What product is more tax advantaged: An annuity or a VUL?
107828
Strictly speaking, they are equally tax advantaged. It is true that withdrawals from the annuity prior to age 59.5 will receive a 10% penalty.\n\nHowever, I would not recommend purchasing a VUL unles you need the death benefit. There is no point in paying the extra costs for a benefit you don't need.
47967
It depends on how much risk you want and how much you are hoping to gain. \n\nThe safest would be CDs. Check ingdirect.com, Their 18 month CDs are yielding about 4.5%\nhttp://home.ingdirect.com/products/products.asp?s=OrangeCD\n\nIf you are willing to take some risk you can invest it in mutual funds or even stocks. Investing in the market is more risky but can provide greater returns.
683498
I agree with the longer response below.  However, you should always consult a professional when trying to find out answers to your financial future.  Asking questions like this can be valuable when trying to figure out where to go, but you should always get professional advise.  I currently have a tax sheltered annuity and am young and it fits in nicely to my portfolio.  I used a few places during my search that maybe can help you http://annuities.rezponze.com was one of them.  I filled out the forms and was contacted by someone that explained the best way to fit this into my portfolio...\nYou can also go to http://www.annuity.com and read a few articles there....
1098015
According to Wikipedia, an annuity is "any stream of fixed payments over a specified period of time."\n\nThe payments for an ordinary annuity are made at the end of each period of time.  An annuity due, on the other hand, is an annuity whose payments are due at the beginning of the period of time.
762453
Premium bonds yield  3.75 % on the average, but are tax free and therefore equivalent to 4.69% gross. Bank deposits now pay about 5.2% gross\n\nFurthermore a DA is certain, while PB are a gamble, unless you own a very large amount. \n\nIt is a fundamental principle of investing that the riskier the investment the greater should be the return. Here the opposite is the case. Therefore the DA wins hands down.\n(But I would still buy one or two PB for the hope they offer of something big)
155737
I am a distributing member for Vemma Nutritional Supplements.  The Vemma product includes a Mineral Supplement and a Mangosteen, Green Tea and Aloe product with vitamins.  It cost me less than $75.00 to start my business and that includes a free marketing website.  I do not have to carry inventory and all sales are direct from the company to the consumer.  I do not have credit card risk - the company handles all that.  The tax advantages are the same as for any sole proprietorship business, cell phone, a portion of car, home, and any normal business expenses (including attending the annual convention in March in Las Vegas.)  Check it out on my website: http://www.myvemma.com/mjf and write or call me if you have any questions.  -- Mark
563968
Do not use insurance as an investment.  If you invest in a universal life, or other cash building policy has limitations as to the amount of return VS death benefit.  This is a point where the IRS calls it a MEC, or Modified Endowment Contract.  You will get taxed heavily if this value is superceeded; they consider the policy an investment rather than insurance.  The only way to get around this is to increase death benefit (which raises your monthly/semi-annual/annual premium), decreasing your return.  And term life insurance only pays if you die.  If you are 29, look towards an IRA that provides various investment options and invest fairly aggressively.  If you have access to a company 401K, utilize that, as many employers match a certain percentage, and most of it is pre-tax contribution.  If you are OK with lower yields and like the availability of cash, look into a money market account from a large institution, such as vanguard or fidelity.
373813
I would seek independent professional advice.\n\nWith a sum that size they would pay for themselves even if only in terms of money saved on taxes etc, and they will be able to advise on a range of investment opportunities and the risks and benefits of each.
142039
Go with a 529.  Great tax advantages.  You can then pick from a ton of investment choices to place inside of the 529.  For more info - http://www.529s.com
1138012
I used to be a financial rep....yes annuities are actually an insurance product which gives the rep more commissions, but they can also be a great product as well....I liked Protective annuities if he has them, low fee's, good fund selection....also remember that they work better with a larger sum of money, but make sure he explaines them fully to you before you invest...
653896
There are pros and cons of variable annuities as an investment.  I think the key here is whether your employer has a matching program (like you contribute 5%, and they match 5%).  If yes, you should still join, variable annuities or not, you are getting free money from them.  If there is no matching, you should forget about them and open your own 401K account else where and invest in regular mutual funds yourself.
668260
FV = A * (1.09^3 + 1.09^2 + 1.09)\n\nWhere A = 12,000.\n\nKey assumption - you are adding (or taking) 12,000 each year to (out of) the annuity (that's what your Q says).\n\n[ADDED] Excuse me, but the right answer IS here.  Mine comes to $42,878.  Answer Girl is awfully close and probably differs only in assumption of the timing of the 12K deposits.  I'm an MBA and this is part of what I do for a living.
119201
I suggest getting busy with your own Traditional and Roth IRAs. Vanguard has great offerings and very low costs. The annuities route is very complex, but if your situation is That Good it would be useful to contact a real financial advisor.
899104
I'm not sure of your data, but I know this, if you are talking about investments and include "risk free rate of interest" and 9 percent together in the same sentence, you are at risk of disappointment.\n\nYou need other information.  If you want low risk, you will get the inverse relationship to interest rates.  Higher rates are there because of higher risk.  The exception is in trust annuities, where the higher rates are safely offered because of the higher risk of your mortality--whereupon the company gets to keep more of your money because you died, since they are usually sold to the elderly for retirement income.
189132
529's are a great way to save money on a pre-tax basis, yes. There are other ways to do so, but they don't enjoy the same tax advantages. There's a risk & return calculation to be made there. You should talk with a financial advisor - there are some special tax rules involving gifts to children and spouses that might allow you to get some tax advantages as well while putting the money into some kind of investment vehicle. Treasury bonds (acutally bonds of all stripes) are a very attractive investment at the moment, with interest rates up so high.
918984
Check into a reputable insurance co.  Not one offered by the bank or broker.  You can get a much higher return if you go directly to an insurance co.  Rollover your 401K to a Fixed Annuity if you like safety and want to see it grow and no risk of the market.  Hope that gives you some info.
431020
Here is a very thorough and point-by-point comparison of these two products:\n\nhttp://financialsoft.about.com/od/reviewsfinancesoftware/a/MDel06vsQDel06.htm