Posts by Rising Capital Associates

The Common Issues With Annuities

annuitiesRecently, a handful of companies across the US are switching up the benefits packages offered to their employees. Typically, in a high-authority company, employers will have the opportunity to put money away in their 401(k) while their company matches a certain percentage. Or, some companies will even offer shares of life insurance. However, we are seeing that more and more companies are doing away with life insurance policies and offering something different: annuities. With cuts being made to retirement spending, more and more employees are faced with a real loss on their hands in terms of their retirement fund. While annuities do have their benefits, they also have many problems. The number one problem is their total cost.

Understanding Annuity Problems

The problems with annuities run far and wide; however, there are 3 main issues that make it hard for individuals to benefit from–making it more of a risk than a reward. With that, let’s take a closer look at the top 3 problems with annuities:

The Anti Selection

A major problem with annuities is anti-selection. In terms of anti-selection, actuaries must price different annuity rates based on extraordinarily high life expectancy rates. This mainly due to the fact that many elderly people–ranging from good to poor health–aren’t too concerned with outliving their savings. This means that they are less likely to invest in annuities. So, when comparing life insurance policies and annuities together, there’s quite a major difference in the way these policies are priced. For instance, for certain life insurance policies, many insurers will require their clients to partake in a thorough medical exam. They require this because they know that anyone who’s diagnosed with a life-threatening medical condition will have a better chance of investing in a life insurance policy. Which goes to show how insurers take advantage of their clients. But annuities aren’t any better since their rates are based on disproportionate assumptions which greatly discourages many senior citizens from investing.

Costs to Providing Guarantees For Fixed Payouts

Another significant problem with annuities is the costs that come with fixed payout guarantees. You’ll find that many insurers will try to sell an annuity on the basis that they can guarantee fixed payouts to their clients month after month during their retirement years. However, to do so, the insurer must ensure their money with careful conservation in mind. To truly attain a fixed payout month after month, there are significant costs attached. By investing a client’s money conservatively, there’s minimal room to really grow their investment which greatly hurts them in the long run.

Extra Fees For Marketing and Administrative Efforts

What many people don’t realize is that the industry of individual annuities comes with significant marketing and administrative costs. However, these costs are not something that your typical employer is faced with. And on many occasions, (many due to this and the anti-selection factor) they find that providing their employees with annuity packages rather than life insurance or the other benefit package varieties. Due to this, many employers find it far more affordable to offer their employees with group annuity purchasing instead. But, unfortunately, this is something that poorly affects the long-term finances of the said employees since they are the ones stuck paying the marketing and administrative fees. \

Sell Your Annuity For Cash

At Rising Capital Associates, you can sell your annuity for cash that you can use immediately. Contact us today for more informati0n on how we can help you.

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Banks Aiding In Preventing Elderly Financial Abuse

elderly-financial-abuseBack in February, US Senator Kirsten Gillibrand announced her Senior Financial Empowerment Act proposal. If it passes, this bill would not only regulate financial abuse reporting, but it would also make funding available for both education and fraud protection amongst senior citizens. The creation of this bill was inspired by the massive shift our economy is experiencing due to the retirement of many in the baby-boomer generation. Additionally, the baby-boomer generation seems to be a major target to the financial exploitations caused by criminals and scammers. For this reason, it’s essential to have a form of protection in place–like the bill created by US Senator Kirsten Gillibrand–for senior citizens to rely on.

Baby Boomers Are Reaching Retirement Age

For decades, experts believed that a major population shift would occur as the baby-boomer generation began to retire. This predicted shift would result in record numbers of the elderly in America. Currently, we are seeing this prediction come true as record levels of the elderly population have been reached. According to the US Census Bureau, approximately one in five Americans will be 65 or older by the time we reach 2030. Additionally, the American Bankers Association (ABA) reported that about a third of the population is made up of senior citizens over the age of 50. As much of our population consists of the baby-boomer generation, they also contribute significantly to our country’s financial wealth. The American Bankers Association also stated that this generation held more than 70% of deposits in a variety of banking institutions (source).

Although their contributions to this society have been significant, many senior citizens are living on a fixed-income or regimented retirement savings. Unfortunately, for these reasons and more, this generation of senior citizens is a major target to financial fraud.  

Seniors Targeted For Fraud

According to the American Bankers Association, senior citizens in our society lose approximately $3 billion a year to a variety of financial scams. This is an epidemic in its own that needs a quick solution. Luckily more and more banks are keeping their eyes open for any suspicious activity that looks like it could be derived from fraud. Luckily, our society is taking action and devising plans that could help to reduce the amount of fraudulent activity that occurs to senior citizens. Just last week, the American Bankers Association announced a new initiative to help bankers detect and take a larger role in protecting their customers. To do so, the ABA sent out a list of ‘red flags’ that bankers should be aware of. These ‘red flags’ include:

  • Opening lines of credits without purpose.
  • Making quick transfers of large sums in and out of different accounts.
  • Writing out checks as ‘cash’ or for very vague purposes.
  • The inability to pay their routine bills.
  • Uncertainty when withdrawing money.

In addition to this list, the ABA also created a publication called, “Protecting Seniors: A Banking Resource Guide for Partnering with Law Enforcement and Adult Protective Services.” This guide was also put together with the help of the National Sheriffs’ Association, National Adult Protective Services Association, and the Consumer Financial Protection Bureau. This publication is an excellent read for both senior citizens and those who work within banking institutions.

Keeping our senior citizens safe from fraud is a major issue in the US, and one that we are finally starting to make progress in preventing.


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The Costs of Annuities

annuitiesWhen it comes time to think about retirement and what investment plans are the best for you and your family, the option of annuities usually come up in conversation. Although they can seem beneficial in some situations, annuities aren’t designed for every financial situation and can come with unexpected high costs. Of course, just like any other investment opportunity, it’s extremely important to take into consideration the drawbacks it might potentially have. However, in the case of annuities, the #1 drawback is cost.

Annuity Drawbacks

For clarification, annuities are fixed sums of money that are paid to someone annually. Although they are typically a form of investment, annuities can also be given to individuals in settlement cases. Initially, many individuals, especially those close to retiring, believe that annuities are a beneficial investment that will carry them through their retirement years. However, annuities do come at a cost. Many time, these costs aren’t disclosed upfront and are also a bit difficult for investors to determine at first. With this in mind, it’s important to remember that if there isn’t a fee initially listed on your contract, that doesn’t mean you won’t be paying it. Annuities are filled with hidden fees. Let’s take a closer look:


With annuities and annuities salesmen, comes commission fees. The person who sells you an annuity is sure to get a cut of the sale, and a substantial one at that. However, to avoid this outcome, many individuals may decide to go through an ‘investment advisor’. Typically, annuity commision ranges from 6% to 10% of the sale.

Management fees

Management fees are typically very high in certain forms of annuities–especially with variable annuities. Since these kinds of annuities invest your money in mutual funds, fees (expense ratios) are charged to the owner of the annuity.

Insurance charges

Also known as M&E fees (mortality and expense), these fees are charged to ensure that certain guarantees that come with the annuity are covered. Some insurance costs can total to 2%-3% per year.

Surrender charges

Another common charge that comes with annuity purchasing are fees called surrender charges. Surrender charges are put in place to ensure that the annuity owners won’t pull out their money earlier than agreed on. If they do surrender their annuity and pull their money earlier than they are supposed to, they will be required to pay numerous surrender charges. Typically, surrender charges are 7% of the annuity’s value after one year and then will decrease by 1% every year after. However, many surrender fees start at a much higher percentage.


Other potential fees include underwriting fees, IRS penalties fees–usually in the case of an early withdrawal–fees for added features, etc. If you decided to add other members of your family (riders) to your policy, you will be required to pay extra charges as well.  

As you can see, there are plenty of fees associated with annuity purchasing. So, before investing, it’s so important to have all the facts about annuities in front of you.

Is It Worth It?

With so many hidden fees, will annuities ever be worth their total cost? Most importantly, is this something that’s worth investing your money in? Honestly, it truly depends on the individual’s financial background and the type of annuity/company they decide to invest in. For example, one could save money on commission fees if they decide to invest their money in a direct-sold annuity. However, if you find that an annuity is the right investment tool for you, be sure to ask your investment advisor or salesperson specific questions regarding any associated fees that come with your annuity plan.

Sell Your Annuity Payments For Cash

Rising Capital Associates provides the best options to sell your annuity for cash or structured settlements for cash. Contact us today at 866-44-5061 for more information


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Here’s Why Selling Your Annuity Can Make Sense

annuitiesThroughout the years, millions and millions of annuities have been sold to families around the world, and with that, billions of dollars are awarded to the insurance companies that sell them. It’s obvious that annuities are profitable for various insurance companies, but will they really provide you with the long-term financial assistance you need? Annuities are not conducive to every lifestyle, so, if you have an annuity you believe might not cover your financial needs, you may want to consider selling it to a structured settlement/annuity purchasing company who will provide you with a sizable lump sum payment in return.

When Selling Your Annuity Makes Sense

Money Management

If you like to carefully manage your assets–or having full access to them–having an annuity plan can make that pretty difficult. Usually, insurance companies take over that role when you purchase an annuity plan from them, providing you with a monthly income. However, this monthly income may not be substantial enough to supplement you through your retirement and it’s one that you cannot increase. So, if you prefer to manage your money yourself, it would be very ideal to sell your annuity payments for cash. Once you’ve sold your annuity, you will be given immediate access to your well-deserved cash, allowing you to manage or invest it in any way you would like.

A Change in Retirement Plans

Even though we spend our entire working lives planning for retirement, you simply never know what’s going to happen during that time. Though we hope for the best, unexpected events can occur–medical emergencies that end in costly medical bills; a poor investment; assisted living costs; home refinancing; anything could happen. If a change in your retirement plan occurs and you are waiting on your annuity payments to help finance it, it may be time to sell your annuity.

The Loss of A Spouse

Although it’s something no one likes to think about, the passing of a spouse in an unexpected event that can come with great financial stress. If you believe that you or your spouse will have trouble managing assets or not be left with substantial funds to supplement them through their retirement, then you may want to consider other options. A beneficial option would be to sell the annuity plan you previously purchased. In selling your annuity plan, you will receive a large, lump sum in return, allowing you to invest it where you need it. It will also provide you with the means to support you or your spouse in the event of a passing. It’s a terrible thing to think about, but it’s necessary in order to ensure that your loved ones are being taken care of.


If you own an annuity and any of these reasons apply to you, then it might be time to sell your annuity and supply yourself with a healthy and financially fruitful retirement.  At Rising Capital, we make it simple to sell your annuity or sell your structured settlements for cash. Contact us today for more information at 866-444-5061.




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How Saving Receipts Can Earn You Money

receiptsIf it was your resolution to save more money during the new year, then you’ll want to stay tuned. Did you know that an efficient way to save money during 2018 can be done by keeping your receipts? However, keeping your receipts is only the first half of the job; the second half requires a touch of research. Try to lend a little bit of your smartphone storage for apps that will give you cashback on purchases you’ve made both online and instore. These types of cashback-savings tools are especially great for grocery purchases that are made throughout the week. By simply uploading their receipts on cashback apps, many consumers have reported saving up to $1,500!

Class Action Lawsuits

In addition to cashback apps, saving your receipts can also prove to be useful in the event of a class action lawsuit. For example, from October 1st, 2015 to May 19th, 2017, there was a class action lawsuit against Burger King and their Croissan’wich breakfast sandwiches. In their lawsuit, officials claimed that many Burger King locations were charging customers a higher price for two breakfast sandwiches when customers used a coupon. Customers who purchased these sandwiches between the specified time were eligible for a $5 cash settlement for each purchase. Though small in comparison to many other class-action lawsuits, many customers were able to claim more than one settlement with their saved receipts. However, be aware that settlements from class action lawsuits aren’t always received in a timely manner. Some affected customers claimed they didn’t receive their settlement until the following year. Scott Hardy, founder and CEO of Tap Class Actions, explains, “The wheels of justice tend to move very slowly. It takes anywhere from six months to a year or more to get paid for any kind of settlement that’s out there.” So, if you are due money from a class action lawsuit, you’ll have to be very patient in receiving your money. Just remember to always attach your receipts for proof when submitting any claims; you’ll be surprised how many consumers forget to do so, resulting in their claim being thrown out.

Tax Season

Saving your receipts can also prove to be very beneficial during tax season. For example, in South Carolina, there’s a new motor fuel income tax credit that went into effect this past January. Any South Carolina residents who saved their receipts from gas fill-ups or car maintenance, can submit them and claim a tax return that will be received in 2019 (source). The South Carolina Department of Revenue explained that this new tax break was designed to alleviate the state’s motor fuel fee that took an increase this year. However, this is not the only instance where residents can submit receipts for tax returns. Those who own a business or are independent contractors have ample opportunities to submit valid receipts that will go towards their tax return–gas receipts, needed items to support their business, educational expenses, etc.

In addition to saving receipts, there’s an abundance of ways to successfully save money this year. Try clipping coupons more often when going food shopping, or enroll in rewards programs that will give your points towards your purchases. The possibilities of saving money are endless.

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Indexed Annuities Are Causing Some Issues

indexed-annuityAn indexed annuity is a variation of a fixed and variable annuity. This type of annuity is taxed-deferred and considered to be an ideal savings option for someone who is looking for something more long term. Indexed annuities allow for many opportunities for growth with protecting policy owners in the event of a down market.

Typically, an indexed annuity will monitor the market index–hence its name–such as the S&P 500. Recently, researchers and analysts have noticed that over the years, indexed annuities have evolved greatly. However, this expansion has insurance markets quite concerned. In order to compete with the versatility of indexed annuities, some insurance companies are developing their own products and investment plans for a leg up in the market.

Lack of Transparency And Understandibility

After carefully studying these different products and investment policies, researchers have noticed that they are not nearly as transparent and understandable as standard annuity plans from reputable investment companies. Researchers also have discovered that almost all of this ‘unique’ plans don’t offer the best financial benefits as traditional market indexes do (source).

Wink Inc discovered that in a  2013 study that there were only 6 companies who offered ‘hybrid indices’(something that adds more complexity with less growth advantage) for indexed annuities.  Today, that number has increased to 50. Additionally, they were able to determine that aside from S&P 500, these indices are the second most popular with more than 30% of sales recorded in the third quarter. Some of these indices include Pimco Global Optima Index, S&P Multi-Asset Risk Control 5% Excess Return Index, and the BNP Paribas Momentum Multi Asset 5 Index. Due to the surge in indexed annuities, the demand for hybrid indices is becoming more and more popular amongst insurance companies. Additionally, these hybrid indices offer policyholders an interest rate that will not cap, unlike its competitor.

Hybrid Indices

These hybrid indices may seem enticing for someone who is looking for an investment plan yet has little knowledge of the ins and outs of it, however, it’s leaving many insurance agents uneasy. Sheryl Moore, the president and CEO of consulting firm Moore Market Intelligence, claims that any insurance agent who gives clients information on these hybrid indices are actually giving them unregistered, incorrect investment advice, which is very frowned upon in this business practice. Not only is it frowned upon, but it also can result in criminal charges, punishment fees, loss of insurance license, and even jail time depending on the state you reside and work in. Many other insurance agents, CEOs, executive directors, etc.–not just Moore–are as equally uneasy and skeptical about this new brand of insurance. So much so, that you won’t find it at any reputable insurance agency.

Sell Your Annuity to Rising Capital Associates

If you no longer wish to continue receiving your annuity payments and would prefer a lump sum of a cash, contact us. At Rising Capital Associates, you can sell your annuity payments for cash now. You can also sell your structured settlement payments for cash now as well. 


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The Equifax Breach Leaves Seniors More Vulnerable

scam-alertThis past September, Equifax released alarming news that they had experienced one of the largest cybersecurity breaches in history. From mid-May through July of 2017, over 145.5 million US residents were put at risk of identity theft. The criminals responsible for this breach were able to access personal information such as names, Social Security numbers, birth dates, addresses, and driver’s license numbers. Although this breach was monumental, leaving millions of Americans feeling exploited, vulnerable, and in constant fear of identity, Equifax created resources that allowed those affected to take proper measurements to further secure their personal information.

As of recently, there have not been any reported unauthorized activity on any consumer or commercial credit reporting databases. However, in light of this breach, senior citizens need to be on constant alert for scams or fraudulent activity that can occur on their banking accounts. Not only are they vulnerable to financial scams in general, but the Equifax breach could leave them at an even greater risk. Although many senior citizens are highly capable of avoiding financial scams, it’s always highly important for family member or caregiver to look out and protect them as well.

Seniors and Caretakers Working Together to Avoid Scammers

In a survey conducted by the Cooperative Credit Union Association (CCUA)–a trade group based in New England–research showed that more than two-thirds (out of 1,700 people) of caretakers reported that scammers had attempted to target their elderly relatives (Source). Furthermore, the most popular attempt at fraud was through phone calls; however, 22% of those same scam attempts were made through either email or another form of online contact.

In addition to their study, the CCUA found that those same caretakers worry that their loved ones will not have the ability to spot a fraud as efficiently as they can. With the Equifax breach being the newest form of financial fraud, caregivers are worried more now than ever.

As stated previously, 145.5 million consumer credit files were compromised in the Equifax breach. With the two most important pieces of information being hacked and accessed–birth dates and driver’s license numbers–caregivers are growing increasingly concerned. With access to their driver’s license numbers, birth date, and Social Security number, scammers will have full capability to cross-reference their information and begin to target their victims by their age group. Unfortunately, it’s far too often that fraud is detected once it’s too late, therefore, it’s highly important for family members, friends, and caretakers to educate themselves on ways to help their loved ones avoid the risk of falling victim to a financial fraud.

Protecting Seniors From Scams

Here are some tips to protect your elderly relatives from scams and fraudsters:

  1. Talk to them regularly about all of their financial decisions. 
  2. Inform them of ways to handle potential scammers when you aren’t there to do it for them. It’s important for them to have an idea of what to look out for in order to successfully avoid any forms of financial scam; even if it means writing up a script on what they can say to scammers that call them.
  3. Advise them that if they think they are receiving a call that doesn’t seem right, then they need to hang up immediately.

Being educated and helping your loved one become more educated is one of the best courses of action in order to thoroughly protect and prevent any type of financial fraud from occurring to your elderly loved one.

With a breach as significant as the one that Equifax faced, it’s highly important for seniors to be on high alert for any forms of scams that are a result of this massive infringement on the personal information of US citizens.

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Getting Out Of An Annuity

annuity paymentsAn annuity is a form of insurance payment that families can opt to invest in that will provide them with annual payments to sustain them for the rest of their lives. Usually, this is a third party contract between families and the insurance company of their selection.

However annuities are not beneficial for everyone and in many circumstances, families find this out when it’s too late. Unfortunately, this causes a major problem because opting out of your annuity plan can be more costly than what it’s actually worth. So, before you decide to end your annuity plan and contract, be sure you know all of you options and consequences you will be faced with upon doing this.

Ending Your Annuity

Depending on the annuity plan you’ve chosen, it can be very hard to get out of your contract without facing severe financial consequences. However, Michael Green, a financial planner with Wechter Feldman Wealth Management, explains that even though you have a signed contract for an annuity plan, it doesn’t necessarily mean that you are locked in forever; you always have options (Source).

Green also advises that if you are considering investing in an annuity plan, you should really do your research first. One of the biggest reasons that families want to get out of their annuity plan is due to their lack of knowledge of the annuity in the first place. When canceling your plan, your annuity payout option is final, so it’s highly important to make sure the amount you will receive is enough to support you through retirement and then some.

Many families are faced with the issue that their payout is much, much lower than what they are worth and struggle to keep up with their bills–leading to a very stressful and unrelaxed retirement. Ending your annuity can be very tricky and costly since there’s the possibility of a major tax consequence being involved. In many cases where a family wants to end their annuity plan, depending on the type of plan they picked, the could be faced with paying a large sum of money in tax fees. However, if you want to dispose of your annuity plan and your surrender period has expired, you will have the ability to liquidate or terminate your contract without having to worry about those pesky and costly tax fees.

There’s also the possibility of losing out on the benefits such as death and long-term care when ending your annuity plan. So, be sure to you know all the facts before terminating your plan.

Sell Your Annuity Payments For Cash with Rising Capital

If you are attempting to end your annuity but your payout options are significantly lower than what you are worth or what you were originally promised, and you don’t want to pay the thousands and thousands in tax fees, you may want to consider the option of liquidating your annuity. If you do decide to liquidate your annuity, you will have the option to sell it for a better cash-now option. 

At Rising Capital, we can provide you with a lump sum in exchange for your annuity. Contact us today at 1-866-444-5061


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How The Powerball Annuity And Lump Sum Works

powerballWhen receiving their money, the very lucky winners of the Powerball have two different options they can choose from. In most circumstances, when collecting their prize, the winners can choose either a lump-sum cash payment or an annuity that makes payments over the course of 30 years. However, when making this decision, winners must be aware that if they choose a lump-sum, they will receive a lower sum of money than what the Powerball originally was.

Of course, like any other financial decision, there are the benefits and the drawbacks to accepting either a lump-sum or an annuity. Lucky for you, we’ve broken down the key concepts behind each option. So, in the event you find yourself a (very) lucky winner of the Powerball, this article will help you come up with the educated decision of which option would work best for you and your family.

Choosing The Annuity

Here’s what you need to know if you decided to go with the annuity option:

In the event the Powerball winner chooses the annuity option, they are opting out of receiving their winnings all at once and instead, will spread out the payments on a yearly basis. Initially, the winners will receive an immediate payment upon winning, followed by annual payments made over a course of 29 years with a grand total of 30 payments. In an effort to maintain the cost of living, each payment will increase by approximately 5% every year. For example, let’s say the Powerball winnings are $83 million and the winners decided to go with an annuity plan that will spread their $83 million in payments made over a 30-year time period. Their immediate payment will be approximately $1,249,269.00 while their payment in the next year will be $1,311,733.00 and so on and so forth. Each year their payment will increase 5% until their payment reaches $5,142,161.00 in the final year, leaving a grand total of $83 million in a timespan of 30 years. The annuity option is also inflation-protected; in other words–as long as you are smart with your finances–the annuity options eliminates the possibility of going into debt. Basically, protecting you from your own frivolous spending.

Additionally, the Powerball annuity payments are marked as “annuity certain” which means that in the event the winner dies before they have reached their 30 allotted payments, the installments will still be made to their estate and their heirs upon their passing.

Taking a Lump Sum Payment

Surprisingly, it’s quite often that we see the Powerball winners choose the lump sum option–a smaller value–rather than waiting for their winnings to be received as yearly installments. It’s understandable, though; not everyone–who’s just won such a significant amount of money–has the patience to wait on a yearly basis to obtain that money. When the stakes are that high, they want their money almost immediately.

With the availability of instant cash, winners have the ability to do what they want with it at any time. This includes the type of investments that many winners may want to consider investing their money with. 

Taxes On Your Winnings

A major factor that most fail to take into consideration is taxes. If you choose the annuity option, you will only be required to pay taxes on the amount of money you receive each year. Whereas with the lump-sum option, winners will be required to pay the taxes off in one whole sum upon obtaining their proceedings. You’ll also have to pay off any taxes that come with investment options such as dividends, capital gains, and interest income each year that you invest. However, many people seem to find this aspect a bit troubling, seeing that it’s not very easy to predict what the federal income tax rate might be; it’s constantly fluctuating.

As you can see, each option has their own set of pros and cons and in the end, it all comes down to what would work best for you and your family in the long run. However, after hearing the endless stories or Powerball winners going broke after choosing a lump-sum option, the annuity plan might just be the smarter option

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4 Things You Should Know About Annuities

annuitiesAn annuity is a contract made between you and an insurance company where, in exchange for a lump sum payment, the insurance company will provide you and your family with long-term care benefits, a source of income, asset growth, and a death benefit. Types of annuities include: joint, individual, impaired life, guaranteed, fixed, variable, immediate, and deferred; the most common being a Fixed Annuity.

However, as enticing as annuities may seem to those who are nearing retirement, annuity payments can be tricky, inflexible, and binding. Nevertheless, for those who have run out of options for IRA and 401(k) funding, annuities begin to look like an appealing option. If you are unfamiliar with annuities and what they offer, then you’ve come to the right place. Here are 4 things you should probably know about annuities before investing in one:

1. Annuities don’t offer tax deductions immediately.

Any annuities that are purchased externally from an IRA are funded through the means of after-tax dollars. In simpler terms, you won’t be getting a tax break right off the bat by investing in an annuity. 

2. Most annuities have early withdrawal penalties

Unless you are faced with a debilitating ailment or pass way, you and your family are not allowed to make early withdrawals from your annuity. If you do, you will be faced with a hefty penalty. Normally, you will be charged with a fine of 10% of your withdrawal amount in the event you take money out of your annuity before your allotted time. The same rule applies to IRA’s and 401(k)’s: if you decided to withdraw money before the age of 59 ½, you will be penalized with a 10% fine of your withdrawal amount.  

3. Things get expensive if you cancel

If you break the signed contract made with an investor and decided to cancel your annuity plan, you will be held accountable for a significant amount of money. This is typically known as a surrender charge and based on the investor you purchased your annuity from, you will be required to pay approximately 7% of your total funds during the first year. The only sure way you can avoid paying a surrender charge is if you decided to cancel your plan during the first 30 days.

Of course, similar to the penalties for withdrawing funds early, there are a few exceptions in which you won’t be required to pay a sum of your money if you cancel your plan early. If you become disabled, terminally ill, or pass away, you or your family will not be faced with fines upon canceling your annuity plan.

4. Annuity withdrawals are partially taxable

Any withdrawals that are made from your annuity will be subject to taxes. However, the taxation rules and process differ from your standard IRA or 401 (k).

In the case of an annuity, you will be taxed in what they call a ‘last-in, first-out’ basis. This means that when you make your withdrawals, your money will be classified as ‘earnings’ and therefore, will be taxed. However, this will no longer be the case when the overall value of your annuity becomes lower than the sum you paid in premiums.

Sell Your Annuity or Structured Settlement with Rising Capital Associates

Annuities can be a very difficult investment to take part in and requires many rules, terms, and guidelines to be followed accordingly. However, there are many people who decide to invest in an annuity and later find that it does not meet their expectations or simply can no longer afford the premiums that are required of them to pay.

If you find that your annuity no longer fits your current needs, sell your annuity payments for cash. We will purchase your unwanted annuity and in exchange, will provide you with a lump sum paid in full! With our services, you won’t ever have to worry about losing your annuity money through the penalties of canceling your plan early. Why wait when you can have your money now?  

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