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Open Question: Surrendering a non-qualified Annuity. Deduct Loss?
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Hi -
I have read over a lot of informative help here and elsewhere and really appreciate your sound advice too.
Besides, me being VERY upset about the situation I will attempt to explain my best. Recently, January 29, 2008 I had $112,665.26 in a non-qualified (* money put in that was already taxed =$85,500.00*) variable annuity. My cost basis, actual money put in was $85,500.00. Currently, Nov. 20, 2008 it has approximately $44,000.00 left.
If the market keeps going down I plan to surrender it before the end of the year. If so, is the loss of $68,665.26 declared an ordinary or capital loss ? I have read at this link that the IRS declares it an ordinary loss and I think is capable to be totally written off. The link;
http://www.fool.com/personal-finance/tax...
I really appreciate your help in assisting me with what to do before the end of 2008. The proceeds were to help me take care of my 84 year old mother. I am 50. I hope I DO NOT have to be penalized too.
Please, DO NOT hesitate to contact me. I patiently await your reply.
Thanks,
Cary
PS: Out of courtesy, I thought you should know something. I have had brain surgery as a child. I am BLIND #58059 registered MCforthe blind
and have enough difficulty. My greastest asset is my life, guide dog, mother and wife. They are good to me too. God Bless.
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Open Question: Anyone heard of Just Retirement?
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My in-laws are about to retire and have been recommended an annuity from Just Retirement by their broker. They reckon they will get more money because my father-in-law has had bowel cancer. Is this right? Has anyone heard of this company or would they be better sticking with another company or a bank?
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Open Question: What is the present value of an annuity?
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What is the present value of an annuity that provides $25 per year for 20 years at a discount of 3%? Please show work.
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Open Question: What is BOT (Annuity)? What is DBFO?
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This is connected with road construction
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Open Question: Compute the amount of cash that was received when bonds were issued?
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A $700,000, 20-year, 14% bond issue was sold to yield 12%. Interest was payable annually. Actuarial information for 20 periods follows:
12% 14%
Amount of 1 9.646 13.743
Present value of 1 .104 .073
Amount of annuity of 1 72.052 91.025
Present value of annuity of 1 7.469 6.623
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Open Question: what is the value of an annuity due at the end of 15 years ?
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what is the value of an annuity due at the end of 15 years of quarterly deposits of$2000.00 with terms of 8% compounded quarterly?
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Open Question: The cashier asked me, "do you want annuity or cash?" I said, cash. Can I change my mind?
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If I win the Mega Millions lottery then am I allowed to change my mind and request annuity?
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Open Question: please help me revise this letter im trying to get money out of my annuity?
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I am wrinting this letter in hope that you will be able to help us with our financial hardship. Back in august of 2008 my wife lost her business. This was shortly after we withdrew money from my anuity for my sons car that he needed for college. Therefore we were told we could not withdraw anymore money for another two years. In the mean time I was laid off in new jersey which made me eligible for another hardship which iw as in dier need for which I was unware of. We have made several attempts but noone was bale to help us and we were unware of this 60 mounth rule. We made several attempts calling wring letters ect, but noone informed us of this 60 month rule. In the mean time both of our homes are in daner of forclosure and both taxes are overdue and we have two children in college. So we are asking if you would please consider letting us withdraw money from my annuity so that we can save our houses and keep ou two children in school.
If we were informent when we withdrew the first time we would not be in this situation
Sincerely,
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Open Question: Comprehensive Problem: ?
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Mr. Rambo, President of Assault Weapons,Inc., was pleased to hear that he had three offers from major defense companies for his latest missile firing automatic ejector. He will use a discount rate of 12% to evaluate each offer.
Offer 1 : $500,000 now plus $120,000 from the end of year 6 through 15. Also, if the product goes over $50 million in cumulative sales by the end of year 15, he will receive an additional $1,500,000. Rambo thought there was a 75% probability this would happen.
Offer 2 : 25% of the buyer's gross margin for the next 4 years. The buyer in this case is Air Defense, Inc. (ADI). It's gross margin is 65%. Sales for year 1 are projected to be $1 million and then grow by 40% per year. This amount is paid today and is not discounted.
Offer 3 : A trust fund would be set up for the next 9 years. At the end of that period, Rambo would receive the proceeds (and discount them back to the present at 12%). The trust fund called for semiannual payments for the next 9 years of $80,000 ( a total of $160,000 per year). The payments would start immediately. Since the payments are coming at the beginning of each period instead of the end, this is an annuity due. To look up the future value of the annuity due in the tables, add 1 to n (18 + 1) and subtract 1 from the value in the table. Assume the annual interest rate on this annuity is 12% annually (6% semiannually). Determine the present value of the trust fund's final value.
Required: Find the present value of each of the 3 offers and then indicate which one has the highest present value.
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Open Question: When divorcing is it right for the person who didn't bring anything?
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I'm asking this question is it fair for a person who didn't being anything into the marriage to get half of your property, money and etc. I married a Cambodian 24 year old marriage lasted 3 years then she divorce me and was asking for half of everything I own of course she had me sell my house that I previously had before the marriage and bought a new one with her invested a lot and bought two cars for some reason she convince to sell and re buy everything think I know why is this fair she taking about 250,000 dollars from me in everything from investments and annuity that doesn't include a 2006 Lexus and so on any comments out there.
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Open Question: annuity is good for retiment?
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Open Question: Can someone explain how selling life insurance, annuities, etc. works?
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I'm just wondering how people get paid for selling insurance to companies? I know they get a commission or price per head, but do they get a certain amount every month, every year, lump sum, or what?
I'm heavily debating going for my PL 2-15 and Series 6 here in Florida, but want to know EXACTLY how things work before I start studying.
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Open Question: (Compound annuity) What is the accumulated sum of each of the following streams ofpayments?a. $500 a year for ?
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Open Question: present value for annuity values on any date ?
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find the present value to the nearest dollar on January 1 of an annuity which pays $2000 every six months for fiver years. The first payment is due on the next April 1 and the rate of interest is 9% convertible semiannually
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Open Question: Annuity values on any date finding k?
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Annuities X and Y provide the following payments
End of year Annuity X Annuity Y
1-10 1 K
11-20 2 0
21-30 1 K
Annuities X and Y have equal present values at an annual effective interest rate i such that v^10 =1/2 Determine K
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Open Question: Annuity due finding the amount of each withdrawal?
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a worker aged 40 wishes to accumulate a fund for retirement by depositing $1000 at the beginning of each year for 25 years. Starting at age 65 the worker plans to make 15 annual withdrawals at the beginning of each year. Assuming that all payments are certain to be made find the amount of each individual withdrawal starting at age 65 to the nearest dollar if the effective rate of interest is 8% during the first 25 years but only after 7% thereafter
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Open Question: Annuity immediate proving two functions are equal?
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show that
1/(1-v^10)= (1/s10)(s10 +1/i)
the s10 is the accumulated value of the annuity at this point in time
i couldn't write the symbol as i didn't know how to on here but I hope you get the idea.
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Open Question: What are the advantages and disadvantages of private annuities vs. self-canceling installment notes?
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Are there any major drawbacks to a private annuity sale? self-canceling installment notes?
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Open Question: Financial calculator - Annuity problem?
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How do I solve for the number of periods with an annuity on a financial calculator? (Which buttons to press)
Problem details: Guy wants to retire with $500,000 by investing $8,000 per year in the stock market (starting at the end of this year). 15% average annual return. How long to save money before retirement?
I had:
FV = 500,000
Interest Rate = 15
Payment = 8,000
0 N(15%, PMT 8,000, PV 0)
...this keeps coming out 0.. which makes sense from the formula (cause PV is 0). I now know the answer is 17 years from guessing, but I need to know how to do this on a calculator.
Any help is appreciated. Thank you.
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Open Question: Homework question about annuities?
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If sid and nancy want to retire with $6,000 monthly income for 30 years and have 40 years to save with a compounding interest rate of 9%, how much would they have to save monthly? I asked this last night and I just now need to know how to discount the rate back forty years after finding pv for the thirty years. Thanks
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Open Question: struggling with annuity rates?
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for a payment of $80,000 at age 65, the firm will pay the retiring professor $600 a month until death. if the professor's remaining life expentancy is 20 yrs what is the monthtly rate on this annuity? what is the effective annual rate
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Resolved Question: PLEASE!!! HELP STATISTICS!!!?
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STAT questions!!!! 10 pts?
1.) Find the exact interest. Use 365 days in a year, and use the exact number of days in a month.
$1300 at 10% for 114 days
2.) Use an amortization table to solve the problem. The monthly payments on a $78,000 loan at 11% annual interest are $743.35. How much of the first monthly payment will go toward interest.
3.) Find the payment necessary to amortize the loan.
$12,100; 12% compounded monthly; 48 monthly payments
4.) Find the actual interest rate paid on the simple di. note.
$4800; discount rate 5%; length of loan 9 months
5.) Fin the present value of the ordinary annuity
Payments of $490 made annually for 13 years at 6% compounded annually
6.) Find the present value of the future amount. Assume 365 days in a year.
$15000 for 110 days; money earns 8%
7.)Find the proceeds. Assume 365 days in a year.
$20,000; discount rate 7%; length of loan 4 months
8.) Find the amount that should be invested now to accumulate the following amount, if the money is compounded as indicated.
$2500 at 7% compounded annually fo 12 years
9.) Find the amount that should be invested now to accumulate the following amount, if the money is compounded as indicated.
$6600 at 6% compounded quarterly for 4 years
10.) Find the present value of the ordinary annuity
Payments of $89 made quarterly for 10 years at 8% compounded quarterly.
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Voting Question: Homework question about annuity?
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If sid and nancy want to retire with $6,000 monthly income for 30 years and have 40 years to save with a compounding interest rate of 9%, how much would they have to save monthly?
Another quick question how do you discount it back?
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Resolved Question: Find the value of an annuity math problem?
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Find the value of an annuity in which $1,100 is deposited at the end of each year for 5 years, at an interest rate of 11.5% compounded annually.
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Resolved Question: Annuities PLEASE HELP ME?
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Find the future value of $540.00 deposited at the end of every month for 7½ years if interest is compounded at 5.6% monthly.
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Voting Question: present value of an annuity?
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What is the present value of an ordinary annuity of 22 monthly payments of $100 into an account paying 6.4% interest per year compounded monthly?
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Resolved Question: Annuities Question - Help!?
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A man wants to accumulate a $200,000 retirement fund. He made the first
deposit on March 1, 1994, and his plan calls for the last deposit to be made
on September 1, 2015. Find the size of each deposit if:
a) He makes the deposits semi-annually in a fund that pays 12.5% per annum compounded semi-annually.
I ended up with $18071.32, can I get a confirmation on my answer?
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Voting Question: Amortization Schedule?
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Assume you bought something on 12/1/08 for $25,000. You made a down payment of 20% and financed remainder of cost. Arranging equal monthly payments for the next 2 years at annual rate of 9%. First payment will be made 1/1/09.
I came up with,
the present value of 20,000 since 20% of 25,000 = 5,000 (already paid)
Interest rate = 9% annually so monthly = .75%
Periods = 2 years so monthly = 24
I'm not sure if the present value is 20,000
I came up with the amortization schedule but I'm not completely sure it's right. Could someone tell me if I'm doing it right using the present value of an ordinary annuity =/ I keep getting the sense that I'm doing it backwards.
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Resolved Question: finance question help?
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Assume an initial deposit of $5000 at the end of the first year and deposits of $1200, $1500, $1000, and $1200 at the end of each year following the first for the next 4 years.
What is the PRESENT value of this annuity assuming the interest rate is 7.42%?
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Resolved Question: annuity immediate question to find the down payment ?
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the cash price of a new automobile is $10,000. the purchaser is willing to finance the car at 18% convertible monthly and to make payments of $250 at the end of each month for four years. Find the down payment which will be necessary.
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Voting Question: Could I lose annuity payments?
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Hello. I receive an annuity check every month from Genworth Financial, due to the loss of a parent when I was young. It's supposedly guaranteed until 2019 - "or so long as the measuring life lives thereafter." With an annual 3% COLA. Right now it's a bit over $1900/month, and needless to say I'd be in some trouble if these payments were to stop.
I don't invest in stocks, but with the financial crisis going on I've kept an eye on Genworth over the last few months. In September the company (GNW) was in the $15/share range. In October it dropped to around $5/share. Now I check today and GNW is trading around $1.
Is this anything for me to worry about? I'd think there would be laws in place that would force the company to stick to the contract, but I don't know if they could go bankrupt and leave policy holders like myself without our payments. They have to pay one way or another, don't they?
Thanks for any insights!
http://finance.yahoo.com/q?s=gnw
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Resolved Question: Converting NPV into an equivalent annuity? (1)?
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A project has an NPV of $200 and is expected to last 10 years. Using a required rate of return of 6.00%, convert the NPV into an equivalent annuity.
I know the answer is 27.17. I am interested in HOW to attain this number. Is there a way to do it on a graphic calculator as well?
Thanks for the help!
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Voting Question: Should I Pay Off My Mortgage?
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The recent upheaval in financial markets has caused me to ask the above question.
I'm a retired 61 yr old single male with no debts and 50k in the bank.
I collect a monthly annuity of 1.5k and anticipate monthly SS earnings of roughly the same amount a yr. from now.
I have a mortgage of 145K (home is worth ~ 200k) and 401ks totaling ~$600000 (ytd 401ks have returned ~ +4.2).
Does it make sense to pull enough money out to pay off my mortgage?
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Resolved Question: Filing IRS if money was received as beneficiary of annuity?
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My mom had a non qualified tax deferred annuity in which I was one of the beneficiaries. Upon her passing this year, I received the check. I live overseas and my income is very small so I don't report to IRS. However, with this money I received, I'm not sure if it is considered income or what and if I will have to file next year. I need to know now because other issues elsewhere depend on whether or not this is income. I tried calling the IRS but lines are always busy. Thank you for your help.
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Resolved Question: Calculating Annuity Future Values?
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You are planning to make annual deposits of $3,000 into a retirement account that pays 10 percent interest compounded monthly. If your first deposit will be made one year from now, How much is your retirement account will be worth in 30 years? Please show me how to work it out with 10% interest compounded monthly and 3000 per YEAR PMT
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Resolved Question: What preparations should people take for an Obama Presidency?
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I have a choice between a traditional annuity and self managed retirement plan; given the likelihood that his policies will result in more economic downturn, I'm sticking with the annuity.
I'm paying off all credit debt and refinancing the loan on my rental property to a fixed rate, anticipating that loan rates and inflation will rise.
I'm putting my 401K into bond funds to protect against further market downturns.
There's not much I can do about the rising tax rates. Do you have any other suggestions?
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Voting Question: Present value of an annuity problem?
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(Present value of an annuity) What is the present value of the following annuities?
a. $2,500 a year for 10 years discounted back to the present at 7 percent
b. $70 a year for 3 years discounted back to the present at 3 percent
c. $280 a year for 7 years discounted back to the present at 6 percent
d. $500 a year for 10 years discounted back to the present at 10 percent
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Resolved Question: Compound annuity problem?
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(Compound annuity) What is the accumulated sum of each of the following streams of
payments?
a. $500 a year for 10 years compounded annually at 5 percent
b. $100 a year for 5 years compounded annually at 10 percent
c. $35 a year for 7 years compounded annually at 7 percent
d. $25 a year for 3 years compounded annually at 2 percent
Thank you!
This is not homework, I am making a problem for someone else and just checking to see if others get the same answers, please don't come on yahooanswers if your not going to answer.
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Voting Question: IRA's, Variable annuities and everything else: What do I do?
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I'm in the middle of a 401K transfer, via QDRO, after a divorce. This is a large sum of money and I am so clueless about it. I got connected with a FA who is turning out to be a slimeball and set up a variable annuity for me.
I have an appointment to talk to another FA, that is a family friend. Over dinner I asked him about variable annuities and told him some of the things the other FA said. He laughed.
This is pre-tax money and I need to invest it as such. 401K is not an option. I try to educate myself, but everything is so confusing to me. The variable annuity seems risky with high fees. But with the market the way it is...I just don't know.
Any advice appreciated.
I'm not committed to the variable annuity. Why are they so "not good."
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Resolved Question: I just inherited 21 millions dollars how should i invest my money so i never go broke. I figured i should put ?
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I figured i should put half my money in a insured cd and the rest in a insured annuity income account what do you guys think isthe best way to invest without ever loosing any money
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Voting Question: what is an annuity fund?
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Voting Question: (Present value of an annuity) What is the present value of the following annuities?
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what is the formula to figure this out?
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Resolved Question: Suze Orman listed 4 "stay away froms" (8/9 & 11/1/08). Two were bond mutual fund & variable annuity. Last two?
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The first airing I believe was 8/9/08, and the re-run just aired 11/1/08. I haven't been able to find the 3rd and 4th items anywhere online. Do her show transcripts exist anywhere, or does anyone have the info? Thanks in advance.
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Resolved Question: Other than early surrender, is it possible to loose money on "equity indexed annuity"?
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Resolved Question: Help with a finance question?
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If annuity costs $200,000 which yields 7% annually for 5 years, how much cash can an individual with-drawl each year such that the principal is consumed at the end of the time period?
I am having a hard time with this class because I am taking this online and there is really no explanation for figuring these types of problems. This is an example question that will be on our test. What are the steps in figuring this? Any help is appreciated, thank you!
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Voting Question: Math annuities and Future value and present value ?
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Andrea is about to retire; owns her own home in good repair, has just brought a new car and is free of debt. She estimates that she needs $250/week to live confortably for the next 20 years. If annuities are paying 14.5% interest, how much will it cost her to buy a suitable annuity. The answer from an annuity due is $84 938.30 if anyone can show me step by step how this is done it would be much appreciated
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Resolved Question: Should I sign up for an annuity?
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Okay, here's the deal. I won a lawsuit and my lawyer wants to take almost half of the money and set it up on a fixed annuity. I'm young (24) and I don't think I should do it. What do you think? Please honest answers!
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Resolved Question: Did I do this Future Value of Annuity problem right for financial accounting?
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I'm wondering if I did this right.
The problem states: "Simmons Company has just purchased equipment that requires annual payments of $10,000 to be paid at the end of each of the next 4 years. The appropriate interest rate is 16%. What is the cost of the equipment."
For my answer I took $10,000 x 5.066 = $50,660
I got the 5.066 from the Future Value of Annuity Table for 4 years and 16%....I feel like that was too simple and that I did something wrong though. Could someone check my work?
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Resolved Question: Financial Accounting Help!! Calculating Present and Future Value of Money!!?
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The problem states: "Kim Stanley invests $150,720 now, for which she will receive $20,000 per year, the first beginning one year from now. Kim will earn 8% on her investment. How many annual payments will Kim receive?"
It's a Time Value Money problem and I know i'm supposed to use either the future value annuity table, or present value annuity table, but i have no idea how to set this problem up. Please HELP!!
What equation did you use though, all you did was define the variables?
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Resolved Question: Math Help Please How Is This Done?
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A balance A, after n annual payments of P dollars have been made into an annuity earning an annual a percentage rate of r compounded annually, is given by A= P(1+r) + P(1+r)^2+......+ P(1+r)^n
Rewrite the formula by completing the factorization A= P(1+r)( )
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