Flexibility In Your Annuity

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 When a person is faced with a mandatory deposit or has funds withdrawn from his paycheck for deposit into an IRA or 401 K plan, it is usually easy and painless.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

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

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.

A Guide to Annuity Products

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

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

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.

Radio Talk Show Annuity Selling System

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.

LeadZILLA Voted Best Annuity Lead Program

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.

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.

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 <u>did</u> 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?

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

Can Your Annuity Do This?

Many people buy annuities according to their agent's recommendations. However, many people do not even know what they own. It is a good idea to take inventory of your investments, and particularly your annuity. It is important to understand what your annuity can and cannot do and what features it has. Here are some of the things you definitely must be sure to know about your annuity:

1. What interest rates are you currently getting?
2. Are the interest rates getting worse?
3. What is the rating of your insurance company? (Critical)
4. What are your surrender charges?
5. Is your principal ever at risk?
6. What retirement & income options does your annuity have?
7. Is your annuity Medicaid Friendly?
8. Did you properly designate your beneficiary annuitant and even ownership of your annuity?9. How safe is your annuity?
10. Is your annuity subject to double taxation?
12. What is your minimum guarantee?
13. Are you eligible for a 1035 exchange?
14. What happens in the event of your death? Are your beneficiaries entitled to all of the money or are there penalties?

This is a good beginning inventory list. These questions are important in assuring you are doing what is right for you. As we said before, the best annuity is the one that is best for YOU. And by taking inventory of what you own, you can now assess it against your own goals and make sure there is a match. By the way, this is a good process to go through periodically. As you know, your needs change over time. And as they change, you must make sure your investments are always in line with your goals. If they are, great. If they aren't, well, change your goals---or change your investments! But make sure there is a match.

Hopefully this helps. And remember, it's not what you know; it's what you do with what you know. If this makes sense, then pull your annuities out and take inventory. There is no better time than the present.

Ignorance is not bliss...
Tony Bahu is the author of the controversial document, 'Annuities: The Shocking Truths Revealed', which reveals the secrets that the banks and insurance companies don't want you to know. For more information on his document, visit www.annuitymd.com