Annuitant
The person to whom an annuity is payable.
Annuity
A long-term contract sold by life insurance companies that guarantees fixed or variable payments to the purchaser at regular intervals. Payments are usually scheduled to begin at a future time, such as retirement. Some annuities provide tax-deferred earnings, often as part of retirement plans.
Annuity Cash Refund
The contract for an annuity offering income for life may include a death benefit for the total premiums paid. When the annuitant dies, the annuity cash refund will be the net sum of premiums paid minus the amount received in annuity payments.
Annuity Certain
An option in an annuity contract that allows the annuity owner to select a future level of income covering a specified number of years (generally 10 years). If the annuitant dies before the end of this period, the remaining obligation is transferred to a designated beneficiary.
Annuity Joint Life
An annuity option for two or more individuals where payments cease at the death of the first annuitant.
Annuity Joint and Survivor
An annuity option that provides payments for two designated annuitants. Upon the death of the first annuitant, the surviving annuitant receives prearranged, continued payments for life, based on a percentage received by the first annuitant.
Annuity Modified Refund
In a contributory retirement plan, the annuity beneficiary of a deceased retiree receives the accumulated balance of the pension fund, which is referred to as the annuity modified refund.
Annuity Payout Option
The choice of how payments from an annuity will be received: as a fixed dollar amount, for a fixed period, or over the lifetime(s) of one or two annuitants.
401(k)
A retirement account to which an eligible employee can contribute a certain amount of his or her pre-tax salary; earnings are tax-deferred. Some employers may match a stated percentage of employee 401(k) contributions. The reduced cost and liability of 401(k) plans appeal to employers.
403(b)
A qualified retirement plan similar to the 401(k), available to employees of nonprofit and government organizations.
Adjusted Gross Income (AGI)
The amount of income subject to federal income taxes. To determine AGI, subtract deductions (e.g., business expenses or IRA contributions) from gross income (employment income, interest income, dividends, and capital gains).
Aggressive Growth Fund
A mutual fund designed to maximize long-term capital growth, rather than dividend income, by investing in narrow market segments, small company stocks, and companies with high growth rates.
Annual Percentage Rate (APR)
The yearly cost of credit or a loan, expressed as a simple percentage. All consumer credit agreements and loans are legally required to disclose the APR.
Annual Report
A yearly statement that describes company management, operations, and financial information. The Securities and Exchange Commission (SEC) requires all corporations issuing registered stock to publish annual reports, which are sent to shareholders and also made available for public review.
Estate planning is something that too many of us keep putting off. It seems as if there will always be time to get around to it. However, waiting can have adverse affects on both your finances and the people you care about, causing you to lose a substantial portion of your estate to taxes. If you get the right planning now, you can help soften the blow of estate taxes later.
Taking Steps
Although planning for the future of those you care about may seem difficult, there are many simple and effective measures you can take now to protect your estate and provide for your family. The financial experts will help you find these steps and put your plan into motion. They will also help you with more complex issues, such as using trusts to protect the financial future of your family and your business.
In order to ensure every detail is handled correctly, work closely with a team of experts including attorneys, insurance specialists, investment advisors and financial planners. They examine a range of strategies so you have the plan that works best for you. Whatever your goals, they will find a way to achieve them.
Putting Experience on Your Side
Income tax planning has always been a vital part of financial service. They can put this experience to work for you to help avoid many of the taxes that can take more of your estate than is necessary. The tax experts know the steps you need to take now to protect your finances in the future. They stay informed and up-to-date with the variety of strategies and options available for lessening the effect of estate taxes. Even if you are already working with an attorney, they can provide the financial and tax expertise you need.
Unlike firms that sell, manage or invest trust or personal assets, their only goal is to help create and implement an estate plan that meets your needs. In this way, you can be assured they have no outside or special interest in a particular plan, financial institution or product.
