finance - mortgage - insuarence - credit


Selling An Annuity- Annuity Or Bank Account

  • Vegmund
  • Loans

As parents we often have to weigh the benefits of what is best for our children in the future. One of the best things we can do for our children is to plan financially for their future.

You can actual get some to buy annuity payments. That’s always a good deal. Or you may choose to hold on to the payments.

Have you ever compared the cons and pros of an annuity or bank account to one another?

As a parent these days it becomes vital to set up accounts to prepare for our children financially. We have to search out what is going to give us the most bang for our buck.

We also have to be aware that when we are making an investment it becomes important to guarantee the future use of the money.

Buy annuity payments? Who will buy an annuity payment? There are reputable companies online and in the market that will be happy to assist you. Please make sure that you check out the companies track record before you make that decision.

Did you know that an annuity gets you back on interest alone is much higher than a bank account? An annuity will get you an interest rate of 4.5% that will neither decrease or increase for the life of the annuity. It is a fixed rate. So that means that you will always draw the same amount of interest.

A bank account will draw you an interest of less than 1%. The biggest difference would be that the rate on the bank account can go up and down and may even surpass the rate of the annuity. Can anyone really afford that gamble?

In today’s economy, everyone is majorly concerned about taxation. And annuity is never taxable. Neither the original payment amount nor the interest accrued by the annuity is taxable. Wow that has to be a winner with taxation concerns!

Now how does this compare to a bank account. The interest on a bank account is taxable. However, the original payment amount is not taxable. Some good news there, but does not sound as good as the annuity does it?

The next question is quite a huge matter for everyone to consider. What happens if something happens to you the parent? Is that child going to be able to access that account?

With that annuity, a parent is able to set up how the child will receive the money. You can say that the child will receive a thousand a month until he reaches the age of 18. With a bank account the child will be locked out until he reaches age 18.

Are there any risks? With everything there is a risk. Back in the Great Depression, only six tenths of one percent was lost on annuities. A bank account is fully insured should something happen to our banking system. It would benefit one greatly to weigh out your options in this matter.

Being a parent is a difficult thing to approach these days. So make things a little easier for yourself by weighing your options carefully of which you should choose: an annuity or a bank account.

Searching For Retirement Solutions, Generation X Can Benefit From A Closer Look At Variable Annuitie

  • Vegmund
  • Loans

That individual, along with the millions belonging to that cohort, will be distinguished by experiences influenced by the exciting rise in technology and innovation, as well as by the uncertainties of competing successfully in the global macro-economy.

With one eye out to their retirement futures, it is no surprise then that Generation X is looking for investment solutions that balance income generation at retirement with potential growth of their investment

While advantages like an annuity’s guaranteed income feature provide the assurance that no matter what happens they can count on a tax-deferred reserve of income down the road, they should also keep a positive perspective on the equity market’s long term history as well.

Variable annuities in particular, can offer a distinctive way to construct a long-term investment plan. They provide a range of investment selections through sub-accounts that include stocks, bonds (or a blend of the two) and some even have fixed account options.

Despite the market’s ups and downs, the benefits of keeping invested in stocks are still abundantly clear as this chart illustrates. While market volatility can occasionally shake up even the most confident investor, looking back on the performance of the main domestic equity benchmark, the S&P 500 Index, offers an overwhelming view as to how often the number of positive performance years beat the number of negative performance years.


The payout rate reflects reductions for expenses and profits

Most importantly, ask yourself: “What features do I really want to pay for?” Then, with the help of a financial advisor, examine the variety of choices available – and weigh the advantages most appropriate for your situation.

Then, before investing, consider the investment objectives, risks, charges, and expenses of the annuity and its investment options.

Just like any other investment, variable annuities contain characteristics that may or may not match your own objectives, preferences or tolerance for risk. For many long-term Gen X investors, though, a variable annuity strategy can provide a real advantage to defining and attaining portfolio goals.

Guarantees apply to certain insurance and annuity products (not securities, variable or investment advisory products) and are subject to product terms, exclusions and limitations and the insurer’s claims-paying ability and financial strength.

Investment management fees

These are assessed depending on the investment options within variable annuities, and are similar to management fees on

mutual funds. Check the annuity prospectus for any underlying funds to learn how much you might pay.

How Bankruptcy Can Help With Foreclosure

  • Vegmund
  • Loans

If you fall behind on your mortgage payments, your lender may take steps to foreclose on the property – meaning it may take back your home and sell the property at a public auction.

The foreclosure process doesn’t happen overnight. In Colorado, a foreclosure typically starts after you fall behind on your payments for at least two months, and often three or four. This window of opportunity (commonly the reason behind a “strategic default”) will provide some time for you try alternate methods, such as loan forbearance, a short sale, or a deed in lieu of foreclosure.

If you’ve already tried these options, filing bankruptcy may provide another option to avoid or stall foreclosure. Here are some examples of how filing for bankruptcy can help you –

The Automatic Stay Delays Foreclosure

When you file either a Chapter 13 or Chapter 7 bankruptcy, the court automatically issues an order (called an “Order for Relief”) that contains a powerful tool known as the “automatic stay.” The automatic stay is a shield that legally forces your creditors to cease all of their collection activities immediately – no excuses. If your home is scheduled for a foreclosure sale, the sale will be postponed by the Bankruptcy Court while your bankruptcy case is processed, which typically takes three to four months. However, there are two important exceptions to this rule:

Motion to Lift the Automatic Stay. If the lender obtains the bankruptcy court’s permission to proceed with the sale by filing a “Motion to Lift the Automatic Stay”, you may lose the customary three to four months. But even then, your bankruptcy filing will typically postpone the sale for at least two months (or more), depending on the speed with which your lender files its Motion to Lift the Automatic Stay.

Foreclosure Notice Already Filed. Unfortunately, bankruptcy’s automatic stay won’t stop the clock on the advance notice that most states require before a foreclosure sale can be held (or a Motion to Lift the Automatic Stay can be filed).

How Chapter 13 Bankruptcy Can Help

Many people will do almost anything to stay in their homes for the indefinite future. If this describes you, and you’re behind on your mortgage payments with no feasible way to get them current, the only way to keep your home is to file a Chapter 13 bankruptcy.

How Chapter 13 Works. Chapter 13 bankruptcy lets you pay off the “arrearage” (late, unpaid payments) over the length of a repayment plan you propose (usually five years). You will need to demonstrate to the court that you earn enough income to at least meet your current mortgage payment at the same time you’re paying off the arrearage. Assuming you make all the required payments up to the end of the repayment plan, you’ll be able to avoid foreclosure and keep your home.

Stripping Off Second and Third Mortgage Payments. Chapter 13 may also help you eliminate the payments on your second or third mortgage. This is because, if your first mortgage is secured by the entire value of your home (which is possible if your home has dropped in value recently), you may no longer have any equity with which to secure the later mortgages. In this scenario, the bankruptcy court may allow you to “strip off” the second and third mortgages and re-categorize them as “unsecured debt.” Then, under your Chapter 13, you’ll be able to discharge these debts after successfully completing your Chapter 13 plan.

Canceling Debt. Chapter 7 bankruptcy will also cancel all the debt that is secured by your home, including your mortgage, as well as any second mortgage(s) and home equity loans.

Canceling Tax Liability for Certain Property Loans. Thanks to a new law, you no longer face tax liability for losses your mortgage or home-improvement lender incurs as a result of your default, whether you file for bankruptcy or not.

However, the new tax law doesn’t shield you from tax liability for losses the lender incurs after the foreclosure sale if:

This is one way Chapter 7 bankruptcy helps. It exempts you from tax liability on losses the lender incurs if you default on these other loans.

Chapter 7 Cannot Cancel the Foreclosure.

With all this debt being cancelled, you may be wondering why the foreclosure on your home won’t be cancelled too. The trouble is, when you bought your home you probably signed two documents (at least)—a promissory note to repay the mortgage loan, and a security agreement that could be recorded as a lien to enforce performance on the promissory note.

Chapter 7 bankruptcy will discharge your personal liability under the promissory note, but it doesn’t remove the lien. Chapter 7 will get rid of your debt but not the liens – you’ll still probably have to give up the house under the lien because that’s what your pledged as collateral for your loan.

If All Else Fails: Relief From Debt and Tax Liability

If you’re certain you won’t be able to propose a Chapter 13 repayment plan that a bankruptcy judge will approve, and Chapter 7 will provide only a temporary delay from the foreclosure sale, then what’s the point of either?

If you have to lose your home, you can at least view bankruptcy as the best way to get out from under your mortgage debt and tax liability. Bankruptcy also offers a way to save some money, which will help you find new shelter and weather the process of re-building your credit.

Considering filing for bankruptcy? Contact our offices in Denver today for a free consultation.