What expenses are involved in fixed and variable annuities?  Are they less than with mutual funds?
483855
Expenses are generally higher in variable annuities than mutual funds but there are no front-end loads to deal with and annuities can offer things that mutual funds can't - like guarantees. \n\nAnnuities may help you 1)Receive guaranteed retirement income payments for as long as you live, 2)Protect beneficiaries with a death benefit 3)Diversify your investments. 4)Grow assets on a tax-deferred basis and 5)Avoid outliving your assets.\n\nIf you want to protect your beneficiaries, variable annuities generaly offer a choice of death benefits to protect assets for your beneficiaries should you die prior to annuitization. Also, a variable annuity’s death benefit avoids the expense and delays of probate.\n\nIf you're concerned about the volatility of the stock market some variable annuities offer an “Income Benefit” feature. This optional feature (available for an additional fee) can provide you with a minimum level of income (upon annuitizing the contract) should the market decline dramatically. Some variable annuities also offer principal protection features which guarantee that you will get back at least your initial investment after some stated period of time (typically ten years).
1028430
I invested. I make about $5,000 a month. I used over $1 million. My percieved risk was fairly low because of the way that I invested. I do not take time to manage it. That's what I hired my financial advisor and broker for.
952331
It depends on the mutual fund.  Exchange traded funds of which there are many,  the minimum cost is that of one share of the fund.  Funds with front end loads normally have a low minimum investment amount, about $500.  Funds without loads normally have higher minimums, about $2,500 to $5,000.  Some funds have very high minimums, $100,000 maybe even more.  \n\nIf I had to guess the average, I would have to guess about $1,000.
1151684
Investments with any life insurance policy are never a great investment. First of all, all your investments are being paid toward your life insurance, not for retirement. This means, if you ever miss a payment, your investments in the policy can be used to pay it. In this phase, you have borrowed money from your investment and must pay it back. If you don't and you die, this will be deducted from the face amount. In the event of your death, all your investments in the policy will be kept by the insurance company and your beneficiary will only get the face amount (less any miss payments and money borrowed from investments).\n\nI think you are confused what is a dividend paying policy. This is not the same as dividends in the mutual fund business. In life policies, if you receive a dividend, that means you are overpaying your premium. They use the word "dividend" just to make it more attractable to you.\n\nIn mutual funds, if you receive a dividend, that is because there were profits made in the fund and so the fund managers distribute it to all shareholders.
207338
No.... it's not tax free.  Best bet: Buy term from a reputable "low load" company & invest the difference. Commisions on Whole Life, Universal Life & Annuities are rediculous.... Look at 20 or 30 year fixed premium term policies as a best bet.........
744842
The idea of "buy and invest the difference" begs the question "invest what?"\n\nThis is an old argument regarding the relative expense of temporary insurance (term) vs. permanent insurance (whole life or universal life).\n\nTruth be known, all life insurance is term insurance.  That is, every year, the risk of our dying increases and so the cost to insure us increases.  You "cover" that with the most basic component of life insurance - annually renewable term (ART).  Some companies still sell it.\n\nA person who has an ART policy pays a little bit more every year as the premium is reset higher to offset the increased risk to the company that the insured might die.  ART becomes so expensive later in life that it is virtually unaffordable.  Most carriers that still sell it won't continue the policy past a certain age, typically 65 or 70 years old.\n\nThe most common temporary (term) insurance today is level-premium term.  All the carrier has done with this type of policy is level out the premiums for a specific period (5-, 10-, 15-, 20-, 25-, or 30-years).  The premium payor doesn't see the annually increasing pricing because they are paying more than for the ART design during the first years that this type of policy is in force.  At the end of the level premium period, the premium soars and the coverage is usually allowed to lapse by the premium payor for non-premium payment.\n\nPermanent life insurance is ART with a levelized premium many times higher than any type of term policy because the policy has got to be profitable for the company no matter how long the insured lives.  Because you overpay so much money for this type of coverage, the carrier provides a "cash value" which can be accessed by the policyowner.\n\n"Whole life" is the most expensive kind because the company guarantees the death benefit as long as premiums are paid.  "Universal life" is less expensive than whole life because the company only guarantees the death benefit as long as there is still cash value in the contract.  \n\nIf you stop making premium payments in a whole life contract and do not authorize the company to keep the policy in force by borrowing the premium payment out of the cash value, the company will lapse the contract and send you a check for any cash value in the contract (overpayment of premium plus any return of premium for a given year - called a dividend -  that is in the policy at that time).\n\nIf you stop making premium payments in a universal life contract, nothing happens as long as there is cash value to pay for those annually renewable term costs.  When the cash value runs out, the policy lapses.\n\nSo, what's all the buzz about "investing" the difference?  People are saying that instead of loading up an insurance contract with permanent coverage and associated costs, buy term for the period that you are going to need a death benefit, and put the money that you would otherwise have paid for premium and save it or invest it elsewhere, like mutual funds.  The theory is that you can get a better return on your money by doing so.\n\nIs it a valid argument?  Sure.  But, you have to factor into the equation that money growing in an insurance contract is not taxed until it is taken out (if ever) and that the payment of a death benefit to the beneficiary(ies) is not an income-taxable event, in most cases.  Investment funds are usually taxed annually  as interest or dividends are paid, and may be taxed again when either past to the next of kin or the next of kin sells the investments to reinvest or get the cash out.\n\nWhich path is better?  It all depends on your ability to get a better after-tax return on your investments than the tax-deferred growth of cash value in an insurance contract.\n\nWith the advent of other tax-deferred investment instruments, however, such as IRAs, 401(k) accounts, etc., the tax advantages of permanent insurance policy cash val
852348
Not sure where these other clowns are getting their information, but allow me to clarify some information:\n1.  Check to see what types of investments you are being placed into.  If it is a managed stock and bond portfolio (not mutual funds, annuities or insurance anything), 1.9% is certainly a fair fee so long as it includes market trades, and expert manager (with a track record) another expert looking at the economics, and the ability to have tax flexibility.  While 1.9% sounds expensive, mutual funds (yes even vanguard), including transaction costs can run from 1.25%-3% no matter how much money you have invested with them not to mention some even carry added commissions! (see www.personalfund.com).  Annuities are mutual funds plus insurance so add another .75-1.5% to the underlying funds on personalfund.com and you will see that most people are paying about 3.5% to have their money managed through annuites.  Typically with fee based planners as your assets go up in value so does the dollar amount of their fee, but the actual percentage goes down, which is not the case with mutual funds, not even vanguard.\nManaged stock accounts do allow you to control taxes much better than mutual funds as well.  Don't forget that the financial planner wants to see your fee go up in dollars, if is based on a percentage, then as your account grows, so will his fee.  If it continues to grow the percentage will drop, but the fee will continue to grow.\nSee if your financial planner is actually a financial planner.  If he doesn't have the letters CFP somewhere after his/her name, he ain't a planner.  But being a CFP doesn't mean squat if they aren't adding value (reducing taxes and risk while increasing returns and goals).  He should be meeting or willing to meet with your CPA and attorney.\n1.9% is high if you are investing in bonds, money market, savings accounts, or something that is guaranteed to pay a certain amount. 1.9% doesn't mean squat to someone who has annualized returns net of fees of 15% for the past 10 years with less risk than the S&P500, that is powerful money making.  If they aren't getting the returns and you have time to do it yourself, then you can find cheaper, but not necessarily better.\nBe cautious.  I have heard of some "advisors/planners" who charge an annual wealth manager fee and say their products don't make them any money, but then put clients in "safe-guaranteed" investments that don't charge commission when in reality they are annuities that pay 10-14% to the broker and the client is told they are free.
1042838
Health insurers are in a really tough business these days.  They face significant and unpredictable liability costs, huge amount of regulations at both the State and Fed level.  \n\nIn your place, I would stay away from investing in such companies.  You'd be a lot better off investing in an index mutual fund. \n\nIf you need clarification, contact me through "Answer" and I will edit my response.
743670
Depends on the state. Call around to a few Estate lawyers, also a Financial advisor. Also, places like Smith Barney (where my $ is) have all this in house and can help the minor plan for college, living expenses, ect. as well as in house lawyers that won't gouge them. Good luck!
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.
1000741
They are really two different types of costs.\n \nFixed cost are expenses that do not change in proportion to business activity. (e.g. rent, salaries, capital equipment...)\n\nVariable cost are expenses that change in proportion to business activity.(e.g. raw materials,....)\n\nYou certainly wouldn't want your rent to go up if your business had a good month, or your salary to go down if you had a bad month. Likewise, you wouldn't want the cost of your raw materials to stay the same each month if the demand decreases, so the advantage to converting from fixed to variable costs is that the costs will increase or decrease in proportion to business activity.
1141716
People (mostly young kids) post their whole assignment here...and yes, it does get our ire up sometimes.\n\nIf your question is the accounting question, I asked my wife (an accounting major) and she couldn't think of any reason why you would want to transfer fixed costs to variable. She mentioned that you could sort of "jimmy rig" fixed costs, by considering it as per unit manufactured, so the fixed cost really is determined by units of production. That is all I have...hope it helps.
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.
775561
It depends on the employees covered, their ages, and the investment performance of the plan.  The money has to be there by retirement age, so the younger employees have lower contributions over a longer period of time, and the money has more opportunity to grow.  Older employees have a higher "normal cost", since there is less time to save for their pensions.\n\nIf the plan investments do better than expected, then employer payments don't have to be as high.  But if the investments don't do as well, the company has to make up the difference over time.\n\nIt's usually free money to the employee - sometimes as much as 25% or more of their salary, but usually about 3-7% of their salary.  Depends on how good the plan is!
509384
One question per customer....lol\n\nForce yourself to save by taking money out of your account or check automatically.  Your 401k (if you have one) can accomplish that. So can automatic deductions for mutual funds (say $50 a month).\nTake the money out first and you'll not be able to spend it!!!
481148
I am currently a financial advisor for a financial planning and mutual fund company so I hope I can help out some. Lets look at your questions.\n\n1. Life and health are they as difficult?\n   When I took the health and life insurance test for KS it was fairly simple. I haven't taken P&C but everyone I knew that tooke Life & Health didn't have too much of a problem with it.\n\n2. Work from library and internet?\n   Possible, but I wouldn't recommend it. I would suggest to find a good study that is specific to your state. I used a company called AD Banker for my health and life. Went to a class for life and study their book for health. Fairly easy. They taught everything you need to know. Especially the state specific law questions.\n\n3.Annuity what are they?\n  Easiest way to explain an annuity is...You know what a CD is at a bank. It's basically an account where you put a lump-sum amount of money in and let it earn interest and the interest compounds. Well and annuity is similar to that. There are some differences. First, it's only sold through Insurance companies. Which is why you are required to have a life insurance license. Second, when your interest compounds in an annuity you don't have to pay taxes on the earnings until the money is withdrawn. A cd you pay taxes on interest earned in the year it's earned. Third, annuities are the only investment vehicle that can guarantee a monthly payment for your whole life. What happens is you put money in it earns interest and then eventually you annuitize it. The insurance company then sends you a check each month until you die. Thats the basics of it. You'll learn more in depth about them when you study for your exam.\n4.Advice...\n  It's not easy. Take into consideration that while working in an insurance/financial services job you usually are self-employed and you just represent a company. Therefore you are really responsible for making your own paycheck. Most places put you on strictly commission. So if you don't sell anything this month you could go hungry. Make sure that you talk to all of your friends and family members. They will be the starting point of your business. Always, Always, Always, I cannot stress this enough, ask for referrals from people. It will make your business along with your paycheck grow. Don't stress out if you want to go into mutual funds or financial planning or anything. Such as getting your NASD series 6,7,63,65. They are somewhat difficult, but if you study and prepare they are actually really easy. Now, when you take these tests remember they are designed to trick you. Most of the time they are testing you on whether or not you know how to take tests. Read each question over twice make sure you know what it's asking. Watch out for questions that contain double negatives in them. And usually go with your first instinct. It's generally correct. Don't worry about any of the tests or understanding stuff greatly. You'll learn a lot about stuff as you go along. Good luck
131505
You can, but it is redundant. Retirement funds are tax deferred; annuities are tax deferred. Unless you really like the additional guaranteesw offered by some annuities, and you're willing to pay the costs of the annuity then OK, but otherwise why pay the additional fees?