses 10%, the actual amount of ?insurance? is $50,000. Even when the investment is worth more than you paid you continue to be charge M&E.

So the death benefit associated with a variable annuity is either the most expensive insurance you?ll ever buy, or it pays for more than insurance. The M&E is where the insurance company makes their money. More importantly, the M&E is where the insurance company gets paid back the money it paid your advisor in commission. Here?s proof. The M&E on variable annuities offered by Vanguard (in which no one earns a commission) is about .60%. That?s over three quarters of a percent less than the 1.45% being paid to the commission-based advisor.

The real reason that you are recommended a variable annuity for your IRA isn?t that it?s better for you. It?s because it?s better for the advisor. If you invest $500,000 in a commission-based mutual fund, the advisor?s gross commission will only be about $10,000. The same investment in a variable annuity would yield gross commission to the advisor of $30,000-$35,000 or more!

If an advisor can earn 3 times more by getting you to invest in a variable annuity instead of a mutual fund, which do you think will be recommended?

Don?t fall for the ?put your IRA in a VA? trap. You are smarter than that.

Get free, clear, and unbiased advice by sending your questions to http://www.guardingyourwealth.com/askjeff.htm

Annuity Rescue - How to Save Yourself a Bundle

2008-03-10T22:33:00.000-07:00

Is Your Annuity Really Working For You? Annuity expenses have a significant impact on your potential returns! Tax-deferred investing

An income stream in retirement.
Insuring your principal in case of death.
Unlimited contributions.

For all these reasons and more, annuities offer a world of promise for investors in search of growth and/or income investing opportunities. Unfortunately, annuity purchasers don't always spend enough time understanding the real costs of the annuities they purchase. Do you know whether your annuity is low cost or high cost? Or the effect these costs may have over time? First, it's important to understand that every annuity carries an administration charge known as M&E (mortality and expense). There are also costs associated with the mutual fund investments found within the annuity. In addition, most insurance companies charge a surrender penalty of 5% to 10% if an investor wants out of the contract before a designated period of time is up. The bottom line: annuity expenses can have a substantial impact on your potential returns. In fact, your investing success and the resulting stream of income at retirement are greatly affected by the administration fees of your annuity - similar to the mortgage rate of your home loan.

To see what a difference lower fees can make on the potential growth of your annuity policy, visit one of our favorite tools: the Ameritas Annuity Cost Comparison Calculator at the Ameritas Direct website.

http://www.ameritasdirect.com/services/lowfees.htm To compare costs accurately, enter your current annuity expenses, an investment amount and time horizon, and other expense assumptions you'd like to consider. Keep in mind that all variable products have some investment risk, including possible loss of principal.

Also, investment returns will fluctuate over time due to market activity and an underlying portfolio's objectives - so that investor shares, when redeemed, may be worth more or less than their original cost. Also, if you're considering switching annuities, be aware that there may be penalties and surrender charges which can be substantial. It's your money. Ensure that your annuity is working for you and your retirement nest egg, not for the insurance or fund company.

Article reprinted with permission of Ameritas Life Insurance Company

Steve Hood

LifePlan Advisors, Inc.
A Registered Investment Advisory Firm

For help or answers to your questions call 541 549-1154

http://www.allweatherinvestors.com

"Your Guide to Lifetime Financial Security and Independence"

26 years of helping our clients and friends meet their retirement goals

How Do You Get Cash For Annuity Payment In a Lump Sum of Money?

2008-03-09T22:25:00.001-07:00

Rather than wait to receive money monthly you can get cash for annuity payment today from what is known in the industry as a note buyer. Many people who find themselves in need of an immediate source of cash choose to sell their annuities either in their entirety or just a portion of the payments.

Annuities can refer to a variety of different financial arrangements but basically they all work out to a steady, monthly payment for a set number of years. In a structured settlement, which refers a financial plan for injury victims, the insurance company sets up an annuity whereby the victim receives x number of dollars, tax-free, for x number of years. You can also personally invest in an annuity, which works sort of like life insurance. You pay a certain dollar amount every year for a certain number of years, and in return when you reach that point you start getting x number of dollars a month for a specified amount of time.

Regardless of the type you currently have, you can receive cash for annuity payments if you have a need for a large sum of money in the short term. It certainly is much easier than applying for a loan at the bank or with another creditor, and it can usually be executed with 10-14 days with an experienced note buyer. Many people choose to do just this to free up funds for a new investment opportunity, a big purchase or some other financial need.

How do you know the total amount of cash for annuities you will receive?

There is no way to determine the exact amount you will receive for your annuity before you speak to a note buyer. This is because there are a lot of factors involved that must be considered in order to arrive at a quote. What is the balance, how much time is left, what are the inflationary concerns, how financially stable is the payor?

These are a few of the questions a buyer offering cash for annuity payment will ask in order to determine how much your annuity is worth. Also, keep in mind that you do not have to sell the entire annuity. Rather, you can sell just a portion of it and retain the rest. You can also often split the monthly payments, so you receive some and the buyer receives some.

That's why it's so important to find a reputable, experienced note buyer to purchase your annuity from you. He or she will be able to present all of the available options to you so you can make an informed decision. And remember, money today is always worth more than money tomorrow, so you really can't go wrong with a cash for annuity arrangement.

Jamie has been working in the finance industry for many years and is a contributing editor to http://www.selling-your-note.com. Learn more about cash for annuities and get a free, no obligation quote from professional note buyers on our site.

Is it Possible To Sell Annuity Settlements For A Lump Sum of Cash?

2008-03-07T21:28:00.001-08:00

You can sell annuity payments for a lump sum of cash rather than wait for your monthly payments if you are in need of a significant amount of capital for an investment, large purchase or other purpose. Whether you have a structured settlement from a lawsuit or your annuity is just a personal investment, there are experienced, professional note buyers who will purchase all or just part of your annuities.

The idea of a tax-free steady source of monthly income is appealing for many people, as it allows them to pay various bills and it is is something that comes in month after month, usually for many years. Some individuals invest in annuities on their own or through work, and annuities are quite common when it comes to structured settlements in injury cases.

But many people find themselves in a position where they need or want an immediate source of cash and they'd like to sell annuity settlement. There are many reasons for this. They might have come across a huge investment opportunity. They might be looking to retire. They might want to make a big purchase. Perhaps they just don't want to wait for a small check each and every month, or don't want to assume the risk of the payor defaulting for one reason or another.

Whatever your own personal reason may be, you can quickly and easily sell annuities without any headaches or hassles. You can usually do this within 10-14 days, especially with an experienced, reputable note buyer. He or she will let you know what your options are so you can make an informed decision. Some individuals choose to sell annuity settlement in its entirety which would yield the largest amount of cash. Others sell just a portion of their annuities, retaining some of their monthly payments.

How much will you get when you sell your annuities?

There are many factors that your note buyer will take into account when evaluating your annuity. Some of these include: balance and time remaining, regularity of payments to date, inflationary concerns, financial stability of payor and other details. Remember, it has to make sense for them financially otherwise it's not worth buying.

The best way to get top dollar when you sell annuity settlement is to keep careful notes of all transactions, and retain a copy of all paperwork from when the annuity was first set up. The more you are able to provide to the note buyer the better off you'll be. Don't forget that you have options, so you don't have to sell the entire annuity. There are several ways to structure it so you get a lump sum and continue to receive some of the payments each month.

If you do decide to sell annuities, make sure you find an experienced note buyer who can offer you a competitive rate for your annuity settlement. Discuss all of your available options and decide what's best for you.

Jamie has been working in the finance industry for many years and is a contributing editor to http://www.selling-your-note.com. Learn how you can sell annuities and other debt instruments on our site as well as get a free, no obligation quote from a professional note buyer.

Why You Should Choose a Structured Settlement Annuity Payment

2008-03-05T22:24:00.000-08:00

If you are the recipient of a structured settlement order, then you know that there are several options open for you when it comes to receiving compensation. One route that may be the best for you is to go with the structured settlement annuity payment. Here's a few reasons why this may be the most beneficial course of action for you.

First of all, if you are receiving money from a fixed annuity that is the result of some sort of legal action, be it a settlement arrived at by arbitration or litigation, the payments will be tax free in just about all instances. In effect, you will have a regular source of income that is all yours and does not have to be accounted for in your calculations of how much state and federal income tax you owe. This can greatly simplify doing your taxes for each calendar year.

Second, a structured settlement annuity payment provides you with a consistent and reliable source of income. No matter what other issues you may have in your life, you can depend on the payments to show up like clockwork. This can be a great situation for someone who has always wanted to try his or her hand at starting a business, but never could because of the need to provide income for the family. Having that regular payment coming in helps to insulate you from changes in the job market, and all sorts of unexpected situations.

The fact is that a structured settlement annuity payment is a cut and dried manner of receiving the money that is owed to you. You can depend on the money coming in at regular intervals until the settlement amount has been disbursed, so you can use it to support yourself while you build other sources of income or you can choose to invest it as you receive the payments. And through it all, the money is tax-free. For many people, this is the ideal situation.

Mayoor Patel is the writer for the website http://www.structured-settlements.wares-are.us/. Please visit for information on all things concerned with Structured Settlement Annuity

Life Annuity; Yes Or No?

2008-03-05T22:23:00.000-08:00

A life annuity is a financial arrangement that allows a life insurance company to provide a series of future payments to an annuitant for a certain sum of money. The payment stream based upon the life expectancy of the annuitant is of unknown length but generally guaranteed to continue for a certain number of years.

Also it is possible to have a joint contract so that the payments stop upon the death of the second of two annuitants ( i.e., a joint and last survivor life annuity).

A life annuity can negatively affect an annuitant who dies before recovering his or investment. Such a situation is rememdied or offset, by the increase in income not otherwise available and the normally favorable tax consequences. Thus each annuitant must decide whether to sacrifice use of the money in favour of a greater return. If you need a greater guaranteed income then that is what a life annuity is designed to do.

Life Annuity Facts

A life annuity has a pro and con reputation from both the annuitant's and the issuer's viewpoint. Who need income or are financially unskilled. Yet, the annuity is an important financial tool for those.

Potential life annuitants are familiar with the ideas involved with life annuities through knowledge of their own pension plan from a business or government position. Most people believe that the odds are stacked in favor of the issuer, though issuers have grappled with the risk these policies bring.

Life Annuities Cost

From the issuer's viewpoint, there are many technical factors that determine the cost of an annuity payment from the life expectancy of the annuitant and the yields on investments made. There are expenses (including distribution costs) related to managing the money and risk management cost for the issuer which can balloon if annuitant's returns are higher.

So Should I Be Looking At A Life Annuity

You should be looking at a life annuity if your age and the prevailing long long term interest rates will guarantee you a superior after tax return. You may be able to generate more income if you actively manage your income but this takes time and expertise. Or perhaps you are just fed up with worrying about the net return and want a life annuity to provide you with a guaranteed income.

There is no easy answer to this life annuity question as we all differ. And often, if there is a large age difference in a marriage, points of view can be very different.

Overall it is necessary to consider all the alternative such as bonds or fixed interest rate deposite along with a life annuity.

Ivon T. Hughes of The Hughes Trustco Group is the author of the Life Insurance Handbook: How To Get The Best & Cheapest Life Insurance available FREE to all new subscribers at: http://www.hughestrustco.com

J.G. Wentworth to Market Annuity Purchase Program With Underwriters Marketing Service, Inc.

2008-03-04T21:32:00.000-08:00

FOR IMMEDIATE RELEASE

J.G. Wentworth to Market Annuity Purchase Program With Underwriters Marketing Service, Inc.

Bryn Mawr, PA, January 24 -- The J.G. Wentworth Annuity Purchase Program? has added Underwriters Marketing Service, Inc. (UMS) to its growing roster of Insurance Marketing Organizations (IMOs). The firm is led by noted insurance marketing executive Mary Ann Lacey-Gray, CLTC. "We're delighted that a firm of UMS's stature has elected to join forces with us in marketing the Annuity Purchase Program," said J.G. Wentworth Regional Director Ryan Clemency. "Mary Ann's experience and participation on various boards, committees and councils offers an invaluable sounding board for new ideas, and reflects positively on the Annuity Purchase Program."

Ms. Lacey-Gray said that, "We believe the Annuity Purchase Program is an important new addition to the insurance agent's portfolio. Insurance agents, as well as financial planners and advisors all know the real need that many clients have in gaining access to extra funds from time to time due to life changes, and the Annuity Purchase Program will enable them to fill this need, and as a result, form a stronger bond with their clients."

The J.G. Wentworth Annuity Purchase Program? enables individuals to sell their investment annuities for cash. The program is marketed directly to individuals and through IMOs which provide agents and brokers with specialty insurance and financial services products.

About J.G. Wentworth For more than 15 years, J.G. Wentworth has been purchasing annuities as well as other deferred payment streams. During this time, the company has purchased over $2 billion of future payment obligations. The company's annuity-backed notes are rated AAA by Standard & Poor's and Aaa by Moody's and sold to institutional investors. J.G. Wentworth is based in Bryn Mawr, PA. For more information about J.G. Wentworth, go to www.jgwentworth.com.

About UMS Underwriters Marketing Service, Inc., entering its 23rd year in business, is a national marketing organization offering sales and marketing support to insurance professionals in the areas of life, annuities, reverse mortgages and long term care. UMS is headquartered in Mt. Laurel, New Jersey, with sales offices in Maryland and Florida and provides sales support to over 3,600 agents.

For More Information: Rosalia Scampoli, Marketcom PR rscampoli@marketcompr 203-622-1353

Erin Ritter is the Director of Public Relations for DMi Partners, Inc. in Philadelphia, PA.

Prospect Accessibility is the Key to Annuity Leads and Sales

2008-03-03T21:48:00.002-08:00

We all want to make the big annuity sale. We all want to climb to the top of our industry and get that special trip the insurance company is offering. We all want the respect and the income we envision for ourselves.

So why is it some of us can achieve it and some of us languish in mediocrity?

Is it because we don?t work as hard as the big producers? Is it because we don?t have the magical close? Is it because we don?t have the best products?

It actually is none of those things. What is it then?

It is nothing other than target market accessibility. It is that simple.

Here is an example, if we only want to work with brain surgeons, how likely is it we will have a full calendar every day?

What about CFOs, CEOs? Get it! The more refined our target market is the more narrow our options. So what would be a great target market?

A nationally know brokerage house recently put in guidelines for their brokers as to who would be the basic client. In other words what was the lowest denominator for a potential client? They suggested to prospect based on income and net worth.

Their suggested guidelines were household income of $100,000 and a minimum net worth of $1,000,000. I looked at this and wondered how hard it would be to find people in this category and if I could find them, could I see them under a favorable basis?

If all the brokerage firms were chasing the same target market, where should I go? How do I fill my calendar each day with my target market? It really was easy once I realized who would best benefit from my simple and easy to understand products.

Here is my target market and one in which there are unlimited people to see and guess what? They don?t come with advisors in tow! I can see them for daytime appointments and they appreciate my annuity products.

My target market:

A married couple with total assets of $600,000 or LESS! This would include their home. Household income was not important and it still isn?t. I like folks in there 70?s and who would have about $200,000 in available assets. A typical case would be an IRA with about $100,000 and the rest in banks and mutual funds.

This target market is everywhere and they all want someone to help them.

If you want to be an annuity salesman and sell $10,000,0000 a year in premium do what I do. Find nice people who are in this target market who will see you and who will appreciate your products. You will have more annuity leads and prospects than you can shake an appointment calendar at.

It is as easy as can be. Let the brokers all fight it out over their target market, use mine and get rich.

Bill Broich is a 30 year annuity salesman who helps insurance agents attract more annuity prospects and sell more annuities. Visit his website for a free annuity quote. Annuity.com

Understanding Annuities Can Lead to More Annuity Sales

2008-03-03T21:48:00.001-08:00

I am always amazed about the questions I get from agents regarding the types of annuities available. Annuities come in many shapes and sizes each designed for a specific use. One annuity may have benefits another does not and it is important to know the features and benefits of each contract.

Single premium deferred annuity: As the name implies it is a one time deposit and no further deposits are accepted. A single premium annuity can be many different types such as a fixed annuity, an indexed annuity and a variable annuity. Each of these types of single premium deferred annuities has their own features and benefits. I will discuss each of these later.

Flexible Premium Deferred Annuity: This type of annuity allows for continual or sporadic additional deposits. Each deposit is added to the account value and can be deferred. Variable, indexed and fixed can all be flexible premium annuities.

Single Premium Immediate Annuity: These contracts are used to create an income stream. A single deposit is made and an income will begin at a pre-agreed upon time. These payments to the annuitant can be monthly, annually or most other time periods. Any time period for the payout can be selected from any number of years to a lifetime guaranteed payment.

Variable Annuity: Variable annuities are securities and are sold with a prospectus. Variable annuities allow for the annuitant to designate a specific type of sub account or investment for the funds to be invested in. These sub accounts are like mutual funds in the sense the money is managed by an outside source and there is no limit to the growth of the funds or the exposure to loss. The money in the variable annuity is not at the insurance company but is on deposit at the fund manager. Variable annuities do have a guaranteed rate of return section which usually is a lower rate of interest. Variable annuity owners may switch investments in the annuity in the event of a new investment goal is desired. These changes can be completed without any tax liability. The funds in a variable annuity are not guaranteed and exposure to loss is part of the investment risk. In the event of death, variable annuities will guarantee at least the return of the original investment in the event the account is lower.

Indexed Annuity: Indexed annuities are fixed annuities whose returns are set to an outside source such as the Dow Jones Average. The funds in an indexed annuity are on deposit with the insurance company and not actually invested in the indexes. There are numerous options for selecting the type of crediting rate and how it interfaces with the specific index. One strong positive about indexed annuities is the deposit is fully guaranteed to never lose money and once a new amount is credited to the annuity then that becomes the guaranteed minimum.

Fixed Annuity: Fixed annuities come in all sorts and sizes from a few years contract to a longer period. Some will fully guarantee the interest rates the entire time period while others will allow the insurance company to determine the interest credited year to year. The funds in a fixed annuity always have a minimum interest which is fully guaranteed. Fixed annuities also guarantee the full account value.

Annuities are not for everyone but for those that will benefit from these contracts they can be perfect. Safety and security is the basic attraction to an annuity and when these benefits are needed they can be of enormous value. Developed your expertise, understand which annuity products are right for the unique circumstances and needs of the investor and increase your annuity sales.

Bill Broich is a 30 year annuity salesman who helps agents increase their annuity sales. Visit his website to learn more. Annuity.com

History Provides Tons of Annuity Sales Leads

2008-03-02T21:58:00.000-08:00

Annuities have been with us for a very long time. Actually they date to the revolutionary times when Benjamin Franklin used annuities to help the Cities of Philadelphia and Boston provide funds for their citizenry. The last of these annuities lasted until 1991 when the City of Boston finally cashed it in.

Benjamin Franklin did not invent annuities although he was a great supporter of their benefits. Actually one of the first users of annuities was the Presbyterian Church. The Presbyterian Church used annuities to provide for old age ministers and their families way back in 1720. They expanded their use for widows and orphans and became a backbone of financial security for people of that time.

You might say that annuities are as old as our country and are a major part of the economic growth of America. It is true!

It was not until the tax Reform Act of 1913 that annuities were actually included in our tax code. All the years prior to then annuities were just part of the growing up of America. In 1913 tax rules and regulations of annuities were adopted. It was decided that annuities were so important to the continued growth of the American Economy that tax advantages were granted and are in place to this day.

Babe Ruth used annuities to avoid the risk of the stock market and thus was not hurt by the stock market crash of 1929. The Babe used annuities to provide a lifetime income for his wife and also for himself prior to his death.

I use this history to help my prospects feel comfortable about their decision to buy an annuity. I always say this..

?Annuities are the most boring products in the universe, safe secure and boring.? Their answer is always, that is what I want? boring. They do want boring because there is no risk involved with annuities; they are safe, secure and insured.

How are they insured and who actually guarantees them? I can?t think of a more regulated industry than the insurance industry, maybe atomic energy or some weird thing like that. As far as our industry is concerned, it is heavily regulated. If you do business as an insurance company in any state the safety of the insurance company?s products are guaranteed by three levels.

? The safety and solvency of the insurance company and it is monitored by the insurance commissioner?s department. Solvency is a must to continue business and it is the responsibility of each state to monitor the insurance company

? Every insurance company in each state guarantees each others solvency. Sort of a weaving of joint assets.

? The state guarantee fund in each state guarantees each annuity and life insurance policy. This fund is monitored and managed by the department of insurance. Many states have different levels of guarantees so it is smart to know what your state does guarantee.

I love to tell my annuity sales leads all about annuities and their long and splendid history so enter twinned with the history of America. Some points to remember:

? Annuities were not affected by the stock market crash of 1929 or any other year.

? Each annuity is guaranteed never to lose money.

? In modern history (1913) no one has ever lost a penny in an annuity because of insurance company insolvency

? Franklin, Ruth?..annuities are boring, just the way we like them

Sell our legacy and share the wonderful story of annuities with your clients.

Bill Broich is a 30 year annuity salesman who helps agents ramp up their annuity sales leads efforts. Visit his website to learn more. Annuity.com

10 Important Insurance leads-Annuity leads Marketing Tips

2008-02-29T21:47:00.002-08:00

Each of the following Ten Insurance leads-Annuity leads Marketing Tips is based on a highly effective - but often overlooked marketing tactic. How many are you using? How many have you overlooked?

Tip 1: Insulate yourself against the impact of change by increasing the number of Insurance products and services you offer ...and by using a variety of different marketing methods. For instance, you can use a postcard mailing to Senior Citizens from age 62 to 78 and income over $40,000. Every three weeks you would drip on them with another postcard. Also, you could do a quarterly newsletter. I like our "World Smallest Newsletter?" on a over sized postcard. Only a small portion of your total business will be affected if the sales of one product or marketing spoke on your marketing wheel declines or the response to one marketing method drops.

Tip 2: Insurance Clients are prospects too. Stay in contact with them. Find or develop other products or services you can offer them. It's easier to make a sale to a previous customer than to someone who never bought from you. Here's the ratio of marketing you should use. Front end marketing should be 25%. That's use postcards, letters, flyers and emotional type ads to generate business. You should be getting 25% of your business from "Critical Mass." That's by working your clients to offer more services and products to on annual review. Another 50% should come from using a systematic process of getting your clients to have their friends calling you. We go in depth on systems you can use to have a bundle of referrals.

Tip 3: Avoid making any claim that sounds exaggerated ...even if it is true. A bold claim creates doubt in your prospect's mind and jeopardizes the sale. Reduce any bold claims to a more believable level. Use third party articles to help make your claims hit home.

Tip 4: Express numerical claims as odd numbers with fractions or decimals. For example, "Our clients save 17.7 percent" sounds more believable than "Our clients save 20 percent" ...even if 20 percent is the accurate number.

Tip 5: Set up a Insurance leads-Annuity leads automatic mailing system that you can use weekly that will keep you in a steady flow of leads. We have developed a brand new "Ultimate Postcard System" that you can use that will do all your postcard mailings that will only take about 15 minutes a week. Thing of your business as a wagon wheel with spokes and the hub is the base. If you only have two spokes and one breaks your in trouble. However if you have at least 10 spokes and one breaks it won't be a problem. That's what you want your Insurance marketing business to have. You need to have systems in place for building referrals, current clients, center of influences, postcards, telemarketing, newspaper ads, etc. I highly recommend you start out 2005 with mailing out at least 1,000 postcards per week using our "3-Step Postcard Systems.?" www.ultimateinsurancesystem.com/specialreport.htm Tip 6: Develop a series of 4 or 5 different special Insurance leads-Annuity leads postcards. Use them one at a time on a quality lists. I also like to use income levels over $50,000. Our test show that 80% of these people have CD money. Continuously recycle through the same series of dripping of postcards. This enables you to keep using special postcards to generate sales without taking time to develop new ones.

Tip 7: If you're attracting many prospects who really don't have (or can't get) the money to buy your product or service ...you need to change your market. Target a market where prospects have an intense desire for the benefits produced by your product or service - AND the money to buy it.

Tip 8: Set yourself apart from competitors by offering an exclusive benefit your competitors cannot copy ...or one they're not willing to copy. One agent I know has positioned himself in the following way. He specialists in showing people how to have retirement money available from the 11 to the 20 year. People are out living their money.

Tip 9: Advertising Insurance leads-Annuity leads copy produces the biggest response when each reader can believe the message was written specifically for him or her. As you write any sales message, visualize you're writing to one person instead of to a large group of people. This will help you write in a less formal and more personal style. Personalize envelopes with head addressed and a real live stamp.

Tip 10: Most insurance sales are not made on the first contact. Develop a method to capture and save the names and contact information of prospects who don't buy from you. Follow up periodically. A little gentle coaching will eventually convert many of them into buyers. Develop a newsletter that you can send out on a monthly basis. It can only be a postcard or a 8.5" X 11" letter.

Each of these 10 Insurance leads-Annuity leads marketing tips implements a simple but highly effective marketing tactic. Take action now to apply those you overlooked. You'll be surprised by how much business it produces for you. Check out our "Lazy Agents Marketing System." I hope you enjoyed this article and you will apply some of the principals discussed. If you need marketing help just go to the following website Http://www.ultimateinsurancesystem.com/specialreport.com Yours for your success, Russ Jones Creator of the "3-Step Postcard System." www.Ultimateinsurancesystem.com

Creator of "The 3 Step Postcard System" Developer of "Annuity Pro Lead Capture Web Page System" http://www.pmrsystem.com

Radio Talk Show Annuity Selling System

2008-02-29T21:47:00.001-08:00

Pre-selling skills are as important as closing skills and more important than presentation skills. The more you pre-sell, the less you have to sell during the face-to-face phase. The more your prospects perceive you as the expert, the less you have to convince them you are.

Our new Radio Talk Show Annuity Selling System engages the power of perception in your prospects. It is not actually a selling system. It?s a pre-selling system. Pre-selling is the easiest, most time- and cost-effective part of the sales process.

Here's an example right out of history. In 218 B.C. when Hannibal led his army of 38,000 foot soldiers, 8,000 cavalry, and 37 war elephants across the Alps to do battle with the mighty Roman army, the march itself, not the ensuing battles won or lost, established him as the greatest military strategist in history. So admired and feared was Hannibal that, by reputation alone, many battles along his historic march to northern Italy were won without a single sword unsheathed, without a drop of blood shed.

This story demonstrates the awesome power of perception. This strategy applied to selling annuities will make you the undisputed expert in your field.

If you were your prospect, would you rather sit down with a ?nobody special? insurance agent or a well-known expert on the subject of financial retirement solutions, someone you listen to on the radio? You don't get a second chance to make a first impression.

Look at the world from your prospect?s point of view. Who would you rather discuss your retirement nest egg with, (a) an insurance agent who contacts you through telemarketing or direct mail, asking for an appointment, or (b) a prominent expert with his or her own radio talk show covering subjects like, How to Stop The IRS From Plundering Your Social Security, or Three Easy Steps to a Guaranteed Income For Life, or Why Your IRA Is a Ticking Tax Time Bomb and How To Defuse It.

An Annuity Selling System That Makes You The Expert

It?s a fact that 96% of the U.S. population listens to the radio at least once a week and 75% listen EVERY DAY. This is more than any other medium. Listeners pay more attention to guest speakers than they do to commercials. Which would you rather listen to, a commercial, or a guest with an amazing story to tell, a guest who can make you laugh, teach you something new, save you money, save you time, open up a controversial topic for you to argue about?

Notice I did not suggest a radio show guest who talks about ?why you should buy fixed annuities,? or even ?what an annuity is.? Your topic is your hook. Your hook needs to pull listeners in with the strength of a black hole.

Once your listeners tune in, you don?t want them to feel tricked because you launched into a sales pitch for a product. You want to let your personality radiate, to reveal the three-dimensional human being you are, and to give genuine take-home value by way of solutions to their financial problems.

Remember, nobody buys annuities; they have to be sold. Nobody wants you to sell them a product, but everybody wants you to help them discover a solution. If you can learn how to do this in a radio talk show format, reaching tens of thousands of listeners at a time, you will truly position yourself as the popular, trusted expert while propelling your insurance practice to record heights. You will have your own very personal pre-selling annuity selling system.

But who has time to script a compelling radio show? Should you just wing it and hope for the best? How do you tie your theme to a hot topic that people will clamor to listen to? Should you go live or pre-recorded? Do you take calls, give away freebies, go solo or be interviewed by a host? Yikes! Too many questions and not enough answers!

Until Now

Now, a limited number of annuity agents have a rare opportunity to participate in "Safe Money Secrets," our turnkey Radio Talk Show Annuity Selling System, with exclusive broadcast rights in protected territories.

If you are a licensed life insurance agent not currently contracted through Life Sales and wish to begin or advance your career selling fixed annuities, you may qualify for our Radio Talk Show Annuity Selling System. Come onboard with two or more of our carriers ? Allianz, ING, Sun Life Financial, or American Equity ? and receive 200 leads as a signing bonus. Then with your first 3000 QPCs (roughly $40,000 in paid business depending on carrier and product) within three months of coming onboard, you?ll be interviewed as a guest expert on "Safe Money Secrets" and receive your first half-hour pre-recorded radio show with exclusive broadcast rights, ready for airing in your local market.

We provide you with a script of all the questions, coaching on all the answers, anecdotes, segues, ways to make the phone ring and generate warm, pre-sold prospects. It's all done over the phone. I call you as host, interviewer and show producer. You are the exclusive guest expert in your marketing area. You speak from the comfort of your office or home with all your notes at hand, in your pajamas if you like.

I use professional recording and editing hardware and software to make you sound like a professional radio talk show star. I burn a broadcast-quality CD-ROM of your show, which you take to your local stations and shop the best demographics, listening audience, frequency, time slot, and rates.

Simply click on the link below to contact me. Then, as Charles Osgood says, "I'll see you on the radio."

http://www.Free-Insurance-Leads.com Gary Le Mon is a wholesale distributor of fixed indexed annuities for Allianz, American Equity, Sun Life Financial, and ING. Author and developer of the Safe Money Seminar, a financial planning seminar for Seniors, Gary serves as guest speaker on behalf of agents and agencies nationwide. He is coach, mentor and motivator to over 700 general agents in his insurance marketing organization, InsuranStar Marketing.

Rescuing Your Underperforming Annuity Account

2008-02-27T22:00:00.002-08:00

It was only a few years ago that interest rates plunged to historic lows. Conservative investors who needed guaranteed income and preservation of principal were in a bind. In many cases, returns at the bank were below two percent and fixed annuity accounts yielded only marginally better. Many of these cautious investors purchased fixed annuities rather than bank instruments in order to capture higher returns.

How times have changed. The United States economy improved significantly. Inflation pressure grew, and the Federal Reserve began to ratchet up interest rates while treasury yields increased in kind. While much of this was good news, it created problems for the annuity purchaser from just a few years ago.

Concerns with Older Annuity Accounts

If you invested in a traditional fixed annuity account during these low yielding years, you may find yourself in a dilemma. The problem: many of these accounts have fallen to their guaranteed minimum yields. Currently, they might only offer a paltry return between 2 and 3.5 percent. There are several reasons for this decline. To begin with, many annuity accounts have a first year bonus that will not be paid in subsequent years. In addition, these accounts often provide a floating rate of return. Their returns are not locked in. A floating rate annuity is quick to go down in years where yields are decreasing, but slow to come back up when yields in the treasury market increase. In essence, if you purchased an annuity in the lean years, you may have locked in poor yields for the duration of your account.

There are other issues as well. If your annuity has not reached maturity, you will have to pay surrender penalties if you cash in the account early. In addition, if you purchased a non-qualified annuity account, you may have accumulated tax deferred interest. Should you transfer your annuity to anything another than another annuity account, you could have income tax to pay. Taxes and penalties will quickly lower your account value upon early surrender.

How to Improve Your Fixed Annuity Returns

Rest assured ─ this is not a story of doom and gloom. The fix to this problem is simple. You simply exchange your old annuity for a new account. Rates have increased dramatically over the last three years, and newer annuities can lock in much higher yields. Furthermore, it may be a wise decision to lock in rates with a guaranteed fixed yield as oppose to a floating rate of return.

Unless your account is very new, the higher guaranteed yields can more than make up for any surrender penalties your may have. A sizeable account can accumulate thousands of additional dollars by making this change. (It is important to note that many economic pundits are already predicting that the Federal Reserve Board will begin to lower rates in 2007. This will most certainly force treasury markets and annuity yields lower for those who have not locked in higher rates.)

Income Taxes on Tax Deferred Interest ─ 1035 Exchange

Additionally, if income taxes are a concern, you should understand that taxes are not due if you transfer your old non-qualified annuity to a new annuity account. This is why owners simply transfer from one annuity to another in what the I.R.S. has deemed a 1035 tax-free exchange. Income taxes will only be due if and when you decide to take out your interest. If yours is a retirement account (also called a qualified account) you can simply perform a rollover. If done properly, (with the help of an experienced agent and/or accountant), a qualified rollover is not a taxable event either.

In summary, no longer do you need to dread your quarterly annuity statements. There are several reputable insurance companies providing very reasonable guaranteed returns. These products will provide you with higher yields, potentially shorter durations, liquidity and peace of mind. An annuity rollover or 1035 exchange can be a wise investment choice.

A.M. Hyers has been working in the insurance and investment industry for nearly ten years. He owns and operates Ohio Insurance Plan, an independent insurance agency doing business in Ohio, Missouri and Georgia.

His agency offers products to individuals, families and any size employee group. They use the leading national insurance carriers to offer quotes, illustrations and relevant information on life insurance, health insurance and HSA accounts. They also offer disability and long term care insurance as well as annuity policies, Medicare supplement plans and Medicare Part D coverage.

Visit them at:
http://www.ohioinsureplan.com
Learn more about fixed annuity products
Current annuity rates

Ramp Up Annuity Sales Using Secret Tool

2008-02-27T22:00:00.001-08:00

Lots of annuity sales with this Tool. Most of our competitors hammer us and our prospects about the surrender penalties in annuities.

7 years, 10 years, 17 years - YIKES!

I look at it differently. I love surrender penalties because they provide me with lots of future prospects and clients. How can that be?

It is the exclusion ratio. The exclusion ratio has made more annuity sales for me that anything I can ever think of. The exclusion ratio is a benefit we should all make certain our clients and prospects are aware of. Explain it this way:

If you convert accumulated funds in an annuity to an income stream you can access the exclusion ratio. The exclusion ratio is the percentage of income that is excluded from tax liability.

I like this example

? A $50,000 deposit has grown to a value of $100,000.

If the annuitant takes any funds from this account it is 100% taxable at ordinary income tax rates.

In our example let?s pretend that the annuitant selects a 10 year payout and we will round off the calculations for the sake of illustration.

? $100,000 will provide an annual payment of $10,000 for 10 years.
? $5,000 basis and not taxable, $5,000 interest and taxable.

The $5,000 basis is the exclusion ratio.

Because we have accessed the exclusion ratio we can ?spread out? the tax liability over the selected time period which in our example is 10 years. This means that only 50% of the income received is taxable. By spreading out the payment we have spread out the tax liability!

An annual payment of $10,000 will only have 50% tax liability. Mrs. Prospect, this allows you to completely manage your annual tax liability and to take advantage of the ?Exclusion Ratio.? How about selling the exclusion ratio to the client for the beneficiary?

Mrs. Prospect did you know that when your daughter receives these funds as your beneficiary she can also access the exclusion ratio??

Your beneficiary can accept the funds out over a fixed period of time and spread the tax liability over the payout period.

When a prospect asks me about surrender period I always say this:

?Mrs. Prospect, you cannot enjoy the benefits of this contract unless you allow the insurance company to hold your funds. There are many benefits you can enjoy with this product, have you ever heard of the exclusion ratio??

I use the power of the contract and the exclusion ratio to explain the need for surrender period. Easy to explain and makes for very happy clients. This is especially good when someone comes to me with an existing annuity. Often times they are not happy and did not understand the time period for the surrender penalties. I would say this..

?Mrs. Prospect, unfortunately your agent did not really understand your contract well enough. It is really not his fault; he probably did not have access to the training that I have had. Let me explain a terrific benefit of your contract, the exclusion ratio.?

Once I am able to explain this powerful benefit it is easy to sell another annuity to her. The benefits of the contact sell the annuity for me.

Bill Broich is a 30 year annuity salesman who helps agents increase their annuity sales. Visit his website to learn more. Annuity.com.

Annuity Marketing By Radio

2008-02-26T21:35:00.000-08:00

I know what you are thinking? I must be kidding - right?

Think about our target market. Who are they and how do they access their information? It is a statistic that only 7% of people over age 65 are online. That means that 93% of our target market is accessing information by other sources such as the newspaper, television and the RADIO!

How do you do it? There are many options available to you. Offer your services to the Saturday Morning local interest station. There are many of these and your cost will be zilch. They are always looking for guests and if you offer a newsworthy topic it is very easy to get yourself on the air and it will be a clever annuity marketing tactic.

A possible target may be, ?Uncover the facts about Long Term Care Insurance? or ?How to manage your IRA for maximum income.? There are so many topics available to you that a little imagination will leave you with endless possibilities.

How about pay to play? Easy to do and lots of sources. I like the idea of a Saturday Morning slot and if you can get it close to 10:00 it is perfect. Buy the air time for 30 minutes and talk about your list of topics. Have you ever thought about doing an annuity seminar on the radio? Just repeat the strong points of your seminar over the air and invite people to call in for questions.

Have the station capture the caller?s information like address and number.

Offer a booklet to mail out after the show. The callers are all solid prospects and because you are on the ?RADIO? you are a perceived expert!

Trade air time for commercials. This idea really works, offer the station an advertising commitment for air time. Trade $1,000 of commercials for the ? hour of air time.

What do you advertise?

Your radio program! How about peripheral annuity marketing? Ask the station for permission to use their name on your web site or your printed materials. Have fun with this and be informal while at the same time being the local ?EXPERT.?

Your radio show can be cross marketed to your existing client base and to all new prospects you meet. ?Oh, you are the radio guy.? Instant credibility!

There are numerous ways to find annuity leads, be different and be creative and your annuity marketing results will explode.

Bill Broich is a 30 year annuity salesman who helps agents ramp up their annuity marketing efforts. Visit his website to learn more. Annuity.com

Focusing on Annuity Benefits to Close Annuity Leads

2008-02-25T22:46:00.002-08:00

Annuities offer many unique benefits for senior adults and by focusing on these benefits you can close your annuity leads much more easily. More precisely, if you stay away from focusing on the yield of interest credited and refocus on the true and unique benefits available with annuities you will increase production dramatically. So what are the benefits?

The first benefit is ?Tax Deferral.? You can actually pay fewer income taxes by placing your warehoused money in an annuity. With an annuity you only pay taxes when you touch the funds, in other words, you are in complete control of your tax liability.

The second benefit is ?Triple Compounding? and is the result of tax deferral. If you defer your taxes then you earn interest in three separate areas.

? You earn compounded interest on your invested funds.
? You earn compounded interest on your accumulated interest.
? You earn compounded interest on the tax liability of the money you would have sent to the government.

The third benefit is ?Tax Advantage?. If you own an IRA and you are 70 ? years of age you must begin withdrawal of your funds under the Required Minimum Distribution Rules. Annuities enjoy the same tax deferred status of an IRA but are EXEMPT of the required minimum distribution rule. No FORCE OUT at age 70 ? or at any age!

The fourth benefit is ?Access? to your funds and withdrawal. Many competitors such as banks and stock brokers use the withdrawal provision as a negative. In actuality it is a complete positive. Here is how you remove funds from an annuity.

? Access of 10% of your account value annually.
? Monthly earned interest, you are allowed to withdraw the earned interest on a monthly basis
? Income for any time period. At anytime you are allowed to convert your ?pile? of money to an income stream for any time period you choose.
? Beneficiary, your beneficiary is entitled to 100% of your funds at anytime.

The fifth benefit is ?Growth.? Your account is guaranteed to only grow. Your funds are fully guaranteed to increase and never decrease! All annuity contracts have a minimum guaranteed interest that will be credited regardless of what happens to our economy.

The sixth benefit is ?Avoiding Probate.? If an annuity has a specified beneficiary the funds from an annuity avoid probate and are paid directly to the beneficiary without any delay or expense. This allows the beneficiary to avoid legal expense and time delays in receiving the funds.

Annuities can be wonderful products when used for the benefits they contain. Less tax liability, liquidity, guaranteed growth and guaranteed income are all benefits that can be enjoyed with annuities. Agents should not focus on the rate of return and simply explain the unique benefits. Follow this one simple tip with your annuity leads and you will close more sales.

Bill Broich is a 30 year annuity salesman who helps agents find quality annuity leads and close more business. Visit his website to learn more. Annuity.com

News Article Expert Annuity Lead Program

2008-02-25T22:46:00.001-08:00

Are you an annuity agent looking for a surefire lead program? Try writing news articles for your local newspaper. Neighborhood newspapers gladly print compelling copy of interest to readers. You also position yourself as the expert in your field and, being perceived as the expert, your sale is practically in the bag even before you meet your prospect.

Successful annuity agents are those who position themselves as the "expert" in their field. An expert is held in higher regard than a salesperson. An expert substitutes the sales presentation for a polished dialog of probing, educated questions that expose symptoms of financial disorder. After proper diagnosis, an expert does not attempt a close. An expert simply prescribes a cure, finishes up the paperwork and moves on to the next patient or client, the unspoken question being, "Do you want to stay sick or do you want to get well?"

Experts are experts because their reputation precedes them. It's all in the setup. There is no reality, only perception. If the prospect first hears about you by reading your newspaper article, you are already the expert. People want to be clients of experts for many reasons, including bragging rights. Sales transactions are pretty much understood even before appointments are set. Your starting point in the sales process is leaps and bounds ahead of the competition. Your annuity lead program is uniquely personal. And one of the most powerful ways of becoming the expert while generating referral-quality leads is through systematically submitting topical, high-content news articles for publication in hometown Senior newspapers.

Newspapers hunger for news and will gladly print informative content, especially from a local expert whose specialty is of interest to their readers. Articles of 400 and 600 words in length should be submitted periodically, should be informational (not a sales pitch) and filled with take-home value. The author's name, photo and contact information is included in case readers wish to pursue additional information or contact the expert about specific concerns. There is no cleaner annuity lead program, no higher quality lead than a news article inquiry.

Unfortunately, most successful annuity advisors don't have the time to write compelling news copy. I've known successful agents barely capable of constructing one-word sentences. But now, a limited number of agents have the opportunity to participate in our News Article Expert Annuity Lead Program.

In the time-honored tradition of ghostwriting, I provide qualifying agents with a new article each month, packed with vital information on Senior financial issues. Territories are exclusive to avoid overlapping geography, and I include my author's release of copyright allowing you to list your name as author, your photo and contact information.

If you are a licensed life insurance agent not currently contracted through Life Sales and wish to begin or advance your career selling fixed annuities, our News Article Expert Annuity Lead Program is for you. Come onboard with two or more of our carriers - Allianz, ING, Sun Life Financial, or American Equity - and receive 200 leads as a signing bonus. Then with your first 2000 QPCs (roughly $40,000 in paid business depending on carrier and product) in any one month, within two months of coming onboard, you'll receive your free six-month subscription to our News Article Expert Annuity Lead Program. Remember, territories are exclusive and you will receive my ghostwriter release of copyright.

3 Reasons To Sell Your Annuity Now

2008-02-14T00:50:00.000-08:00

Selling an annuity can be a difficult decision for some people. If that?s you then I want to let you know up front that selling your annuity is only something you can determine whether or not the time is right for you.

If you are thinking about selling your annuity then I want to give you 3 reasons why you might consider doing so now.

Sell Annuity Reason #1 ? More Flexibility

While having some scheduled payments can be great, some annuities do not offer the flexibility one might need. With structured settlements and payments, this can work great for some and be a terrible situation for others.

You?ll need to decide if your current situation calls for more control over your income. If so then you might want to consider selling your annuity now.

Sell Annuity Reason #2 ? Better Investment Vehicle This reason is one of my favorites. The annuity might pay a nice amount over a certain time period, but you might have been presented with a better opportunity to leverage your funds.

Only you and your advisor can determine that, but if you have a better situation in hand that will allow you to increase your investment at a much quicker time rate then you should definitely consider selling your annuity now to cash in on the opportunity.

Sell Annuity Reason #3 ? Liquidity

Okay, this is a no-brainer. You may want access to your funds, well?just because.

There?s no rhyme or reason, you just want to have more control over your money and faster access to it. If that?s the case then don?t feel bad. Having the money available to do whatever you wish with it can be a little bit more comforting than knowing you have to wait for it.

In closing I would recommend that you talk with an advisor to find out the best situation for you and which company you should go with to sell your annuity for one lump sum.

There are some companies that deal specifically with structured settlement companies who can give you great service and make the process easy as pie.

You?ll definitely want to go with a company like the one I mentioned above.

James Carter writes helpful information on how to Sell Your Annuity Now! To get more FREE information go to: http://www.my-search-help.com/Settlement/index2.htm

Buyer Of Structured Annuity Settlement - How To Find the Structured Annuity Buyer That Suits You

2008-02-12T23:13:00.001-08:00

Annuities are important and valuable policies for many senior citizens in the USA. Sometimes, however, any one of us may have need to plan for the future differently. Our plans may change, we may require cash fast and decide to sell the annuity or part of it for a large lump of cash.

Annuities are usually paid annually in small amounts and for some people, it may not be enough to support their lifestyle. Many people need cash today to invest in their own business even after retirement, some may have loans to pay off, or many people with good financial standing would rather have a large sum in advance, than having small payments deposited annually. Selling your annuity may give you more leverage for your "future" money, today.

It must be noted that selling your annuity, may have tax implications so it would be wise to have some idea of your situation.

There are a few reputable financial companies on the market that will work with you and based on your situation, provide you with the plan that may suit you best.

Even if you have already decided to sell your annuity, it would be extremely wise to shop around. This point cannot be stressed enough, as many people accept the first offer they come across and think this is the best they can do. Because of the years involved, even a small percentage variation in time periods can mean difference in hundreds of dollars in, or out of your pocket.

Use the internet, obtain as many quotes as you can, and make informed decisions. In addition you will gain more knowledge in the process.

If you are serious about your financial future than be sure to read "Buyers of Annuity Structured Settlement" article at http://lump-sum-structured-settlement.savehog.com Where you will find variety of valuable information including links to free instant online quote from annuity buyers, as well as host of online resources and calculators.

LeadZILLA: Best Annuity Lead Program?

2008-02-12T23:12:00.000-08:00

LeadZILLA, a direct mail annuity lead program, won the Readers? Choice Award in a survey of independent annuity producers polled by Senior Market Advisor Magazine. But after thoroughly testing the system myself, do I see LeadZILLA as king of the jungle or a big bag of gas? I have invested thousands of my own dollars into LeadZILLA to generate leads for my own general agents to use, and I?ve learned a few lessons along the way.

The numbers speak for themselves. My first mail drop was on September 23, 2005 and, as of this writing, I have used LeadZILLA continuously for the past fourteen months. I have mailed out 44,800 pieces in 224 drops and received 1,295 direct response cards back in the mail. This is a response rate of 2.89% and an average of 5.77 lead cards for each 200 piece drop.

The lead system's proprietor boasts an average of 6 lead cards returned for every 200-piece drop. My average of 5.77 cards is close enough that I?m not going to snivel over the .23% difference. As we in the insurance industry know, pools of statistics paint with a broad brush. I?ve seen return rates ranging from zero cards back to 20 back, each from 200 pieces mailed out. Individual return rates are one of those mysteries of life, but I always advise my agents to select zip codes on the outskirts of town and away from affluent neighborhoods.

The good news is that LeadZILLA is part of a Marketing Allowance Program (MAP), which makes it free with production. For every (roughly) $40,000 in annuity premium issued by one of four carriers ? Allianz, American Equity, Sun Life Financial, and ING ? the agent receives a 200-piece mail drop. On average, each piece of business leads to six additional prospects, which in turn leads to more business and more prospects in a self-perpetuating cycle.

But this cycle is quickly broken with this or any lead system when the agent tries to take the lazy way out. Do not (I repeat, DO NOT!) destroy a perfectly good direct response lead by picking up the telephone and becoming a cold-call telemarketer. You?ll be lucky to set an appointment with one in six prospects, and you?ll quickly join the ranks of the 90% of insurance agents who fail. Instead, route out your cards, get in your car and spend an afternoon using the Drop-By System.

Here are the steps to remember with the Drop-By System. Park your car directly in front of your prospect?s home or in their driveway. Leave the engine running and the door open. Get out of your car, turn and wave at the front window as if someone saw you drive up. (In case someone did see you drive up, they?re busted!) Knock on the door and stand sideways a few feet away. When your prospect comes to the door, glance at your watch and say, ?Hello, may I speak with Mr./Mrs. (Name on card)? I?m (Your name) and I only have a minute, but I was passing by your street and thought I might stop by to set up an appointment to go over this information you requested (show them the lead card they filled out and signed). Is Thursday morning at 10 good, or is Friday morning at 9 better?? Let the conversation go where it will. Some of my biggest annuity sales started out discussing Mr. and Mrs. Prospect?s cat.

They can?t very well hang up on you. They can, however, see that you are a living human being with ?evidence? in your hand, a smile on your face, and a simple duty to fulfill their request for information. You?ll set appointments with four out of six prospects. What?s more, when you return for the appointment you won?t be a stranger. Odds are you?ll leave with deal in hand.

I have additional information on LeadZILLA and other annuity lead and insurance lead programs. Feel free to contact me. Direct mail lead generation is one of the best methods I have used in my decades of direct sales. Popular vote says LeadZILLA is the best. Who would argue with the king of the jungle?

Structured Settlement Annuity Sale for Lump Sum - Should You Get Your Cash Now?

2008-02-11T01:54:00.001-08:00

What If You Do Not Want to Wait for Your Structured Settlement Money?

When structured settlements are awarded from lawsuits such as product liability, personal injury, or accidents, in general an insurance company buys an annuity. This annuity pays a mixture of principal sum and an interest over an agreed period of time at a schedule that is agreed with the structured settlement payee. Having said that, the structured settlement recipients may be in a financial situation where the money is needed immediately and cannot wait for the cash to be paid in small sums. Fortunately, the structured settlements can be exchanged for a large lump sum payout for all or some of the recipients? future annuity payments. You can basically sell small part or your entire future entitlements to be paid over the years for a lump sum of cash now.

Should You Sell Your Structured Settlement or Annuity Now for Cash?

A Structured Settlement is designed for paying out for the financial obligations over a period of time, but what if you need your money today? Selling your structured settlement or your annuity for cash can be a lifesaver in some situations and fortunately, there are a few reputable companies that can pay you a large lump sum in exchange for your future payments from structured settlement. However, how do you know if selling your annuity or structured payments is the best option for you? After all, every person's situation is different. If you are in debt or require cash immediately, it may be prudent to sell all or part of your entitlements. This can potentially save you hundreds, or thousands of dollars that you would otherwise have to pay in interest.

Whether you have already decided to sell your structured settlement or annuity for cash, do shop around for best deal! Getting a good deal when it comes to structured settlements or annuities does pay off. You may end-up with much more money in your pocket as few fractions of percentage can make a big difference over the years.

Go ahead and use the Internet for research on your structured settlement or annuity.
Rush over to the Structured Settlements vs. Lump Sum of Cash article at SaveHog.com lump-sum-structured-settlement.savehog.com section, where you will find a variety of valuable information about structured settlement and lump sum, as well as host of online resources, calculators and structured settlement companies that can provide you with a free quote on structured settlement lump sum.

Annuity FAQ: Answers To Some Basic Annuity Investing Questions

2008-02-11T01:53:00.001-08:00

* How much should I invest in an annuity?

The amount of money that you invest in an annuity will depend largely on your capability to pay the premiums offered by the assurance company. Things to consider when putting money to an annuity include:

- Your probable financial needs

- Type of investment portfolio

- Alternatives available

The most important thing to consider is your financial needs, especially at times when you really need cash to finance something like the birth of a child delivery or an unforeseen accident or illness. However, you must also consider the regulations on withdrawal against the annuity, because it can be a bad scenario if you find yourself being served a penalty just because you withdrew large amounts from your annuity account when it was not permitted on the plan you purchased.

* What is a deferred annuity?

A deferred annuity pays out to investors interested in getting an income from an annuity, but who want the payments to begin some time in the future, usually at retirement. Or, they may want the insurance company to invest the money for a few years to increase the payments. A tax deferred annuity allows income tax to be deferred until the money is withdrawn, and you can contribute as much money yearly as you like.

* What is an immediate annuity?

An immediate annuity is an investment policy usually purchased from an insurance company. Immediate Annuities are sometimes known as Single Premium Immediate Annuities. Immediate annuities are commonly purchased with a lump sum and used as a retirement investment. In an immediate annuity, the investor begins to receive lump sum pay-outs anywhere from immediately to one year from the date of purchase. Generally, payments begin one month after investing in the annuity.

Immediate annuities can be fixed or variable. While a fixed immediate annuity payment depends on the amount you contributed, your age, as well as the interest rate at the time or purchase; a variable immediate annuity depends on the type of investment purchased.

There are a variety of different options available to you when purchasing an immediate annuity. You can decide whether you would like a set period of payments or a lifetime of payments. You can also decide on whether the payments are solely for the person who holds the policy or also for a secondary person, such as a spouse.

* What are the advantages of annuities?

There are three principal advantages to an annuity:

1. Tax-deferred accumulation. This allows you to set aside the funds that you pay into the annuity for as long as you want, without worrying about exceeding federal tax limits.

2. Flexibility. An annuity can offer you a variable or a fixed return, unencumbered by federal tax limitations.

3. Security. An annuity offers a fixed-income payout option which would grant an income that cannot be outlived.

* How will I receive my annuity payments?

There are several pay-out methods available when you begin receiving annuity payments. With some options, you or your beneficiaries can select how you want to be paid. The following are some of these:

You can get income for your entire lifetime even when the money in your annuity account has been used up. This is advantageous if you live to an advanced age because it will maximize the income that you will receive. However, there is a risk involved: when you die, all the money cannot be claimed, even by your assigned beneficiaries. If you die young, you simply lose this money.

Another is the joint and survivor annuity where it pays you during your lifetime, and after your death your beneficiary (usually your spouse) will also be paid during his or her lifetime.

You can also refund your annuity, meaning you're gaining income for life. However, when you die, the portion if the income payments that you have not collected will be the only amount that your beneficiary receives.

Alex Trenor is editor of Annuity Yes, the online guide to Annuities. He also writes Annuity FAQ's for PrettyGreatAnswers.com.

LeadZILLA Voted Best Annuity Lead Program

2008-02-09T01:12:00.001-08:00

America's annuity agents have spoken. LeadZILLA, a direct mail annuity lead program offered by Life Sales, wins the Readers' Choice Award in a survey of independent annuity producers polled by Senior Market Advisor Magazine. The votes are in, but after mailing out 44,800 pieces in 224 separate drops, do I see LeadZILLA as king of the jungle or a big bag of gas?

No doubt I was thrilled to read about LeadZILLA taking top honors for best direct mail annuity lead program in the Senior Market Advisor Readers' Choice Awards. After all, I am a principal AFMO in the marketing organization, Life Sales, the lead program's proprietor. And knowing the votes were cast by independent annuity agents nationwide made the victory even sweeter. But having invested thousands of my own dollars into LeadZILLA to generate leads for my own general agents to use, I've learned a few lessons along the way.

Life Sales boasts an average of 6 lead cards returned for every 200-piece drop. My average of 5.77 cards is close enough that I'm not going to whine over the .23% difference. As we in the insurance industry know, pools of statistics paint with a broad brush. I've seen return rates ranging from zero cards back to 20 back, each from 200 pieces mailed out. Individual return rates are one of those mysteries of life, but I always advise my agents to select zip codes on the outskirts of town and away from affluent neighborhoods.

The good news is that LeadZILLA is part of Life Sales' Marketing Allowance Program (MAP), which makes it free with production. For every (roughly) $40,000 in annuity premium issued by one of its four carriers - Allianz, American Equity, Sun Life Financial, and ING - Life Sales gives the agent a 200-piece mail drop. On average, each piece of business leads to six additional hot prospects, which in turn leads to more business and more prospects in a self-perpetuating cycle.

But this cycle is quickly broken when the agent tries to take the lazy way out. Do not (I repeat, DO NOT!) destroy a perfectly good direct response lead by picking up the telephone and becoming a cold-call telemarketer. You'll be lucky to set an appointment with one in six prospects, and you'll quickly join the ranks of the 90% of insurance agents who fail. Instead, route out your cards, get in your car and spend an afternoon using the Drop-By System.

Here are the steps to remember with the Drop-By System. Park your car directly in front of your prospect's home or in their driveway. Leave the engine running and the door open. Get out of your car, turn and wave at the front window as if someone saw you drive up. (In case someone did see you drive up, they're busted!) Knock on the door and stand sideways a few feet away. When your prospect comes to the door, glance at your watch and say, "Hello, may I speak with Mr./Mrs. (Name on card)? I'm (Your name) and I only have a minute, but I was passing by your street and thought I might stop by to set up an appointment to go over this information you requested (show them the lead card they filled out and signed). Is Thursday morning at 10 good, or is Friday morning at 9 better?" Let the conversation go where it will. Some of my biggest annuity sales started out discussing Mr. and Mrs. Prospect's cat.

They can't very well hang up on you. They can, however, see that you are a living human being with "evidence" in your hand, a smile on your face, and a simple duty to fulfill their request for information. You'll set appointments with four out of six prospects. What's more, when you return for the appointment you won't be a stranger. Odds are you'll leave with deal in hand.

Call me for more information. LeadZILLA is, after all, one of the best direct mail annuity lead programs I have used in my decades of direct sales. Popular vote says it's the best. Who would argue with the king of the jungle?

Annuity Settlement Options: Annuitize or Lump Sum?

2008-02-07T22:36:00.001-08:00

Annuity settlement options can be puzzling. Many people have purchased annuities of all types for the tax deferral feature. For many retirees the time has come to make the shift from accumulation to payout. Here are some considerations to help determine what?s best for you.

The most popular annuity settlement option is annuitization ? to take payments over a time frame that you select, which may include the rest of your life. When you annuitize, you receive payments (monthly, semi-annually, annually) in exchange for surrendering your annuity to the annuity insurance company. Your annuitization options usually include:

Lifetime Income

Period Certain

Period Certain Plus Life

Here is how Lifetime Income works. Let?s say you have $100,000 in an annuity and the insurance company calculates that, due to your age and gender, it will pay you $1,500 a month for as long as you live. You collect $1,500 the first month, $1,500 the next month, and $1,500 the following month. Then you get run over by a truck and die. You bet the insurance company you would outlive your $100,000 and you lost. $4,500 is all you get; they keep the rest. This is maybe not such a good deal.

Your second option is called Period Certain. This means you can take your money out over a period of 5, 10, 15, or 20 years. The insurance company guarantees to pay out all your money (plus interest) over that period. If you do not live to the end of the period, your beneficiary gets the remaining money in your annuity over the balance of the period. Live or die, you or somebody else gets back all your money.

The third option is Period Certain Plus Life. Here the insurance company guarantees to pay you a check each month for a certain period of time, plus, if you live beyond that period (even if you live to be 150 years old) you?ll receive monthly income that you cannot outlive.

The choices are not so simple. A monk in a monastery, for example, may well expect to live to a ripe old age and do better with a Lifetime Income (Although I wonder what he would spend the money on). Someone with a terminal illness may want to take a lump-sum settlement or a 5-year Period Certain. Take a close look at factors such as your health and spouse?s health, your age and spouse?s age, other sources of income, and your tax bracket.

For more flexibility you could opt for Systematic Withdrawals. In this case, you would receive a fixed percentage of the account value or a fixed monthly amount. You could stop this arrangement at any time and simply withdraw your remaining balance.

Although Systematic Withdrawals appear to have advantages over annuitization, note these two differences: With annuitization as your annuity settlement option, you can lock in a guaranteed monthly income regardless of the performance of your annuity. In addition, annuitization lengthens the tax deferral period since only part of each payment is taxed. The IRS considers the other part of your payments a return of principal.

Finally, you may want to just keep the annuity growing and not take payments at all. Some annuities, however, do not allow this and force withdrawals by a certain age. One option for you is a tax-free exchange to another annuity that may have more liberal withdrawal requirements, but watch out for surrender charges on your existing policy.

You probably never thought getting a check could be so complicated. It?s really not as messy as it sounds. In fact, I have annuity agents all across America who specialize in solving such problems. There is no charge or obligation. To have your choices compared, we would be happy to review any type of annuity settlement option and figure the most appropriate withdrawal option for you. Just click on the link in my bio below and fill out the form.

http://www.insurance-quote-advisor.com/annuity-settlement-options.html Gary Le Mon is a wholesale distributor of fixed indexed annuities for Allianz, American Equity, Sun Life Financial, and ING. Author and developer of the Safe Money Seminar, a financial planning seminar for Seniors, Gary serves as guest speaker on behalf of agents and agencies nationwide. He is coach, mentor and motivator to over 700 general agents in his insurance marketing organization, InsuranStar Marketing. See also Free-Insurance-Leads.com.

Annuity Lead Scam Watch

2008-02-06T22:03:00.001-08:00

Although annuity lead scams are out there, agents agree that leads are the lifeblood of their business. No matter how good the products or presentation, without a qualified prospect there can be no sale. Annuity agents also agree there is a vast difference between a lead and a qualified prospect. If you are among the majority of agents who depend on lead generating companies to supply both prospects and suspects, you need to know the standards and definitions of a legitimate lead, a qualified prospect, and an outright scam.

Leads fall into two categories, raw and qualified. Raw leads are generated according to demographics. Qualified leads are further refined by the subject's level of interest in you and your products. All leads should be filtered by specific criteria which often includes age, income, geography and possibly home ownership and marital status. When you pay extra to have your leads qualified, you refine your list of suspects down to prospects.

Annuity lead costs can range from 10? to 75? for each name on a raw list, up to $10 to $35 each for individuals who have qualified themselves by (a) knowing who you are, (b) knowing what you sell, and (c) agreeing to talk to you further. Internet leads and direct mail/direct response leads are often well qualified and worth the investment. Insist on exclusivity (you are the only agent getting the lead) and freshness (the fresher the better). Anything less can be a waste of time.

Telemarketing is still a viable means of lead generation, but there are two red flags to watch out for. Beware of companies using immature, inexperienced telemarketers who have an hourly quota to fill or who get paid per lead generated. Ask specifically who makes the calls and how they are paid. Another bad omen is the telemarketing company that charges per lead instead of by the hour. In my 30 years in the lead business I have never found a telemarketing company that consistently generates a predetermined number of leads at a fixed cost without compromising the quality. Unfortunately, most annuity agents opt for the false sense of security of knowing how many leads they get for their money instead of how good the leads will be. Quality is always the bottom line.

The gold standard of qualified leads is the preset appointment. This prospect fits the demographic and is further qualified by (a) knowing who you are, (b) knowing what you sell, and (c) agreeing to meet with you at a time and place to hear your presentation. Salespeople of all persuasions yearn for the days when they can leave prospecting behind and just do what they do best: sell and close, sell and close. But this yearning often overpowers better judgment, and many promising careers have been cut short by preset appointment programs that sound great but just don't deliver.

Ironically, the preset appointment program I hear cursed most often is the one promoted by the highest grossing field marketing organization in the country. Every agent I talk to (that's 100%) describes them as a complete waste of money. One agent told me he was quoted a fee of $5,614 for 40 appointments, of which only 25 would be replaced in case of a no-show. As expected, their standard operating procedure is to use immature, inexperienced telemarketers who have an hourly quota to fill or who get paid per lead generated. They also charge per appointment instead of by the hour.

In all fairness to legitimate annuity lead producers, however, there are three things an agent must do with every lead or appointment that often get neglected. First, assuming the leads can be emailed or posted to a web calendar as soon as they are generated, the agent must call the prospects and confirm the appointment time, place and date. Do not talk product. Just confirm and show up.

Second, if you purchase direct mail/direct response leads, do not take the lazy approach of calling for an appointment. It is imperative you use the Drop-By System. If you try to skip the work by calling for an appointment, you are just another junk phone caller - even though they signed the postage-paid card and mailed it back asking you to call them. Your appointment setting rate will struggle to reach 20%. But if you follow the Drop-By System to the letter, your appointment setting rate will soar to between 60% and 80%.

Third, before you spend any money on annuity leads or preset appointments (or before you use up the free leads your marketing organization gave you as a recruiting bonus), make sure your presentation and close are well rehearsed and brightly polished. I often hear agents say, "Just give me someone to talk to, I can sell anybody." The next thing I hear from them is, "These leads stink!"

Annuity lead scams are out there. But fortunately, there are enough good companies to keep faith (and production) alive. If you want to report on an exceptionally good, or bad, annuity lead generating company you've had experience with, please drop me a line by clicking on one of the links in my bio below.

http://www.Free-Insurance-Leads.com Gary Le Mon is a wholesale distributor of fixed indexed annuities for Allianz, American Equity, Sun Life Financial, and ING. See also Insurance-Lead-Programs.com

First Rule In Annuity Seminars: Fill The Room

2008-02-05T22:18:00.001-08:00

You need to fill the room because perception is everything. If you begin your Safe Money Seminar with empty tables and chairs in the room, those people who do show up will question whether they should have. The trick is to gauge attendance based on RSVPs. If you have 40 RSVPs for the event, figure 30 will show up. Then set the room up for 20 to 25. It sends a more prosperous message when you have to break out additional tables and chairs to accommodate the overflow. "Standing room only" is your perceived image. On the other hand, having empty seats at your meeting is just lame.

Holding your retirement planning seminar at the right restaurant will help fill the room. A safe bet is an Olive Garden style restaurant. Avoid Mexican food, Chinese food and pizza joints. Limit dinner choices to one: a salad with a single entr?e of general appeal. You can't go wrong with a chicken and pasta plate. Include a glass of ice water at each place setting. That's it; no iced tea or Coca Cola. Never pass out menus, and limit waitress involvement to serving the food then disappearing.

In choosing a restaurant, stop by several possibilities around 4:30 on any given afternoon. If you see a lot of Seniors there, it means they like that restaurant and are familiar with it. Just make sure your entree is a notch above the typical early bird special.

Always remember that a Safe Money Seminar is not a teaching event and not a sales event. It's a social event! Now that you've managed to fill the room, don't set it up like a classroom or like a horseshoe. Set the room up just like people sit in a restaurant - 2 per table or 4 per table at most. And don't think it's you they're coming to see. It's your food they're coming to eat. You are just the dinner show. Remember, you must get people to (a) like you and (b) respect you, if they are to give you that all-important appointment. Now that you've gone to so much trouble setting the stage, go out there and show them your star power!

The most effective form of advertising to fill the room is direct mail invitations. Direct mail allows you to target your demographic. You can sort your mailing list by several parameters, but age (60 plus) and address (within 5 miles of the restaurant and your office) are all that really matter. Wedding style invitations look nice and cost around 75? each. Simple post card invitations cost around 30? each and often wind up under a refrigerator magnet for future reference. Surprisingly, both wedding style and post card invitations pull about the same. But with post cards you can mail approximately 2 ? times the quantity for the same money.

Expect between a .75% and a 1% response on your mailings. By mailing 10,000 pieces, you'll get 75 to 100 RSVPs, of which around 50 to 70 will come out to your two seminars. This will fill the room with 25 to 35 attendees per night, which keeps it cozy and gets you up close and personal.

Another way to boost your response rate is to add emotional appeal to your invitation's headline. For example, which headline gets your attention better? (a) "You're Invited To Our Safe Money Seminar" or, (b) "Five Serious Mistakes That Wipe Out Retirement Savings, And Simple Ways To Avoid Them." The answer is B. Few people will show up to a Safe Money Seminar. We don't use our seminar's name in the invitation because it's not an emotional draw. But once the people are in their seats, stop teasing them and start rewarding them. "Ladies and gentlemen, welcome to our Safe Money Seminar," is now music to their ears. Remember, people act on emotions then justify their actions with logic.

The seminar business is all about working the numbers and setting enough appointments so that if one or two should cancel (which they will) what you get is an unexpected but much needed break between eager, pre-sold prospects. As always, keep your eyes on the prize: This is a career objective leading to seven figures annually. Fill the room, set the stage, make a million. http://www.Free-Insurance-Leads.com Gary Le Mon is a wholesale distributor of fixed indexed annuities for Allianz, American Equity, Sun Life Financial, and ING. Author and developer of the Safe Money Seminar, a financial planning seminar for Seniors, Gary serves as guest.

Fixed Annuity Product Sheets - What are They?

2008-02-04T22:35:00.000-08:00

Fixed annuity product sheets can be considered to be like briefs that concisely explain what types of annuity products are offered from outside carriers. For those of you who may not be familiar with fixed annuities this is a type of life insurance payment that is guaranteed to be a certain amount a month.

In essence, fixed annuity product sheets are easy-to-understand information sheets that can help you quickly and easily decide which type of annuity product is best for you. If you are shopping for insurance these info-at-a-glance type charts and sheets simply make it much easier for you to play ?contrast and compare? when it comes to finding the life insurance plan that is best for you.

If you go online you will be able to find hundreds of these fixed annuity product sheets. In fact one insurance broker alone offers over three hundred of them to peruse if you happen to be shopping for insurance.

On these sheets you will find essential information such as the annuity's rate of return, the amount of the death benefit (should the annuitant die before the payout.) You will also find out the amount of tax-deferred profit that will go to you instead of the taxman if you opt to go for that particular life insurance product.

You can also get product sheets for variable annuities. Variable annuity products are different then fixed annuity products because they are not based on a fixed interest rate. For this reason fixed annuity products are perceived to be more secure than those that are not.

Another important detail that you will find on the fixed annuity product sheet is just how much money you will be penalized if you need to withdraw from the account before your payment is due. This is important as some life insurance companies really do charge exorbitant fees and penalties for early withdrawal of funds.

Tiffany Walker has finally revealed her annuity secrets online. Read the latest by clicking here: Annuity cost basis.

Buy Fixed Annuity

2008-02-03T22:23:00.000-08:00

Annuity can be bought in different forms. However, the deferred annuities come under three main categories. They include fixed annuity, variable annuity and the equity-indexed annuity. Each has its own characteristics and offers varying returns and benefits. Fixed annuity is one the most popular of annuity offered in the financial market. In this form of annuity, the risks are minimal and are the liabilities of the financial company ? also known as insurer - offering it. However, the investor ? also known as the insured - has no risks on investments, whatsoever.

Generally, the terms of fixed annuity hover around the following main aspects. The insurer offers to pay you a fixed amount of return on your investments for a certain amount of years. The insured has the option of paying the investment money either as lump sum amount or paid over a period of installments.

Now whatever be the market conditions, the insurer has to pay the insured the fixed amount as guaranteed in the agreement. This feature makes fixed annuity the safest and surest way to make assured returns on investment. The issuing financial company offers to reimburse both principal and the earnings.

However, there is a flip side to it too. If the prevailing market conditions are buoyant, the investor has to be content with only the assured amount of return. While insurer, on the other hand, makes handsome gains from the invested money. Conversely, there are some issues that an investor should consider before buying fixed annuity.

It?s not ideal to invest in an annuity unless there are ample contributions to other retirement plans, such as an IRA or 401(k). Simply because, these plans offer the same tax deferral as annuities minus the fees. And if an investment is made in an annuity inside a tax-advantaged account, there would be no extra tax benefit to avail. The other repelling factor is the 10 percent penalty an investor under the age of 59 ? has to pay on earnings. It?s also advisable to check the credentials of insurer before making investments. Insurers with AA or higher ratings reflect positive financial strength of the company.

Buy Annuity provides detailed information on Buy Annuity, Buy Annuity Leads, Buy Fixed Annuity, Buy Retirement Annuity and more. Buy Annuity is affliated with Fixed Annuities.

Annuity Cost Basis and Previously Taxed Money

2008-02-01T22:37:00.001-08:00

Before you think of withdrawing any money from your annuity you should look into what type of annuity cost basis is defined in your agreement with the life insurance company. This is because if you are not careful you could easily exceed your annuity cost basis and be taxed heavily from borrowing from the policy.

You should also examine the annuity cost basis before you buy an annuity of any kind as it could impact how much you might have to pay if you had to withdraw that money for an emergency one day. After all one never knows when a sudden illness or accident may require digging into your retirement money.

Technically the annuity cost basis is defined as the initial payment or premiums that you paid out when you purchased a nonqualified annuity. In this scenario you have already paid taxes on the money so you will not be taxed to the gills if you have to withdraw the money.

Sometimes the annuity cost basis is not taxed upon withdrawal. This is particularly true if it was not fully taxable n the first place. This means the cost basis would be minus the amount that is non-taxable by the government.

It is a good idea to look at the fine print of any life insurance offer to see what the conditions are when it comes to your cost basis. You need to look to see how much of your money will not be taxed upon withdrawal.

Another valuable thing to know is that most insurance companies insist that any withdrawal that you make from your annuity must come from what you have earned first. After that any amounts that exceed your cost basis will be taxed as ordinary income is and if you are under the age of 50 years, an additional ten percent in federal tax will also be slapped upon your withdrawal.)

Tiffany Walker has finally revealed her annuity secrets online. Read the latest by clicking here: Fixed Annuity Choices.

Fixed Annuity Choices - Significant Considerations

2008-01-30T22:27:00.001-08:00

When it comes to fixed annuity choices you have two basic types to select from - the immediate annuity and the deferred annuity.

If you opt to enroll in a plan that offers an immediate annuity, you will receive a check from the company anytime within twelve months of signing on the dotted line. An immediate annuity also offers you the choice of receiving the check every year for a specific pre-determined number of years or whether you just want to keep receiving the checks every year for the duration of your entire lifetime. In the latter case the insurance company will figure out how much each payment will be based on how much insurance you bought in the first place and the length of your projected life expectancy.

A deferred annuity is a little more complicated. It is a two-step type plan. During the first phase of the plan, known as the accumulation plan, your money is invested and allowed to grow in bulk. Taxes on this investment are deferred until you should choose to withdraw the money out, either as a series of payments or as one lump sum. The second phase of the plan is this payout phase

When it comes to fixed annuity choices many people opt for the deferred annuity because it offers more control over your money -especially over the dates when you can withdraw the money. The benefit of this is that you decide when to pay the taxes on income incurred from your fixed annuity.

When assessing your fixed annuity choices it is probably a good idea to assess whether or not you are going to need to withdraw the money before retirement. If you think you will need money before you retire then the deferred annuity is a better choice as it offers more flexibility in both what amounts you can take out and when you can withdraw the funds.

Tiffany Walker has finally revealed her annuity secrets online. Read the latest by clicking here: Fixed Annuity Choices.

Compare A Fixed Annuity Rate The Easy Way

2008-01-30T22:26:00.001-08:00

The best way to compare a fixed annuity rate is to get on the Internet and visit one of the many brokerage style sites that have collected information about the various deals that are available from different life insurance companies. Simply type ?compare fixed annuity rate? in a popular search engine such as MSN or Google and hundreds of online comparison charts and product comparison sheets will turn up in the search engine result pages.

Some insurance company sites also just have a page titled compare fixed annuity rate. Within these pages is where you can find exactly the type of insurance that you are looking for.

Another great thing about these insurance companies is that they are usually very insurance friendly when it comes to online customer support. If they don't actually provide an online chat forum then many of them offer to answer your questions directly by email. Also unlike most web sites that are run by big faceless banking corporations you can find the telephone number of a live person to speak to as an insurance company can hardly wait to have you deal with one of their customer representatives in person.

Surprising the insurance companies are very user friendly as well as quite friendly to their competition. One trend lately among insurance companies who offer a page titled something like ?compare fixed annuity rate? is to include the names and amounts offered by their competitors even if they are a better deal then what is offered! Supposedly this willingness to pass the hat to their competitors is based on the idea if that you think that they are honest enough to do that then the insurance company will be completely honest in all of their dealings with you. However it is not necessarily the best idea to fall for this when comparing fixed insurance rates - always go for the deal that is best for you.

Tiffany Walker has finally revealed her annuity secrets online. Read the latest by clicking here: Compare Fixed Annuity Rate.

Best Fixed Annuity Coverage - How To Find It

2008-01-28T22:32:00.002-08:00

To get the best fixed rate annuity coverage you definitely need to shop around to find a good deal. The easiest way to do this is to get on the Internet and start comparing insurance rates. There are hundreds of sites on the World Wide Web that specialize in offering charts and product sheets so that you can compare different offers side by side. These types of insurance comparison web sites that make it quick and easy for anyone to compare different offers and interest rates, even if you have never taken out insurance or a pension before.

The reason that most people end up paying too much for their fixed annuity plans is that they don't bother to shop around for the best annuity coverage. It is such a tedious job that sometimes they just take the first deal that they run across.

This is just not the way to go about shopping for the best fixed annuity coverage. You should at least go to the same type of time and trouble that you would to shop around to find the best credit cars, mortgage or car insurance. You should also do this in a short amount of time as it is inevitable that the insurance company will eventually ask for your social insurance number. This of course is used to check your credit rating, which can also have an impact on the rate of interest that you are offered.

Another thing to look at, besides price is just exactly what the plan actually covers. Just because it is cheap does not mean it is the best fixed annuity coverage for you. Finding the ideal plan can mean taking many other things into consideration besides price including fees, the price of withdrawal penalties and the structure of the plan. Most of this information can be found in the fine print of your agreement with the company, which of course you should ask to see and read thoroughly before signing on the dotted line.

Tiffany Walker has finally revealed her annuity secrets online. Read the latest by clicking here: Best fixed annuity coverage.

Online Annuity Calculator - Do You Need One?

2008-01-28T22:32:00.001-08:00

One popular perk that many insurance companies and insurance brokers are offering nowadays is an online annuity calculator. To find one of these all you have to do is type the words ?online annuity calculator? into a popular search engine like Google or Yahoo and you will be presented with scores of insurance companies urging you to try out the latest calculating gadget on their web site.

Of course you don't necessarily need an online calculator to figure this out. You can use your very own non-virtual calculator or a pencil and a piece of paper to figure it out as after all it only means crunching a few numbers. However if you decide to calculate your annuity payments this way be sure to have an eraser handy as well. This is because you will find yourself constantly changing the amounts that you are calculating depending on the terms of the insurance, what kind of insurance it is and whether it is an investment with a fixed or variable interest rate. An online annuity calculator makes this process much easier. Many of the easy to use online calculation programs offered by insurance company and insurance brokerage sites also allow you to save your results so you can vary your input without too much fuss or concern.

The best online annuity calculator is usually to be found on sites that also allow you to compare one offer to another. On many of these sites you can compare over three hundred fixed annuities. Some sites also have calculators to help you compare the kind of income you could get from equity indexed annuities, variable rate annuities and CD-type annuities.

The great thing about using an online annuity calculator is that it can help you determine exactly how this type of secure, tax delayed investment can help ease you into a comfortable future as a senior citizen.

Tiffany Walker has finally revealed her annuity secrets online. Read the latest by clicking here: Fixed Annuity Quotes.

Fixed Annuity Company - The Concept

2008-01-27T23:03:00.000-08:00

The elders of the Presbyterian Church first brought the concept of a fixed annuity company to light in the mid seventeenth century. The idea was to provide a yearly pension for widows and the elderly members of the clergy. The concept of the fixed annuity company hasn't changed much in the present day. Perhaps the only difference is the tax deferment that is characteristic of most modern annuities.

The idea behind an annuity is that they allow you to invest in a tax-free fund for a number of years until you are ready to withdraw money. Once you withdraw from the fund you would be taxed on it as you would regular income. In the financial world the process of providing you with a check that you cash every year from your saved taxed deferred funds is called annuitization.

Every fixed annuity company today will also offer you the guaranteed income for life option. You can also opt to be paid the annuity for a certain specified period of years which of course if very handy if you ever suffer an illness or disability.

There is not really such a thing as a fixed annuity company. If you went through the Yellow Pages you probably would not find such an entity. Most of the time it is an insurance company offering you the fixed annuity. Annuities are also sold through licensed insurance brokers and agents. Using a broker to find an annuity deal is a good idea as it allows you to compare various interest rates offered by different insurance companies.

The reason that it is a good idea to invest in products offered by a fixed annuity company is that if it ever goes out of business that the other insurance companies in the state where the defunct insurance company is are obligated by law to honor the conditions of your annuity.

Tiffany Walker has finally revealed her annuity secrets online. Read the latest by clicking here: Fixed Annuity Company.

Private Annuity Trusts - Supercharge Your Retirement

2008-01-23T23:15:00.000-08:00

You have made some great investments in Real Estate or in a Stock Portfolio. Congratulations! Now you are ready to retire on your gains. But wait. To benefit from your investment appreciation, you're going to have to sell some or all of those assets.

If you sell your investment property, you will need to pay capital gains tax to the Federal Government, State, and you will also pay recaptured depreciation. If you're in California, add another 3 1/3% in withholding. That's a huge chunk of change, and a big blow to your savings.

If you sell your stocks, you'll be giving up at least 15% to capital gains. There is also no guarantee that the long term capital gains rate will remain at 15% forever. It could increase down the road.

How can you start receiving income but not get hit with huge amounts of tax?

For real property, there is a 1031 exchange into a tenant in common property. This works well for investors that don't want to manage property anymore, but still enjoy the benefits of real estate ownership. This is a subject covered in many of my previous articles.

There is another powerful concept. It's called a Private Annuity Trust. These trusts have been around since 1939, but until the last few years have primarily been used for Estate Planning purposes. The Private Annuity Trust also works extremely well for Retirement Planning. It is fairly complex to set up and administrate, so many financial planners, real estate brokers, CPAs and Attorneys still don't know much about them.

The procedure is basically this.

1. A Private Annuity Trust is established. You, the seller become the annuitant.

2. A fair market appraisal is done to determine property value.

3. The seller can negotiate a sale price at the appraised value.

4. The property is transferred to the trust and the trust is now the seller of the property and retains the proceeds.

5. The proceeds are invested by trustees (not the annuitant) and an arrangement is made to pay the annuitant (and perhaps their spouse) in monthly payments for the remainder of their lives. The capital gains tax is spread out over the course of your lifetime. If you pass away before your estimated average calculated life span, the remainder of the assets pass to the beneficiaries. The balance will be passed free of Estate Tax, Gift Tax, Generation skipping tax, and Transfer tax. Any capital gains tax still due will be paid before disbursement.

6. Other properties or stocks can be added to the trust at a later time, and recieve the same benefits.

As an example, let's say you have a million dollar gain on a property. You might very well owe 350K in taxes. With a Private Annuity Trust, all one million goes to work for you, and you can receive montyly income for the rest of your life. The exact amount is determined by your age and the time you choose to begin receiving your payments. You have the option to defer receiving payments until the age of 70 1/2. This allows the assets to grow compounding and tax deferred, and allows for greater income in the future.

The trust removes the assets from your estate, as the trust now owns them and the annuitant relinquishes control over how they are invested.

Setting up a Private Annuity Trust can definitely give a turbo boost to your retirement bottom line. Ask yourself, would you rather give a "gift" to the government in a big lump sum, or would you like to pay in small chunks and have the bulk of your profits working for you and earning compounded interest for years to come?

Paula Straub will guide you through the process of keeping your Capital Gains working for you and generating passive income. To receive your invitation to her free teleconference, visit Save Capital Gains Tax

Annuity Leads

2008-01-22T23:09:00.000-08:00

It is a challenging job to generate your own annuity leads. If each of its steps is not done properly, you will be throwing your cash in the garbage. It is not very easy to find good annuity leads.

After retirement, most people invest their financial retirement benefits in insurance firms, on the provision that their money is repaid to them on a regular basis. More clearly, the investors buy annuity (the above agreement) from the insurers. With this arrangement, the investors are assured of a regular income through retirement, or thereafter to their successors.

But in some situations such as buying a home, the annuity payments that the investors receive may not be sufficient. At such times, the investors can withdraw a prescribed amount by paying a surcharge to the insurance company. But, this is often found to be uneconomical. To overcome this difficulty, the US government introduced certain provisions by which the retired person can sell his annuity to an approved financial institute that pays a lump sum amount to the person.

Selling of these annuities involves several steps. At first, the retiree goes to a finance organization, fills out a 'request form' called 'annuity lead', and submits the form to the organization. Many people seek the assistance of a broker or an annuity lead provider to generate the annuity leads. It is important to make sure that lead providing company, the broker, and financing institute are certified.

Annuity leads are considered as the most important documents in a money transfer. They contain information such as date of request, private information (like name, address, city, phone and email address), initial investment, source of funds, payment timeframe (usually in number of years), and rate of return. The leads also include the lead reference number, and the date and time of lead generation.

There are some basic precautions to follow while considering annuity lead services. First, a company should never purchase more than they can well afford. It is also important to check whether the lead service is guaranteed or not.

Annuity Buyer provides detailed information on Structured Settlement Annuity Buyer, Annuity Buyer, Annuity Buyer Payments, Annuity Buyer Guides and more. Annuity Buyer is affiliated with Condos For Sale.

Annuity Investment for Retirement

2008-01-20T22:47:00.000-08:00

Annuity is an insurance product that can guarantee to receive amount of money regularly as result of investment until the end of annuity contract. Why should you consider annuity investment for your retirement?

Annuity as an insurance product offers insurance benefits such as death benefit, and protection of your investment to beneficiary. While annuity as an investment offers investment benefits such as income protection for life, relatively higher interest rate than CD or any bank investments, and tax deferred benefit.

Insurance companies use your annuity investment to invest in bonds and stock market depends on annuity product you choose. According to its interest rate, annuity can be categorized into fixed annuity and variable annuity.

Fixed annuity is an annuity that can guarantee a minimum annuity payment regularly no matter what happens. While fixed annuity most enemy is inflation, there is fixed annuity variant that may protect your investment against inflation. Instead offers a fixed interest rate, equity indexed annuity set earns to an equity index such as Standard & Poor?s 500 Composite Stock Price Index (the S&P 500).

Variable annuity is the most complex annuity type. Variable annuity only sold by prospectuses, your investment is not guarantee by any party and its value may increase and decrease depends on performance of your investment option.

Many financial experts advice not buy annuity until you have maximize all your other retirement saving such as 401(k) plan and IRA. However, there is an option to use annuity investment as your IRA investment. The advantage of this option is higher interest rate over other kind of investments such as CD. While consequence is there is no additional tax deferral benefit, because IRA is already tax deferred.

Don?t forget to consider about tax, many people want to change to lower tax bracket during their retirement. Well, the decision will vary based on your expectation of retirement lifestyle.

As conclusion, choose well-known insurance company over higher interest rate promise. Request a prospectus, read it, understand it features and benefits as well as fees and charges. Annuity is a complex product, you should contact financial advisor to identify which annuity product or annuity type suit for you. The past do not equal the future rule apply in annuity investment as well as in life.

Allya Reeve is independent writer who run Annuity Reveal website to help most of people who seek out quality yet concise information about buy annuity and sell annuity.

For more information about annuity investment and retirement visit Annuity Investment for Retirement page.

Structured Settlement Annuity Buyer

2008-01-18T22:24:00.001-08:00

Annuities are one of the most important and inevitable and lucrative policies for the well being of the senior citizens of America. However, at some crossroads of life one might need to have their future to be planned in a proper way, especially during and after the retirement phase. The best time to buy an annuity is age 55 or older. An annuity is the ideal life planning tool for a senior citizen that comes up to him or her with all the advantages near the end of his life.

A structured settlement annuity is a particular kind of an annuity plan that has its own advantages and disadvantages. A structured settlement means ?by the obligation of a payment that is deferred?. This type of annuity results from the settlement of a personal injury lawsuit. Usually a structured settlement annuity buyer has to make his or her payments over a considerable time or over a period of several years. This kind of annuity plan varies from personal injury accidents and such other mishaps to product liability. It is the fundamental right for a citizen to receive the amount of compensation that he or she deserves if he or she is hurt for some other person. Therefore various insurance companies and agencies buy annuity plans. This plan would be valuable enough to pay a combination of principal and interest over a long period of time. This payment is even possible on the conditions of restrictions regarding the schedule of disbursement.

There are a number of structured settlement companies, however, that offer a number of flexible, individually tailored plans. This is a great leap for those who are structured settlement recipients in receiving a considerable amount of money for their future payments. In one word, a structured settlement helps one to meet today?s needs, turning the future and distant payments into the money one needs today.

Annuity Buyer

2008-01-18T22:23:00.000-08:00

Annuities are one of the most important and inevitable and lucrative policies for the well being of the senior citizens of America. However, at some crossroads of life one might need to have their future to be planned in a proper way, especially during and after the retirement phase. A senior citizen, or any citizen of age sixty-five and above, has the full right to utilize his or her insurances, life insurances, liquid assets, pension schemes, financial plans and such other things - including retirement plans. But proper planning is key to the secured future. An annuity is the ideal plan for such phases of life.

The best time to buy an annuity is age 55 or older. An annuity is the ideal life planning tool for a senior citizen that comes up to him or her with all the advantages near the end of his life. It is a retirement planning tool and has two basic phases:

(a) The accumulation phase and

(b) The annuitization phase.

In an accumulation phase, a person invests money in an insurance company, a senior settlement plan or an investment company for a considerable period of time. The amount might vary from one investment company to the other, but it is invested in a lump sum. Eventually with the passage of time it earns a rate of return.

However, in the other phase, namely annuitization phase, the person who had been investing money in the accumulation phase has the right to withdraw payments on a regular basis, whether it is in a monthly or annual basis. The person who buys such an annuity plan to secure their post-retirement phase is called the annuity buyer. This annuity buyer has to pay what are called basis points. These are basically the fees for the annuities. The annuity fees or the basis points show a percentage of one?s investment.

Annuity Buyer Guides

2008-01-17T22:42:00.001-08:00

Annuities are one of the most important and inevitable and lucrative policies for the well being of the senior citizens of America. However, at some crossroads of life one might need to have their future to be planned in a proper way, especially during and after the retirement phase. A senior citizen, anyone of age sixty-five and above, has the full right to utilize his or her insurances, life insurances, liquid assets, pension schemes, financial plans and such other things including the retirement plans. Proper planning is key to the secured future. An annuity is the ideal plan for such phases of life.

The best age to buy an annuity is 55 or older. An annuity is the ideal life planning tool for a senior citizen that comes up to him or her with all the advantages near the end of his life. The person who buys such an annuity plan to secure their post-retirement phase is called the annuity buyer. This annuity buyer has to pay what are called basis points. These are basically the fees for the annuities. The annuity fees or the basis points show a percentage of one?s investment. But one has to be very careful before committing him or herself in buying such annuities. There are a lot of guides on the issue that sometimes prove to be of great use to those who are thinking of buying such annuities. There are books available in the market and there are a lot of online resources as well to guide you through the dos, don?ts and other aspects of annuities.

An example would clear out the importance of annuity buyer guides. All the basic lucrative returns of an annuity is already known to us, but one should pay attention to the fact that one can't withdraw the money until one is 59? or one is hit with a 10% penalty. There a lot of other such little things about which one should have a prior knowledge. This is where the annuity buyer guides come in useful.

Annuity Buyer Payments

2008-01-17T22:41:00.000-08:00

An annuity is the ideal life planning tool for a senior citizen that comes up to him or her with all the advantages near the end of his life. It is a retirement planning tool and has two basic phases:

The accumulation phase and

(d) The annuitization phase.

It is during the accumulation phase that an annuity buyer has to make the payments. In an accumulation phase, a person invests money in an insurance company, a senior settlement plan or an investment company for a considerable period of time. The amount might vary from one investment company to the other, but it is invested in a lump sum. Eventually with the passage of time it earns a rate of return.

In the other phase, the annuitization phase, the person who had been investing money in the accumulation phase has the right to withdraw payments in a regular basis, whether it is in a monthly or annual basis. The person who buys such an annuity plan to secure their post-retirement phase is called the annuity buyer. This annuity buyer has to pay what are called basis points. These are basically the fees for the annuities. The annuity fees or the basis points show a percentage of one?s investment. Another important thing regarding the annuity buyer?s payments is the Mortality and expense (M&E).

Mortality and expense are those which are charged by the various insurance companies and agencies in order to provide an annuity buyer with a lifetime income. This fee is also charged to the beneficiaries with a death benefit of the annuity buyer.

There are three types of annuities that require three types of payment modes. They are:

(a) Fixed annuity, which incorporates the ""mortality and expense"" (or M&E) fee, the sub account fee, and the annual contract maintenance charge. The sub account fee covers the cost of one?s annuity investment account management. However, the annual fee is quite flatly charged and is on an average $30.

(b) Variable annuity

There are no up-front fees or charges for the latter two categories.

What Is A Split Annuity?

2008-01-17T00:33:00.000-08:00

The Split Annuity is a combination of an immediate annuity and a deferred annuity, structured to provide immediate income, much of which is after tax dollars (return of premium), while returning the original premium (before taxes).

The income is guaranteed for the length of the contract, while the deferred dollars grow at current, tax-deferred interest rates.

A single premium is used to fund the Split Annuity. Annuity Companies issue two contracts, one for the guaranteed income and one for tax deferred growth.

The Split Annuity offers a guaranteed monthly income.

The Split Annuity features competitive interest rates, tax-deferred growth and partial withdrawal options.

The Split Annuity is flexible. A new income stream may be developed from the deferred annuity proceeds at a later date. The deferred annuity also allows for additional partial withdrawals, plus the continued tax-deferred growth eventually ?replaces? the immediate annuity premium.

What is a Tax-Deferred Annuity? A tax-deferred annuity is a contract between you and the insurance company with guaranteed interest and guaranteed annuity income options. There are no upfront sales charges or administrative fees during the life of your contract.

Advantages of Tax-Deferred Annuities include tax deferral, stability, may avoid probate, liquidity features, and guaranteed income.

One of the primary advantages of deferred annuities is the opportunity to accumulate a substantial sum of money by allowing your premium and interest to grow tax-deferred. Unlike taxable investments, you pay no taxes on your annuity interest until you begin to take withdrawals or receive income. This allows your money to grow faster than in a taxable account, because you earn interest on the money that would have otherwise been paid in taxes.

http://HappyRetiree.com/

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Jeff McLeod is a fixed index-linked retirement income annuity specialist. To get a copy of the Buyer?s Guide visit http://happyretiree.com/

Sell Annuity Settlement

2008-01-11T22:03:00.001-08:00

A structured settlement is a monetary grant that is often the result of a successful lawsuit. Often the lawsuit is in reference to an injury case, which results in an insurance agreement. This payment is financially planned to guard the settlement sum and to offer the beneficiary with safe returns. Often the receiver is incapable of work, restricted in work capacity or has endured loss in earnings due to work absence as a result of injury. The structured settlement, also known as an annuity settlement, offers the receiver a long-term, steady and tax-free income.

An annuity settlement or a structured settlement uses annuities as a mode of compensation. However they have a basic difference. A regular annuity is a result of an investment or retirement option, whereas a settlement is a result of an injury or insurance settlement.

To ensure an annuity settlement payment remains tax-free and protected for its tenure, a beneficiary cannot ask for payment augmentation or payment advances. At times this is a predicament incase the receiver needs quick cash or a large sum of money. In such scenarios one may search for an annuity buyer.

Through an annuity buyer, one can sell settlement payments for money. The process allows a person to get the cash that is needed at a time, while the buyer takes over ones annuities and collects the payments as prearranged.

If one has an annuity settlement, it is beneficial as it provides a continuing and steady income in case of accident related disability. Nevertheless, need for money may arise at any time. Hence, in situations like this it is advisable to sell annuity settlement at a bargained price to be able to use the money to its full potential.

Sell Annuity provides detailed information on Sell Annuity, Sell Annuity Payment, Sell Annuity Settlement, Sell Health Annuity and more. Sell Annuity is affiliated with Annuity Leads.

Structured Settlement Annuity: The Real Deal

2008-01-11T22:02:00.001-08:00

Structured Settlement Annuities have been shown to provide a valuable, safe and guaranteed source of lifetime income to parties in personal injury or other cases. Today we look at situations where these special annuities would be helpful.

Personal injury.
This is obvious to most, but let's take a closer look at situations that might warrant such settlements.

Temporary or permanent disability.
A structured settlement can help here by making sure the cost, if any, of rehabilitation is covered.

Guardianship of minors or persons with diminished mental capacity.
We've seen before how dangerous mismanagement of a lump sum settlement for a child can seriously impact the future care of the child. Guaranteeing that care for the injured child will be covered will add greatly to the overall quality of life for the caretaker and the child.

Wrongful death, particularly when the surviving spouse and / or children need steady income.
When tragedy strikes the main money earner of a household loss to a family is felt in many ways. In some cases this can cause financial ruin to a family. A structured settlement can help replace the monthly income lost and provide a family piece of mind that the rent, bills etc will be paid for.

Severe injuries, especially those that result in shortened life expectancy.
Once again, protecting the financial future of the family or caregivers to make sure that specialized care is covered and monthly expenses are paid.

Cases where future needs can be determined today.
This is a bit more risky as it can be difficult to predict expenses in the future. However, certain costs may be fixed or are more easily anticipated like mortgages, tuition, and monthly bills.

If someone finds themselves in any of these situations, it's important to take these factors into consideration:

1-Significant, ongoing medical expenses
2-Rehabilitation or permanent care facility expenses
3-College tuition, retirement income, the down payment on a home or a mortgage payment
4-Replacement of monthly income, annual income or supplemental income

Though some of these may seem too far in the future to think about, ignoring these will cause more hardship than necessary.

Michael DeGeorge has done extensive research on structured settlements and shares a wealth of information on his website http://structsettle.gitgoingnow.com. Download your free Structured Settlement Annuity information today from http://structsettle.gitgoingnow.com.

A Structured Settlement Annuity: Comparatively Speaking

2008-01-10T00:25:00.001-08:00

In earlier articles, we've seen the benefits of structured settlement annuities over lump sum payments. For some, this protects them from the temptation of spending the bulk of their payment on unsound or unwise investments. Protection and incoming cash flow over the long haul are what structured settlement annuities provide. However, not every person faced with a lump sum payment necessarily will be tempted to spend the money rashly. Obviously, there are people who are savvy investors and think that given the opportunity with a lump sum payment over a structured settlement annuity, they will be able to make more money investing on their own.

With that in mind, let's take a look how a structured settlement annuity compares with one of the most popular investment vehicles, the equity income mutual fund.

First, let's look at who issues the annuity and the mutual fund. A structured settlement annuity is issued by a life insurance company. An equity mutual fund is issued by and investment company that pools the assets of multiple investors in equity securities.

Next, let's look at the long term capabilities of each to provide a lifetime income. An annuity payment plan is created up front and is a predictable and dependable source of income that can not be outlived. A mutual fund can be a high paying investment. However it can also be highly volatile and unpredictable based on market conditions and can actually lose money and stop your earnings if the fund performs poorly.

What about guaranteeing the payouts?
An annuity is guaranteed by the issuer of the annuity based on the terms of the structured settlement. A mutual fund is solely dependent on market activity and thus can not be guaranteed.

What about costs?
The annuity has no cost associated with it. A mutual fund can be subject to a number of fees, like a sales load, yearly management fee, and marketing expenses. Even the lowest cost index funds have some costs associated with them.

What about keeping up with inflation?
A structured settlement annuity can have a cost of living adjustment incorporated into the annuity at the time it is designed. An equity mutual fund can outperform inflation based on how the underlying securities perform. However it is difficult to predict what the return will be and remember "past performance is not and indicator of future results."

But what about the dreaded T-word....Taxes??
A structured settlement annuity is tax free as long as the money received is the result of personal physical injury or physical illness. As income is earned from an equity mutual fund taxes, capital gains, income etc, must be paid.

What about flexibility?
A structured settlement annuity payment amount and schedule may not be altered at any time. Conversely, money can be moved in and out of mutual funds. However, taxes, sales loads etc may be applicable with each transaction.

Fixed Indexed Annuity: Bank CD Alternative

2008-01-10T00:24:00.000-08:00

A fixed indexed annuity (FIA) is the product of choice for top selling annuity agents who are tired of seeing their clients lose money in low interest rate CDs. A fixed indexed annuity is a hybrid fixed product that is fast becoming the new "safe home" for billions of former CD, stock market and mutual fund dollars. And with good reason.

HOW IT WORKS

A FIA provides a safety net of usually 1-3% interest compounded annually. But this is just the minimum guarantee through the contract term. The upside earning potential is much higher. As the name implies, the fixed indexed annuity is tied to an equity index such as the Standard & Poor's 500. The S&P 500 is the benchmark for U.S. equity markets, representing the general health of the overall stock market. As the market goes up your client's earnings go up because they participate in a percentage of the increase. But (and this very important) when the stock market comes back down again as it always does, your clients don't lose any money.

WHAT WAS THAT AGAIN?

This bears repeating. When the stock market goes up, earnings go up with it subject to a cap. But when the market comes back down again as it always does, the policy does not lose any money. Earnings are locked in at each annual anniversary index point. FIA owners earn 2 or 3 times the guaranteed interest rate when the stock market goes up, and when the stock market comes back down again they get to keep all profits. Upside earnings without the downside risk. How cool is that?

TAX DEFERRED GROWTH

What's more, your client's earnings grow tax deferred as long as they stay in the annuity. This means they earn even more money on the portion they don't have to send Uncle Sam. Unlike a CD, there is no Form 1099 to add to income tax returns each year. Why pay taxes on income you don't spend? Seniors citizens are especially fond of Fixed Indexed Annuities since deferred interest is not counted as provisional income and can reduce or eliminate taxation of Social Security benefits. FIAs are also becoming the favorite funding vehicle in small business retirement plans like the 401(k) and SEP-IRA.

WHAT TO DO?

Whether you sell to retirees or future retirees, you owe it to yourself to learn why millions of people are moving billions (actually, trillions) of dollars into fixed indexed annuities. They're the sensible alternative that can make you very large commissions.

http://www.Free-Insurance-Leads.com Gary Le Mon is a wholesale distributor of fixed indexed annuities for Allianz, American Equity, Sun Life Financial, and ING. See also Insurance-Lead-Programs.com

Annuity Rates

2008-01-07T22:30:00.002-08:00

Annuities are the series of payments made by an institution like an insurance company to the annuitant (annuity holder) over a fixed time period. The payments are fixed by the company. Annuity rates are the rates of return that the annuitant will. Rates will depend on the nature of the annuity.

In the case of fixed deferred annuities, the rate of return is guaranteed over the life of the insurance contract. On the other hand, variable deferred annuities will not give any guaranteed return on the annuity. This is because; the amount obtained by the insurance companies from fixed annuities is invested in low risk government securities and bonds that guarantee some income. But the amount from the variable annuities will be invested in high-risk securities. However, the main advantage of variable annuities is that the excess income above the premiums from these annuities is exempted from tax. The two important factors that affect the annuity rates are gilt yields and life expectancy. In most of the countries, annuity rates have been on the decline. Sometimes the annuity rates depend on the market conditions and the monetary policy of the Government.

Every annuity holder wishes to have higher rate of return on the annuity. In order to achieve higher annuity rates of return, one needs to shop around for a good insurance company. Moreover, the potential holders need to have an idea of what types of securities the company invests in. If the investments perform well, then the likelihood of enjoying higher returns is possible. Potential holders may seek professional advice from annuity brokers or agents.

Cash For Annuities Web provides detailed information on cash for annuities, annuity brokers, annuity buyers, annuity payments and more. Cash For Annuities Web is affiliated with Cash Out Refinancing Scams.

Life Insurance Settlement Finds Hidden Cash For Annuity Purchase

2008-01-07T22:30:00.001-08:00

A life insurance settlement may hold the hidden source of cash to fund your next fixed indexed annuity sale. Every agent on the planet who is actively selling annuities has heard the objection from a prospect, "I love your concept, but all my money is tied up." Of course, your comeback is to motivate Mr. & Mrs. Prospect to move at least some of their funds into the safety of an FIA. But if and when you find yourself out of bullets, please do not part company without taking a final shot with something like, "One last thought before I go. We sometimes find that retirees may have an old life insurance policy they're still paying on, or that may even be paid up. Oftentimes the reason for taking it out so long ago has changed because life circumstances change over the years. I have a way to 'repurpose' this kind of dormant asset for usually more than its cash value, and apply the money toward your retirement needs today..."

Eureka! Suddenly your dying sales interview springs back to life with the prospect of using the settlement on a life insurance policy as found money.

Actually, before life insurance settlements (also known as viatical life settlements), there were two options when a senior had a life insurance policy that was no longer needed. He or she could either let the life insurance policy lapse or cash it in for its surrender value.

Now seniors have an excellent opportunity to capitalize on their current life insurance policy using a life settlement solution. Such life insurance settlements allow seniors to cash in their insurance, but in a new way. Instead of cashing in their policy with the issuing life insurance company, they can work with a bonded life settlement broker to cash in their policy with a financial institution that will pay more.

Simply put, the transaction is a buy-and-sell exchange between a policy owner and an investor, facilitated by a bonded life settlement company or broker. The policy owner deals directly with the broker who negotiates on his or her behalf. There is no fee to the seller. The broker's job is to package and present the deal for competitive bidding. Financial institutions bid for the best portfolio investments. Once limited to the terminally ill, senior life insurance settlements have evolved into a unique opportunity for today's mature market. And it works for individuals, businesses and charities.

Dollar amounts are based on the death benefit, not the cash value. Ideal life settlements are a percentage of the net face value (death benefit minus outstanding loans and accrued interest) and are always greater than any cash surrender value. For example, one recent case involved a 74 year old male with a $420,000 term life policy, no cash value. The life insurance settlement broker converted the policy to whole life. The purchasing investor took over premium payments. The happy client tucked a tidy $68,000 into his equity index annuity. And the agent socked away $12,600 commission on the life insurance settlement (3% of the policy death benefit) plus $6,120 commission on the FIA. Not a bad day's pay.

When your prospects need a little prompting on the reasons for using a life insurance settlement to fund an equity indexed annuity, suggest the following:

* Beneficiary is deceased and coverage is no longer needed, or beneficiary is financially well off and no longer in need of death benefit for survival

* Premiums are no longer affordable

* Estate size has changed and policy coverage amount is too large for estimated estate taxes * People are living longer. Retirement income needed over longer period

* Better quality of life with greater cash flow

In its simplest form, your clients can receive more money in the secondary market than from their life insurance company. They avoid paying surrender charges from the insurance company and no longer need to make premium payments.

All of this may sound simple, but resources, time, and experience are essential. A bonded life insurance settlement company should have all the tools to make sure that your client's settlement is completed properly and efficiently. While InsuranStar.com neither endorses nor recommends any life settlement solution or senior life insurance settlement broker, as an annuity producer and Wholesale Distributor I've worked with one bonded life settlement broker whom I can recommend with confidence. Please feel free to contact me for a trustworthy reference.

Buy Annuity Leads

2008-01-04T22:33:00.000-08:00

The financial products such as annuity are created keeping in mind the expectations of certain type of prospective customers. The age of the prospect comes in this type. So are his/her income group and the type of profession they are engaged in. Needless to say that, in order to sell its investment products, the financial companies have to reach out to the targeted customers first. Hence the agents of the financial companies are generally on the look out for the database of such customers. This information is sensitively profiled by specialized research firms and is offered as leads to agents and financial companies needing this database. These leads are generated from various sources which include websites that are developed to monitor genuine customers who are surfing the Internet for buying annuity.

While leads are very important for selling annuity, however certain factors should be taken into consideration while buying them. It?s crucial to know, how the research company operates and by using which methods the leads are being generated by the research company. Instead of buying the leads from the first authentic company one comes across, it pays to search for more companies in order to get optimum benefits. The cost of acquiring the leads is also significant. The terms of payment should be clearly discussed before entering into a payment contract. There are some companies that raise monthly bills for providing leads. It must also be ascertained whether the leads are sold only to one agent/ company. For better results while playing safe, the leads should be bought in small amounts from various firms. This way, the quality of the leads and the firm providing these databases can be safely assessed without incurring much cost - a good deed indeed for good leads!
Buy Annuity provides detailed information on Buy Annuity, Buy Annuity Leads, Buy Fixed Annuity, Buy Retirement Annuity and more. Buy Annuity is affliated with Fixed Annuities.

Compare An Annuity Rate - Foolproof Method

2008-01-02T22:15:00.000-08:00

You should never buy insurance without first taking the trouble to compare annuity rate offers from several different companies. This will definitely prevent you from running the risk of accidentally buying high-cost insurance.

Millions of people needlessly pay unnecessarily high interest rates because they were too lazy to try to compare annuity rate offers. For instance many people don't realize that a variable annuity actually has higher fees and sometimes-higher interest rates then a fixed rate annuity.

Just to remind you of the differences between types of annuities, a fixed annuity pays you a guaranteed rate of interest and a variable annuity helps you invest in a portfolio of mutual fund type accounts. There is also a third type of annuity called an equity-indexed annuity. It is like a mating of the two types and offers a minimum rate of interest as well as the opportunity to invest your money in a portfolio as well. Equity indexed annuities are the hardest plans to compare simply because they are complex and marketed as being risk-free when in fact the opposite is often true!

Another unfortunate yet common consequence of neglecting to compare annuity rate offers is settling for the first deal that comes your way. Many people do this just to get the whole tedious job of comparing annuity rate offers over with. This could be a big mistake, especially if you don't read the fine print. For one thing you might end up paying really high fees should you decide to withdraw your money one day.

Another problem is that you are often stuck in the deal that you chose in the first place as there could be very high penalties for withdrawing your money early. This makes it almost impossible to get ahead financially even if you did have a better annuity rate offered from another company.

Tiffany Walker has finally revealed her annuity secrets online. Read the latest by clicking here: Buyer of structured annuity settlement.

Fixed Annuity Quotes

2007-12-30T21:38:00.000-08:00

People are of two minds about where is the best place to get fixed annuity quotes. Some would say that the best place to get fixed annuity quotes is at the place where you actually intend to buy the insurance as you get all of the information that you need to know "direct from the horse's mouth" as they say. The quotes are direct and would accurately reflect what the institution or insurance company has to offer you as a deal on that day.

Others say that the best way to go about getting fixed annuity quotes is to get them from a broker or look them up on one of the many sites on the World Wide Web that will allow you to compare fixed annuity quotes in nicely designed, easy to read charts. There are absolutely scores of sites on the Internet run by insurance brokers that specialize in comparing fixed annuity quotes specifically so don't be afraid to take advantage of your search engine box to find the rates that are best for you.

The reason that getting them from a broker or a brokerage site is a good idea is that you will get a larger selection or idea of what is actually out there when it comes to fixed annuity rates and terms and conditions. However the fact is that some web sites or brokers are of course there to represent the best interests of their affiliates. In order to make a decision some of these brokers may slant their reviews or assessments of different plans in favor of what they are selling.

Another thing to look out for when shopping for fixed annuity quotes online are claims that seem too good to be true. Don't trust any broker that asks for your social insurance number, banking account number or credit card number by email. This means that you could be a potential victim of identity theft. To avoid this type of grifting you might also want to consider getting your quotes by phoning a broker or by talking to one in person.

Tiffany Walker has finally revealed her annuity secrets online. Read the latest by clicking here: Fixed Annuity Quotes.

Finding a Buyer of a Structured Annuity Settlement

2007-12-27T22:18:00.000-08:00

If you receive a big insurance settlement (such as a personal injury settlement) or win the lottery then it might be a good idea to find a buyer of structured annuity settlement. An annuity settlement means that even though you have won a big jackpot or been awarded a huge sum of cash that you will only see a small sum of it that is sent to you by check once a year. This is where a buyer of a structured annuity settlement can come in handy especially if you want to take advantage of all of your winnings at once.

A buyer of structured annuity settlement winnings will offer you a big lumps sum payment so that you don't have to wait to be paid over a period of several years or even decades. In a way you could perceive this type of annuity as a kind of cash advance for the winnings you would have received in the future.

Keep in mind that doing a deal with a buyer of a structured annuity settlement is not necessarily that profitable. They in actuality keep the majority of your winnings. For one thing the buyer will be receiving all of the interest on the money as it is collected for many years. You on the other hand may be tempted to splurge all of your winnings or insurance money at once.

Still opting for a structured annuity settlement is a good idea for individuals who need a huge lump sum of cash to take care of immediate physical needs which is often the case with people receiving large insurance settlements as the result of personal injury or medical abuse.

Tiffany Walker has finally revealed her annuity secrets online. Read the latest by clicking here: Buyer of structured annuity settlements.

Private Annuity Trust vs. 1031 Exchange- When a PAT Makes Sense (Part II)

2007-12-25T22:44:00.001-08:00

In the last article, I pointed out when, as a real estate investor, doing a 1031 Exchange on the sale of a Real Estate Property may not be your best option.

So, let's assume you do want or need to sell a real estate investment, don't want to do an exchange, and don't want to pay a huge lump sum capital gains tax payment of 15-40% on your gains. Now is the time to see how a Private Annuity Trust can save you money.

It's important to know that you don't avoid paying your capital gains tax obligation, you just get to defer all payment for a while if you're under 70 years old, or you at least get to spread out the obligation over many years. The total of years can be your lifetime or a fixed number of years determined by you when you set up the trust.

So, how does that help you? Well, if someone were to offer you a 0% interest loan on let's say $300,000.00 for the next 30 years, and you only had to make minimum payments, would you jump at the chance? Most people sure would. Think of how you could invest that 300K so that you could enjoy the benefit of the interest it accrued. This is effectively what a Private Annuity Trust does for you. It allows you to keep most of your gains working to your advantage, while paying back the money owed to the IRS over a long period of time.

This also holds for the depreciation recapture if you owned your property for a long period of time and depreciated it according to a schedule to realize annual tax advantages of owning investment real estate.

If you do not put a tax strategy in place and sell outright, not only do you owe capital gains tax, but you also owe depreciation recapture, which can be another 25-35% of your total depreciation taken over the ownership cycle of your investment.

And, you will avoid the possibility of the dreaded Alternative Minimum Tax trap. This is something else that may catch you by surprise when you least expect it triggered by your outright sale of property. This could mean having other legitimate tax deductions disqualified and a higher tax payment owed by you.

As you can see, it's definitely worth it to consult with an expert in Capital Gains Tax saving strategies before you make the decision to sell your real property.

The PAT can also work with the sale of a second home, vacation home, or even your primary residence. With these assets, a 1031 exchange is not an option.

Paula Straub is a Investment Advisor Representative and Insurance Agent in Southern California. She facilitates Capital Gains Tax Saving Strategies for clients in all 50 States by working closely with Nationally recognized companies. Paula is an educator, author and professional speaker. You can learn more about Paula at her website http://www.Paula-Straub-Capital-Gains-Tax-Site.com or contact her directly at (760)917-0858

Private Annuity Trust vs. 1031 Exchange- When a PAT makes Sense (Part I)

2007-12-21T21:27:00.000-08:00

Real Estate Investors tend to be hard core. There is nothing like having your money invested in property you can touch, visit, renovate and watch gain in appreciation.

You may have heard the term "Swap till you drop". What this term means is that as an investor,you sell your real property and exchange it for another of? equal or greater value, and continue to do this until you die and leave the assets to your heirs. This does (under current tax law) allow you to avoid paying capital gains tax and recaptured depreciation forever. And, your heirs currently inherit it at the value at the date of your death. They do not pay capital gains tax and depreciation, except if they sell it over the value it was at death.

This is a good thing.

However, there is going to be a time to exit the real estate investment phase of your life.? Let me give a few examples of when this might be the case.

1. You have accumulated a number of investment properties and reach a point in life you want less hands-on management responsibilities.

2. You want to slow down a bit during retirement and actually want to use some of the equity you have worked so hard to accumulate to improve your income and lifestyle.

3. The market conditions are ripe to sell, but purchasing another property of equal or greater value doesn't make sense.

4. Economic conditions warrant sale. Perhaps need for long term care for you or a member of your family.

5. Personal circumstances, such as need for additional income, debt payoff, tax consequences, property division, etc. warrant the need to sell.

6. You need to do some estate planning and need to remove some of your assets from your estate so your heirs won't have a huge estate tax obligation.

If any of these prevail, a Private Annuity Trust may be your best option. A PAT will allow you to spread out your capital gains tax burden over many years, and trigger what is effectively a 0% interest? long term loan from the government. How often do you get this kind of opportunity?

Part II will explain more of how a Private Annuity Trust can make a huge difference when any of the above circumstances might arise.

Capital Gains Tax Saving Strategies real estate investors need to hang onto your hard earned profits. Get your free report "Seven Secrets to Help Real Estate Investors Hang onto Their Capital Gains" at http://www.saverealestategains.com

The Variable Annuity versus The Mutual Fund

2007-12-19T22:12:00.000-08:00

Get ready for the battle of the new millennium, the variable annuity versus the mutual fund. Over the past few years, the variable annuity has come under extreme attack, as an investment vehicle for retirement because of its expenses and taxes laws regarding withdraws. Actually, many articles have compared the features of the fixed annuity to a mutual fund, but unfortunately; that is like comparing a wagon to a jet ski. On the other hand, the variable annuity experiences market risk and so does your mutual fund; therefore, this provides us with a fairer comparison.

The variable annuity takes a lot of criticism, since individuals pay ordinary income taxes on withdrawn earnings. Also, the variable annuity is subject to stringent tax rules such as early withdraw penalties before age 59 1/2 with a few exceptions; even if the plan is classified as a non-qualified account. Mutual fund taxes are based on the fund manager's classification of the dividend. If the gain is considered a short-term capital gain in the mutual fund, this amount will also be taxed as ordinary income.

There has been some discussion over the high expenses associated with the variable annuity. Most variable annuity plans average a "mortality and expense" charge of about 1.2% a year and each separate account you choose may add another .8 % to .9% a year plus administrative costs. Mutual funds also have fees. Some funds require you to pay a sales charge when you purchase it, while others require you take a number of years to pay off its sales charge or are considered to be no-load mutual funds. Regardless of the mutual fund you choose, you will have to pay internal fees which may include management and those pesky 12(b)1 fees. The average yearly mutual fund fees generally run .75 to 1.3%, depending on the fund. By now you are wondering why anyone would use a variable annuity for retirement planning? Actually, that is for you to decide not me. F.Y.I., those investment specialist crying about an annuities' surrender charges should never sell B-share mutual funds, because there is not much difference.

The variable annuity has one defensive stand left? Let us say two people invested $20,000 in a variable annuity and the other in XYZ Mutual Fund. Both of these people die before spending a dime of their retirement accounts. At the time of death, each person had the same asset allocation model and $14,000 in their account. Whose beneficiary will get the most money? If your variable annuity has a death benefit that guarantees your original investment minus withdraws, you would have done better with the annuity. However, there are many other scenarios to consider, and the tax rules regarding non-qualified annuities and surrender charges may not allow easy access to your money before age 59 1/2. You decide which is a better retirement investment for you. The most important thing you can do is something, instead of nothing at all.

Disclaimer: The information in this article should be construed to be insurance advice. Always consult a financial or insurance professional or tax accountant to determine what coverage is right for you.

Mr. Jason Cunningham is the lead writer for http://www.financial-shopper-network.com and http://financialshoppernetwork.blogspot.com.

Annuity Payments

2007-12-17T22:16:00.001-08:00

Annuities are a series of payments made by an institution like an insurance company to the annuitant at regular intervals of time over a fixed time period. The payments are fixed and may be on a yearly, semi annual, quarterly or monthly basis. Generally, there are two types of annuity payments called ?ordinary annuities? and ?annuities due?.

Ordinary annuities require payments at the end of every period until the maturity period of the investment. For example, with bonds, usually the seller pays coupon interest payments to the buyer at the end of every six months. However, sometimes annuity payments will be made at the beginning of each period like a rent payment. These are called ?annuity due?. Depending on the frequency of annuity payments, annuities can be divided into deferred annuities and immediate annuities. In immediate annuities, annuity payments are made at much frequenter intervals. Deferred annuities will make the annuity holders receive payments depending on the nature of the annuity. If the deferred annuity is a fixed deferred, the holder will get the guaranteed rate of return at regular intervals over the life of the contract. If it is variable deferred annuity, the payments depend on the performance of the underlying investment. This means the annuitant will not receive any guaranteed amount. However, the payments under the variable annuities are tax-free or tax-deferred.

There are several types of annuity payments depending on the nature of the annuity. If the annuitant or the nominee receives payments after the fixed period in spite of any contingency, such payments are called ?annuity with period certain?. If an annuity payment continues after the death of the annuitant, it is called a ?life annuity? payment. If it continues over the annuitant?s life or for a fixed period (whichever is longer), it is called ?life with period certain?. The latest version for annuity payments is called ?equity-indexed annuity payments?.

It is not advisable for the annuitant to get cash value of the annuity by cashing out, unless the annuitant is under financial stress. The ultimate responsibility of cashing out an annuity and getting the payments rests on the shoulders of the annuitant.

Cash For Annuities Web provides detailed information on cash for annuities, annuity brokers, annuity buyers, annuity payments and more. Cash For Annuities Web is affiliated with Cash Out Refinancing Scams.

The Variable Annuity and Retirement Planning

2007-12-14T21:57:00.001-08:00

Over the years, there has been much debate on why an annuity should not be used for retirement planning. However, we will save that debate for another day. The annuity got its first big break in the retirement business when TIAA-CREF introduced the variable plan in 1952. Today, the variable annuity is used in many other forms, including the 403B, 457, and the traditional, Roth, Simple, and Sep-IRA. We will discuss some of the features and benefits of the annuity. Earnings inside the variable annuity grow on a tax-deferred basis and are subject to a 10% early withdraw penalty before age 59 1/2, except with a few exceptions including: separation from your job at age 55 or older, when money is used to pay medical bills exceeding 7.5 % of your Adjusted Gross Income in a given year, etc. Also, the variable annuity generally has a death benefit. Usually, the annuity's death benefit will pay the named beneficiary the greater of the premiums paid into the account minus any withdraws or the current account balance. For example: if you invest $100,000 in a variable annuity and upon your death, your account balance is only worth $30,000, your beneficiary will receive $100,000 minus expenses and withdraws, but taxes may be due at that time (this applies only to annuities with this specific death benefit). The variable annuity usually has several separate accounts. One of the advantages of the variable annuity is the chance for diversification, in spite of limited dollars. If a person has only $3000 to invest in a Roth IRA and wants a portfolio to match their risk tolerance, this can generally be attained in a variable annuity. The separate accounts in a variable annuity represent large, small, mid-cap, international investments, bonds, or indexes like the S& P 500 or the Russell 2000.?Often a person would have to pay a $1000 to a mutual fund company, in order to have the same offering of diversification. You can usually switch between fund families in a variable annuity without paying another sales charge, unlike some mutual funds. While everyone might not need a variable annuity for retirement, some people enjoy its features. The death benefit of some of these annuities allow some individuals to leave an inheritance without the worry of market loss. However, be mindful that a variable annuity is subject to retirement rules and regulations, just as one's IRA or 401K at work. *Disclaimer: This article does not constitute financial advice. Always consult a tax advisor or financial advisor when making investment decisions.?

Mr. Jason Cunningham is the author of many articles at Financial-Shopper-Network.Com and Financial Shopper Network Blog

Annuity Buyers

2007-12-12T22:07:00.001-08:00

Annuities are a series of payments made by an institution like an insurance company to the annuitant (annuity holder) at regular intervals over a fixed time period. Most of annuity buyers are from middle-class families having household income less than $75,000 a year, and their main objective is to have an income after retirement.

According to one survey, the average age of an annuity buyer is 66 years old and retired. Generally these people think that their financial needs after retirement will not be covered by a pension or other employment related retirement funds. They invest in annuity plans to have guaranteed income. A person can purchase an annuity if a lump sum is received like a pension, the sale of land or house or any inherited property.

A potential annuity buyer, particularly first time buyer, should be very careful in deciding the type of the annuity to invest in and on the insurance company to go with. Some annuities offer guaranteed income and some s do not. Some annuities offer returns even after the death of the annuitant, but some types of annuities provide income only for a fixed time period. The excess income over the total premium amount is tax-free in some types of annuities, whereas in some other cases, the excess income is taxable. Therefore, the buyer has to understand the basic types of annuities in order to decide which type is suitable for their financial situation.

The buyer can seek the help and advice of finance professional or annuity broker.

Before purchasing an annuity, the buyer has to understand the payment options. For instance, the company may pay some types of annuities only after the death of the annuitant and some after a fixed time period ranging from five to twenty years. The buyer should know about front-end loading fees, yearly maintenance fees and surrender charges. Another important point to know is the credit rating of the insurance company by agencies like Standard and Poors and Moody?s and Fitch. These agencies assess the insurance company?s ability to meet all of its claims on time. After considering all these criteria, annuity buyers need to select the best annuity to purchase and to later on enjoy.

Cash For Annuities provides detailed information on cash for annuities, annuity brokers, annuity buyers, annuity payments and more. Cash For Annuities is affliated with Cash Out Refinancing Scams

Annuity Appointment Setting: Super Sales Techniques

2007-12-09T21:54:00.002-08:00

When it comes to annuity appointment setting, the most effective technique by far is the Drop-By System. However, if you've totaled your car, broken both legs and must resort to a phone call, I've always taught my agents that the best way to engage your prospect on the phone is to open with a statement that is anything but your typical warm fuzzy, "How are you today?" Your statement must (1) make them sweat a little and (2) pose a problem which is at the same time a benefit of owning an annuity (without saying the word 'annuity'). Note: This formula works with any product.

For example, "HELLO, MRS. JONES? MY NAME IS _______, FROM THE _____ AGENCY DOWN THE STREET, AND I'VE BEEN TRYING TO REACH YOU BECAUSE I FIND THAT SOME OF MY RETIRED CLIENTS ARE PAYING INCOME TAXES ON THEIR SOCIAL SECURITY, AND THEY DON'T NEED TO. I'M A FINANCIAL ADVISOR IN THE AREA AND I CAN SHOW YOU HOW TO REDUCE OR ELIMINATE INCOME TAXES ON YOUR SOCIAL SECURITY. I'LL SPEND 10 TO 15 MINUTES WITH YOU UNLESS YOU KEEP ME LONGER. THERE'S NO CHARGE. I'VE GOT WEDNESDAY MORNING AT 10:00 AVAILABLE, OR WOULD 2:00 ON THURSDAY AFTERNOON BE BETTER FOR YOU?"

Your prospect's responsibility at this point is to say, "No thanks, I'm not interested," or maybe something not so kindhearted. You've just interrupted her world. However, you'll do much better at annuity appointment setting if you understand that a 'No' is simply a latent reaction from childhood. In our formative years, the one word we heard more than any other was the dreaded, "No!" It's what we got almost every time we asked for something:

"Mommy, can I have a cookie?"

"No."

"Daddy, can I drive the car?"

"No."

Your job as a professional salesperson is to understand that humans are hardwired to respond to practically any proposition with the word, "No." It's how our circuits work. Negative responses can range from a simple 'no' to a blistering harangue. Your steadfast, automatic response must be to pull the plug, short-circuit the connection, neutralize the way your prospect's mind works.

Try the old 'feel, felt, found': "I CAN CERTAINLY UNDERSTAND HOW YOU FEEL, MRS. JONES. A LOT OF PEOPLE I TALK TO INCLUDING A FEW OF YOUR NEIGHBORS FELT THE SAME WAY AT FIRST. BUT AFTER THEY UNDERSTOOD THE PROBLEM AND HOW SIMPLE THE SOLUTION WAS, THEY FOUND THEY WERE SAVING HUNDREDS OF DOLLARS A YEAR IN UNNECESSARY TAXES." By pouring water on your prospect's natural resistance, you weaken their response and, at the same time, maneuver the phone call into a back-and-forth conversation.

Now you've earned the right to continue: "...YOU SEE, WE FIND THAT A LOT OF PEOPLE SIMPLY DON'T REALIZE THAT A PORTION OF THEIR ESTATE THAT THEY WANT TO LEAVE TO THEIR CHILDREN AND GRANDCHILDREN WILL BE EATEN UP IN PROBATE COURT, AND IT DOESN'T HAVE TO BE THAT WAY. I'M A FINANCIAL ADVISOR IN THIS AREA AND I CAN SHOW YOU HOW TO FIX THAT. I'LL SPEND 10 TO 15 MINUTES WITH YOU UNLESS YOU KEEP ME LONGER. THERE'S NO CHARGE. I'VE GOT WEDNESDAY MORNING AT 10:00 AVAILABLE, OR WOULD 2:00 THIS THURSDAY AFTERNOON BE BETTER FOR YOU?"

Get ready for it. Here it comes again: "No thanks," she says, "we've already got a financial advisor who's been with us for years." Mrs. Jones is only playing her part in this annuity appointment setting rivalry. At the same time, she's telling you exactly how she wants you to get her to say yes. Pay attention to her words. This time you're going to, first, neutralize her objection, then use her exact words to identify "... THE PEOPLE WHO BENEFIT THE MOST FROM OUR SERVICES."

For example, "I CAN CERTAINLY UNDERSTAND HOW YOU FEEL, MRS. JONES (neutralize). HOWEVER, THE PEOPLE WHO BENEFIT THE MOST FROM OUR SERVICES ARE THE ONES WHO ALREADY HAVE FINANCIAL ADVISORS. SEE, A GOOD FINANCIAL ADVISOR, JUST LIKE A GOOD DOCTOR, WILL OFTEN ADVISE YOU TO GET A SECOND OPINION. I'M A SPECIALIST IN THIS AREA AND I CAN SHOW YOU HOW TO AVOID THE EXPENSE AND DELAYS OF PROBATE. I'LL SPEND 10 TO 15 MINUTES WITH YOU UNLESS YOU KEEP ME LONGER. THERE'S NO CHARGE. I'VE GOT WEDNESDAY MORNING AT 10:00 AVAILABLE, OR WOULD 2:00 ON THURSDAY AFTERNOON BE BETTER FOR YOU?"

At this point, if you don't hear a click and a dial tone, you may hear a slight wavering in her voice. Her "We-already-have-a-financial-advisor" line worked with the last salesperson. What's up with you? Now she has to either think about her response or default to the old standby, "I'm not interested." If she responds with anything but "I'm not interested," she'll be telling you how she wants you to get her to say yes. These responses can include,

"I'm too busy right now."

"Our son-in-law takes care of those things."

"We've already got all the insurance we need."

"I don't have any money."

"I never accept telephone solicitations."

You must stay one step ahead of your opponent by preparing your script for all possible scenarios. Sit down and write them out in your own words. Use the above script as an outline and insert the gist of her response in the appropriate places. Then follow up with another problem for her to worry about which is also a benefit of owning an annuity. Don't be afraid to get creative. Annuity appointment setting is a game of wits and circular logic. The more you differentiate yourself from the last three telemarketers she sent to the insane asylum, the more successful you'll be at appointment setting and, ultimately, selling annuities.

Finally, if you're dealing with an indifferent, uncreative type who just can't come up with anything but, "I'm not interested," try this:

"MRS. JONES, IT'S OKAY IF YOU'RE NOT INTERESTED. I JUST WANT TO ASK YOU ONE QUESTION. WORK WITH ME HERE. IMAGINE THAT EVERYTHING YOU'RE WORTH - YOUR HOME, YOUR SAVINGS, YOUR INVESTMENTS, EVERYTHING - WAS GOING TO BE TAKEN AWAY FROM YOU FIRST THING NEXT WEEK. AND LET'S SAY I CALLED YOU JUST LIKE I'M DOING TODAY, AND TOLD YOU I COULD PROTECT YOUR FINANCIAL FUTURE IN A RESPONSIBLE WAY SO THAT NONE OF THOSE BAD THINGS WOULD HAPPEN. WOULD YOU STILL TELL ME YOU'RE NOT INTERESTED, OR WOULD YOU LET ME SIT DOWN WITH YOU AND SHOW YOU HOW IT WORKS BEFORE ANYTHING LIKE THAT HAPPENS? YOU SEE, WE KNOW THAT MANY PEOPLE, MAYBE EVEN YOU, HAVE A LOT OF THEIR LIFE'S SAVINGS SITTING IN THE BANK, OR IN STOCKS AND BONDS, OR IN REAL ESTATE, WHERE IT CAN BE ATTACHED BY A JUDGEMENT IN A CIVIL COURT OF LAW ... AND IT DOESN'T HAVE TO BE THAT WAY. I'M A FINANCIAL ADVISOR IN THIS AREA AND I CAN SHOW YOU HOW TO FIX THAT. I'LL SPEND 10 TO 15 MINUTES WITH YOU UNLESS YOU KEEP ME LONGER. THERE'S NO CHARGE. I'VE GOT WEDNESDAY MORNING AT 10:00 AVAILABLE, OR WOULD 2:00 THIS THURSDAY AFTERNOON BE BETTER FOR YOU?"

Get the picture? You need to eat, sleep and breathe annuity appointment setting.

Closing Annuity Sales: The First Appointment

2007-12-09T21:54:00.001-08:00

Closing annuity sales is the point of the exercise, and every professional knows the euphoria of a perfect presentation and close. Some salespeople believe it is the hand of destiny ushering them through the signatures, to the button-up, the handshake, and the drive home where they bask in the good fortune of finding that "low-hanging fruit." The true professional spends the drive home replaying a different visual, a series of familiar steps that lead inevitably, unerringly to a new client for life. One salesperson gets lucky, the other gets validation.

The perfect presentation and close takes on a Zen-like quality, like the sound of one hand clapping. There is no sale, no close. There is a problem that finds a solution, a fear that finds comfort. All reasoning, all motivation comes from the client. Aristotle nailed it 2400 years ago: "The fool tells me his reasons, the wise man persuades me with my own."

Now that you've given your first pair of Safe Money Seminars and collected a couple dozen appointments, here are some defining dos and don'ts. When precisely executed, my three appointment process of closing annuity sales will assure not only sales, but new clients for life. For example, do remember that all prospects walk into your office (or await your arrival at their home) with important core emotional values - wants, fears, hopes and dreams. Don't jump into your pitch. If you insist on jumping into your pitch, save yourself the trouble and take a loaded revolver, get in the bathtub and blow your brains out. You'll earn roughly the same commission.

The FUD Factor

Instead, do observe the FUD Factor. All people have fears, uncertainties and doubts that haunt subconscious caverns and, unless confronted, render their host incapable of making decisions. These FUDs not only define their host's sense of self but also dictate how they relate to their money. Mr. and Mrs. Prospect are their fears, uncertainties and doubts as well as their money - all in varying yet fuzzy degrees. You must use your first appointment, your get-acquainted session, to deliberately and profoundly connect with these inner emotions.

How? Never lead with statements when you can lead with questions. Ask questions -- well-crafted, provocative, incisive questions -- and don't be so eager to tell your story that you neglect to hear your prospect's story. These are your money moments. The more time you spend soaking in the FUDs of your prospects, the more they will respect your advice, then help you craft solutions to their liking. The more they will think it was their idea.

And pay attention to body language, words they choke on, core emotional issues and outright fears. People are motivated by fear and greed, but fear will move them to action faster and with greater resolve than greed. Key in on the boogeyman, what keeps them up at night, what haunts their dreams. Most people need a psychiatrist more than they need a financial advisor. Fact is, a financial advisor is not very good at closing annuity sales until he or she becomes a good psychiatrist.

Three Questions

My favorite leading question is simply, "Where are you from originally?" When asked sincerely, the question gives them permission to take an autobiographical stroll down memory lane. Their eyes take on a nostalgic glow. There is a scant grin as they drift back in time recalling their childhood, their parents and siblings, schoolmates, the home they grew up in, what things were like in those days, and the passport that led them into adulthood. Your job here is to clam up and listen. Take notes like a freshman. You'll discover bedrock values along with irrational beliefs, paralyzing fears and whimsical dreams. This exercise has nothing to do directly with closing annuity sales or getting to their money... but everything to do with getting to know who earned their money. The value of their assets is less important that the values that created them.

Next I say, "Tell me about the work you did before you retired." A person's identity is largely defined by their occupational history. What they did for a living is who they are. Their need to find a sympathetic ear to acknowledge career accomplishments is on equal footing with their need to trust someone to respect what they've accumulated along the way. Talk of work often leads voluntarily to talk of IRAs and 401(k)s, but this is not an invitation for you to pounce on their nest egg. They've been waiting all their lives for a financial advisor to just listen to them. Use conversation extenders like, "...and you feel this way because?" or "...and that experience is why you've kept your money in CDs all this time?" Get to the blood, sweat and tears that went into earning their nest egg.

Then I say, "Now then, John and Mary, tell me why you asked for this appointment and maybe the two or three most important things you'd like us to talk about." They usually have a list of items to go over from your Safe Money Seminar, but if at this point they look at you like a deer in the headlights, try an alternate question like, "Tell me about the best financial move you ever made." Many people will seize the opportunity to gloat over victories. Surprisingly often, however, they'll volunteer their worst financial moves in painful detail, blow by blow, reaching deep to expose feelings that cry for emotional connection. This is when you know at a primal level that nothing in your arsenal for closing annuity sales equals the fire power of getting your prospects to tell their story.

A Few Wows

Your ratio of them talking to you talking should be about 5 to 1 or, in an hour, 50 minutes them to 10 minutes you. Remember, in your Safe Money Seminar you asked them to bring copies of last year's tax return, life insurance and annuity policies, and brokerage account statements. Since the first appointment is not about the diagnosis (finding what's broken), nor the prescription (closing annuity sales), you'll use the little time you have to 'Wow' them as much as possible. For example, if their tax return shows $7,000 to $8,000 in interest income, it's a safe bet they have roughly $200,000 in bank CDs paying 3.5% to 4% interest. You quickly do the math, glance up from the documents and say in nonchalant doctor speak, "And you've got, what, about $200,000 in bank CDs?" They verify the dollar amount for your notes and think, "Wow, how does he know that?"

Finally, you conclude the meeting. The simple message here is that, like any good doctor, you have not attempted any diagnosis and are far from prescribing any cure. The operative word here is "research." It will take you a week to research their current portfolio and/or assorted financial documents and identify areas that are not reaching their highest potential, not serving their needs, or outright broken and need fixing. Set the return appointment for the same time, same place, one week from today. Of course, you'll need to keep their documents for your research which, incidentally, reinforces the element of trust and assures their return visit. Then stand up, shake hands, look them in the eyes and thank them for sharing their lives with you.

You have done more toward closing annuity sales than anything you could have told them.

http://www.Free-Insurance-Leads.com Gary Le Mon is a wholesale distributor of fixed indexed annuities for Allianz, American Equity, Sun Life Financial, and ING. and developer of the Safe Money Seminar, a financial planning seminar for Seniors, Gary serves as guest

Making A Rational Decision About A Structured Settlement Annuity

2007-12-07T22:01:00.000-08:00

It is very easy to become aghast by the sheer volume of e-mails, web sites, tv and journal advertising and legal talk when considering the issue of structured settlements or annuities. We will investigate what, exactly, a structured settlement is so that you are better able to understand the concept and be able to make a rational decision.

To begin, let's explore just what a structured settlement is. It is simply a series of guaranteed disbursals - also known as annuities - made over a certain period of time and is usually the result of an injury settlement or another situation in which you are awarded access to a substantial whole amount of money. It is the alternative to accepting an upfront lump sum.

Structured settlements are individualized arrangements meant to help you cover present and forthcoming expenses. By working closely with an experienced attorney or financial advisor you can determine an effective structured settlement to give you the security of a fixed income over a set period of time. This can help you sleep better at night by taking a huge burden off your back.

There are various types of these annuities. You can learn more about them over at http://www.fixmyannuity.com, but here is a brief explanation of each. This is by no means a complete list, but should give you a fair idea of what is out there:

A certain Period Annuity has a certain period of time for the payments to be paid out. They can be made monthly, quarterly, semi-annually or annually. Upon your death, all remaining payments are made to you beneficiary.

A Life Annuity will make periodic contributions for a guaranteed number of years (based on your life expectancy) or for life, whichever is up first. Again, the beneficiary receives any remaining disbursals should you die before the full whole amount is paid.

A Temporary Life Annuity will pay you for a designated number of years if you are still living, so your annuity ends when you die. There?s no provision for a beneficiary to collect remaining disbursals.

In a Life Contingent Lump Sum you?ll receive a lump sum, provided you are alive on the due date. If you die before this date, your beneficiary is not entitled to the whole amount.

Finally, with Lump Sum Option you can set it up to receive the lump sum on a particular date, say, fifteen years from now. Your beneficiary will receive the lump sum on the future date if you have died before then.

So which type is right for you? The best advice we can offer is to do your fact-finding work. Discuss your situation with your financial advisor and family. That way when you make the decision you'll know what your getting and have considered all the options.

Yvonne Volante, the author, is a big fan of annuities and proper planning and writes for fixmyannuity.com, which is the premier annuity resource on the internet. You can see all of the articles over at http://www.fixmyannuity.com

Annuity Quotes

2007-12-06T22:31:00.001-08:00

To gain an understanding of annuities, we need to start at the beginning. In the year 1740, the Presbyterian Church began to use annuities in order to aid widows and the priestly order. The simple purpose of an annuity is to ensure that you have a sound financial back up during retirement. Today, there are different kinds of products sold by Insurance companies and agents. Before you take out an annuity ensure that the Insurance Company has a license to practice in your state. The State Insurance Commission is a legal body that regulates Insurance companies to make sure they have adequate funds so that investments are not jeopardized.

Different companies have annuities with different rates and returns. There could be several reasons why you would want an annuity. For example, an annuity helps you pay reduced tax, avoid probate and save for the future. You can look out for your future and that of your heirs. By putting money away for an inheritance, you are making a wise decision for your family. When choosing an annuity quote it is important to remember your financial status and goal for the future. Annuity quotes differ according to the annuity you choose. There are several companies that offer quotes for Immediate Annuities, Fixed Annuities, Equity-indexed Annuities and Variable Annuities.

If you choose an Immediate Annuity, then you can expect to receive a fixed or variable sum of money every month or quarter or according to your specification. The amount of money you receive is based on your initial deposit and the time duration of your annuity. If you choose a variable plan then make sure that your investments do very well. A Fixed Annuity is a low risk annuity because you receive a minimum interest whether or not your investments do well. These are more stable in nature and you will always know what to expect. There is no gamble in investing in such an annuity. Some companies that offer this are National Western Life, Jefferson Pilot Life, Great American Life Insurance Company, Allianz Life, American National Insurance Company etc.

Equity Indexed Annuities, as the name suggests is based on the stock market index. If your chosen index rises then you gain and vice versa. There is a certain amount of risk in this product; however, the bright side is that you gain if your investments do well. Variable annuities give you the freedom to decide where you want to invest, but it also does not protect you in case of loss. The benefit is that you get to keep all the profit. These annuities are good for those who are completely aware of the market dynamics. Therefore, before choosing an annuity quote you must first know what kind of annuity you really require. There are several online insurance portals that offer to give you an annuity quote instantly. All you have to do is fill out an online form and your quote will find its way to you.

In conclusion, choose an annuity quote that comes from the right source. Ensure that your agent is licensed, knowledgeable, reputable and experienced. It is always best to go for an agent that comes as a recommended source. Further, you can opt to receive multiple annuity quotes so you have a choice in front of you.

Robert co-founded Insurance4USA.com, an insurance quote shopping service, in 1999. He has been a licensed insurance agent in New York State since 1990