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What is an annuity guarantee period?

By Posted by: Ivon T. Hughes On May 3, 2012 · Add Comment · In retirement
Annuity Guarantee Period – Life annuities are guaranteed for the life of the annuitant or co annuitant; you cannot outlive the annuity payments. And the extra feature of a guarantee period means that you can ensure that someone gets a benefit if you die early. For non-registered funds: a named beneficiary has the choice of [...]
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Annuity Due 2012 | Tables, Rates and Calculators

By Posted by: Ivon T. Hughes On May 1, 2012 · Add Comment · In retirement
What is an Annuity Due? An annuity due is almost identical to a regular annuity. When you buy an annuity due contract, you make a deposit with an annuity company. In exchange for your investment, the annuity company agrees to give you monthly payments in the future. The main feature of an annuity due is [...]
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Income from an Annuity

By Posted by: Ivon T. Hughes On April 30, 2012 · Add Comment · In retirement
What happens when you wait to receive income from an annuity? If you are waiting because you believe you will get more money each month, well, that might be true; your monthly payments might be greater. But how much greater? Let’s say instead of taking a $1000 monthly annuity income today, you wait 6 months [...]
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Waiting For Your Annuity?

By Posted by: Ivon T. Hughes On April 27, 2012 · Add Comment · In retirement
Are you waiting for interest rates to go up before you take your annuity? Even our government have realized that waiting may not be the thing to do as it pays a reduced pension at 60 and a full pension at 65. The person who waits till 65 must live till 73 or 74 to [...]
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Inheritance Annuity Payments for a Beneficiary

By Posted by: Ivon T. Hughes On April 26, 2012 · Add Comment · In retirement
If you have a parent or older relative for whom you are financially responsible in one way or another, here is a suggestion. Let’s say your relative is 80 years old with $100,000 to invest. GICs pay nothing, the stock market is too volatile and what you need is the best fixed income. The parent [...]
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Annuity Tax Schedule

By Posted by: Ivon T. Hughes On April 25, 2012 · Add Comment · In retirement
From time to time, we are asked to explain how annuity taxation works and, in particular, how annuity taxation works for registered annuities. Case study: Single Annuity, Male, Age 62, RRSP, $150,000, Guarantee Period of 10 years. Purchase date May 1, 2012, Start Date June 1, 2012 This man pays income tax on the complete [...]
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Today’s Annuity Rates as of April 24, 2012

By Posted by: Ivon T. Hughes On April 24, 2012 · Add Comment · In retirement
Today’s Annuity Rates: 24-April-2012 The following annuity rates comparison tables are for registered funds, with a premium amount of $100,000 and with a “no guarantee” period. Comparison Table: Single Male Annuity Rates Comparison Table: Single Female Annuity Rates Comparison Table: Joint Annuity Rates Canadian Annuity Quotes To obtain your own personal Canadian annuity quote please [...]
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Waiting to start your life annuity payments?

By Posted by: Ivon T. Hughes On April 23, 2012 · Add Comment · In retirement
If you are waiting to start your life annuity payments, it might be a good idea to decide on a fixed date to start so that you can avoid large losses. The reason most people wait to commence  life annuity payments is because they believe interest rates will increase and that rise will mean a [...]
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Will Annuity Rates Go Up In 2012?

By Posted by: Ivon T. Hughes On April 20, 2012 · Add Comment · In retirement
I am asked on a daily basis whether annuity rates will go up in 2012 and the plain answer is that “I don’t know”. But that is the wrong question. Whether annuity rates go up or down, does not answer your real question. Your real question is “Should I wait to take the annuity?” And [...]
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Regular Annuity vs Index Annuity Example

By Posted by: Ivon T. Hughes On April 19, 2012 · Add Comment · In retirement
If you wait to take your annuity, it has the same result as indexing. The payment to increase 2% per year. Compare these two tables of a Regular Annuity and an Indexed Annuity. Example of a Regular Annuity (non-indexed) Print: Regular-Annuity.pdf Example of an Index Annuity Print: Indexed-Annuity.pdf The indexed payment is a lot less. [...]
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