Annuity Payout Options

One of the many ways to secure the financial future is through the purchase of annuity contracts. Like the regular pension account, annuities are also a form of retirement savings that allows you to receive periodic pension after a series of contribution payments. One of the perks of acquiring annuities is that you can choose from the different types of contracts available. Another benefit is the different payout options to choose from for the periodic distributions. Here are some annuities explained:

Straight-Life Annuity

In a straight-life annuity, the annuitant receives regular payments until he dies. Therefore, the length of time that the insurance company will distribute the payouts will largely depend on how long the annuitant is going to live. The company bears risk in that it will only be able to keep whatever is left if the purchaser of the contract dies early. Also, there is no designated beneficiary, as no more payment is allowed after the annuitant’s death.

Life Annuity with Period Certain

The length of time that the payouts will be made is already determined in the life annuity with period certain option. Unlike the straight life annuity, there is a beneficiary designated who will receive any amount left should the annuitant die before the pre-determined period ends.

Unit Refund Life Annuity

In this payout option, there is no pre-determined annuity period. Therefore, the amount of payout will depend on the total value of the annuity units accumulated by the purchaser of the contract. And should he die without getting the whole value of the annuity units, the remaining portion will be paid to an assigned beneficiary.

Joint and Last Survivor Life Annuity

In the joint and last survivor life annuity option, lifetime payments are also made. In this type of payout, however, distributions are given to two people.

The future is uncertain that you should always come prepared. So make a decision now to purchase an annuity contract for a secured future.

How to Find Reputable Structured Settlement Purchaser

Settlements in structured payments have become a great part of worker’s compensation and personal injury claims in the U.S., based on the report of the NSSTA or National Structured Settlements Association. In fact in 2001, the NSSTA’s life insurance members procured more than $6.05 billion of annuities utilized as settlements for lawsuit claims.

A structured settlement is known as a way to disperse funds from a legal claim where a portion or all of the arrangement requires future periodic payouts. The funds are provided in regular installments such as monthly, quarterly, semi-annually, annually – either for a particular period of time or over the lifetime of the claimant. The structured settlement may as well incorporate some immediate money payments to pay for special damages. The payouts are typically made through an annuity purchase from a chosen life insurance company.

While a structured settlement comes with a number of benefits, some people still choose to look for a structured settlement purchaser if they find the structured payouts insufficient or inappropriate to compensate their huge expenses.

The Buyer

If you are one of those who consider selling your settlement, then you’ll be glad to know that you can make this happen almost easily. There are investors and financial institutions that search for sale settlement structured.

If you are experiencing a difficult time managing your funds, or declining offers from friends and family desiring to get their share in your wealth, then getting money in installments will surely make your money lasts longer. On the other hand, if you feel quite restricted by periodic payouts, especially if you are trying to procure a new home or make a large purchase, then selling the settlement structured will be your best option since you can’t borrow funds against your future payments covered by your settlement.

From an investment viewpoint, a structured settlement may not be useful or may not make real sense for everyone. In fact, several standard investments can furnish greater and larger long-term returns than what annuities can offer inside structured settlements. Thus, it may be more advantageous to search for a structured settlement purchase and get lump sum money and invest such funds yourself.

Tax Refund Advance

Tax Refund Advance

Tax season comes but once a year, and there are many options available to the taxpayer for handling their tax returns. Those who wish to prepare their own returns, there are on-line resources and various software programs available.  Others may have more detailed and difficult paperwork to complete during tax time, and may hire a personal accountant, or CPA, to handle the chore.  One of the more popular choices seems to be to use one of the commercial tax services like H and R Block or Jackson Hewitt.  The reason for their popularity generally is associated with the promise of a quick tax refund when one is anticipated.

Tax laws are constantly changing, so there are numerous ways for individuals and families to qualify for various tax refunds.  For many people the anticipation of a refund brings about much excitement, as well as impatience.  For  those who prepares their own taxes, they must file and wait a matter of weeks for their funds to arrive.  Yet for those individuals who have taxes prepared by a commercial preparation service, they can get money back in a matter of days, or even hours.

In order to receive a rapid return, commercial tax services offer what is called an “anticipated refund tax advance loan”.  This service actually issues a loan from a participating lender in the amount of the anticipated refund.  In actuality the taxpayer is taking out a personal loan which is secured by what their refund is supposed to be, meaning that there are costs attached to that privilege.  The fees for this service are quite high, and most people do not actually realize just how much money they are loosing in this process.

Tax preparers will generally charge inflated fees simply for the act of preparing tax paperwork.  This service is considered to be worth the headache for many people, and in those cases seem acceptable.  It seems that those who select the option to get their money back faster are also not bothered by the tax preparation fees, or the extra “minimal loan” fees, added for the speedy refund.  In most cases, the refund amount seems to be a substantial enough amount, that those people might not immediately miss the several hundred dollars they spend to receive it.

On average, a minimal loan fee might be as little as $30 dollars, but can become as high as several hundred dollars, depending on how much the actual return is worth.  For example, if an expected return would be as much as $1000, the taxpayer then might then be charged a $200 fee for the benefit of preparation and quick return.  This fee of course depends on the service provider, but in this example the fee amounts to loosing as much as 20% of the given tax return.

Most people are anxious to get their anticipated monies back at the end of the year.  For some it is a necessity as economic times are still hard for so many.  For others it is the result of a large scheduled project such as a home remodeling, a shopping spree, buying a new car, or any need that requires a substantial chunk of money. It is important to first understand what choices are available to handle tax returns and refund options, know what the benefits and costs are, and then choose wisely according to what the individual needs might be. Smart choices will make tax time less stressful and costly for the taxpayer.

Simplifying Monthly Business Accounting With Tax Software

When ever tax time rolls around, our eyes glaze over with questions about business expenses and deductions: Can she write off this short sleeved shirt? What about that business lunch a couple months ago? And then there’s the question of his XXXL shirts you put the company logos on. This it the point at which the need for some good business technology becomes obvious.

Various software programs are available for download for businesses to use.  Bookkeeping and tax software makes monthly business accounting easy.  This software will aid the bookkeeper or accountant in recording the businesses various financial transactions in the correct ledger, including payments, revenues, sales, and purchases.

A company has the choice of high-cost, low-cost, or even free software for their accounting and bookkeeping management.  The software chosen needs to have all the basic functions businesses will need and should incorporate the utilities needed for accounting, business taxes, and payroll. The program should include modules to assist businesses in creating monthly budgets, follow the progress of projects or jobs, and help with scheduling recurring payments.

It should have a section to help manage the bank transactions and credit card transactions.  There needs to be a component for tracking and paying bills along with a module for payroll management that assists with federal and state tax calculations.  It might include an element devoted to accounts receivables that help in creating invoices and estimations, calculating sales taxes and automatically calculate the full amounts due.

A reporting function would disclose to the business owner all financial transactions. The program chosen by any business should support both of the two major forms of accounting that businesses can use.  There is the Cash Basis and Accrual Method.  Service businesses generally operate on the Cash Basis Method and Manufacturing or Inventory businesses usually operate on the Accrual Method.

The software should also help a business in establishing internal controls to establish procedures for tracking all income and payments to prevent fraud, waste, or carelessness.  Making the right choice in the bookkeeping and tax software is essential and can help the business to function successfully.