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Buy Now or Buy Later?

Good afternoon everyone,

We are often asked about the best age to buy an annuity and today we are going to give you some information which should help you to decide.

People want to receive the highest income and to meet that request we give you quotes from all the companies, along with various guarantee periods.

But timing is also important; do we buy now or later? If we buy now, our monthly income will be less but will waiting improve our position? This is answered by comparing a “DO-IT-NOW” quote with a “DO-IT-LATER” quote. If it takes too many years to make up the forsaken income, you have your answer.

BUT WHAT IF INTEREST RATES INCREASE; WON’T THAT MAKE A DIFFERENCE?

Well consider this. If interest rates across the yield curve increased (say by 2%) the impact on annuity incomes would be more significant for younger ages than for older ages. Considering the time value of money, a company will have the ability to earn higher yields for the younger clients for longer periods of time. For older clients the amount of time is shorter to take advantage of the higher yields.

If a company sells an annuity to a 80 year old, on average it doesn’t expect to pay income for that long a period. There is less time to take advantage of a possible increase in interest rates, especially when you consider most of the client’s deposit is being paid back faster than to a younger person.

For these older clients, mortality credits play a big role in the value they receive from an annuity, For younger clients it is more a combination of interest rates and mortality credits that provide the annuity value.

WILL INTEREST RATES INCREASE?

Here is a link to the Financial Post with information from Statistics Canada on that exact question

Our position remains the same. Only the RRSP holder and spouse can take advantage of the continuing income tax protection. When the RRSP holder or spouse passes away, there is no more tax protection.

And in most cases these days, a non registered annuity, is a replacement for a defined benefit pension.

But a DO-IT-NOW and a DO-IT-LATER quote will answer that question for you. In this context; Waiting is hoping!

>> GET A BUY NOW or BUY LATER QUOTE  <<

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My Comments to: Seven smart things the wealthy do with their money

Ms Wright isolates some great measures in her article “SEVEN SMART THINGS THE WEALTHY DO WITH THEIR MONEY.

None of them is complicated or in any way difficult. They are just simple-to-do everyday things. You don’t have to be “somebody” to follow this simple money management plan.

And as we are now at tax time,her point about annuities is especially relevant. Non registered annuities, whether income is taken now or delayed, uses your age or ages, to guarantee a lifetime income. Either registered or non registered annuities can be prescribed, to give you peace of mind with the same monthly payment.

And the last point about hiding money from yourself is also important. If funds are automatically diverted from your account, you’ll not miss them until you need them.

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From Ottawa, Metro: Consider annuities for a secure retirement income.

An interesting article from Sun Life explaining the virtue of a life annuity as guaranteed income.

But there should be no set arbitrary amount or percentage to invest. We live in very volatile times, politically and financially, and people are scared and worried about the future. The US which dominates our business landscape, is locked in an election where the majority of people hope that no one wins!

If you have sufficient guaranteed income from an employer and the government and feel you can handle it,jump into a RRIF with investment funds. But don’t put money in there that you will possibly need to top up your income down the road.

When money, and therefore income, is lost at the latter stages of your life, you don’t have the time to replace it.

Read full article from Ottawa Metro by Talbot Boggs – Consider annuities for a secure retirement income.

consider annuities for a retirement income

Use our Annuity Calculator to instantly calculate your annuity income online. To find out approximately how much Guaranteed Income For Life you can receive.

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Annuity Broker: Canadian Independent Annuity Broker

Talk to an independent annuity broker who can advise you on Canadian Annuities and how they can fit into your retirement plan.

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Ivon T Hughes annuity broker since 1972.

Ivon T. Hughes is a Canadian annuity broker who represents all the annuity companies in Canada and has been in business since 1972. Call Ivon toll free in Canada  1-877-842-3863 or 514-842-9001 from U.S and internationally.

Why Use an Independent Annuity Broker?

Annuity policies can only be purchased from an insurance agent or broker.  It also makes more sense to use an independent annuity broker to do the shopping and the research for you. In addition, insurance agents only represent one company and are tied to selling their annuity products.

An independent annuity broker can get you annuity rates from all the life insurance companies. The following is a list of Canadian insurance companies that sell life annuities in Canada.

An Annuity Broker’s List of Companies Should Consist of the following:

1. BMO Insurance
2. Canada Life Assurance Company
3. Desjardins Financial Security
4. Empire Life Insurance
5. Equitable Life
6. Great-West Life
7. Industrial Alliance
8. ivari (formerly Transamerica)
9. La Capitale
10. Manulife Financial
11. RBC Insurance
12. Standard Life (now Manulife)
13. Sun Life Financial

Ask Ivon T Hughes to find you the best annuity deal for you. We’ll shop the market and send you all the annuity rates. Furthermore, the services provided are free of charge and you’re under no obligation to buy any of the quotes you receive.

If you would like more information on annuities please use our contact us page and request a call from Ivon T Hughes. In addition, you can also complete our online annuity quote form and we’ll get back to with an annuity illustration.

Advertising Newsprint: 1986 The Montreal Gazette

Independent Annuity Broker Ivon T. Hughes
Ivon T Hughes is an independent annuity broker.
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Countdown to January 1, 2017 – When Prescribed Annuities Tax Changes Take Effect

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To beat the clock if you want to avoid the 2017 tax rule changes for prescribed non-registered annuity payments, you need to buy before 2017 rolls around. The higher taxable portion will result in higher taxation, so you need to buy now.

What is actually happening is that the federal government tax changes, made under the income tax act, are increasing due to the discarding of the 1971 life expectancy tables. There will be grandfathering for those who do not want to commence payments until 2017,  so it is apparent there are great benefits in annuitizing before January 1st, 2017.

Act now and get a prescribed annuity quote.

 

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Annuity Deadline Approaching for Registered & Non-Registered Annuities

We are fast approaching a deadline for any annuity business you want to do this year.

Annuity Deadline January 1, 2017

While the official cutoff date for annuities to be issued by January 1st, 2017  the practical date is a lot earlier.

All the people who have turned 71 this year and have not bought a RRIF or a registered annuity, turn up in the tens of thousands at year end. You know who you are; you’re waiting for rates to go up or for the stock market to settle down.

Neither will happen. And for your peace of mind you don’t need to worry whether your money will be clogged up and not transferred in time for you to avoid paying tax on all the capital. It has happened and it will happen again to those who do not properly plan.

And on top of all that, the same applies this year to buyers of non-registered prescribed annuities who must annuitize before January 1, 2017  to avoid increased taxation, even if starting the income later.

So this blog is a shot across the bow. If you have any intention of getting an annuity, the time is now. Complete our annuity quote form and we’ll provide a personal annuity illustration.

Thank you,

Ivon T Hughes
The Hughes Trustco Group
Toll free: 877-842-3863
Website: LifeAnnuities.com

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Buying an annuity? You don’t have to do it alone.

Hi,

Do you know the best way to make sure that you receive the highest monthly annuity payment?

Don’t do it alone!

That’s right. You don’t have to go at it by yourself and guess what to do!

We have access to ALL the annuity companies and have made them part of our Annuity Team here, so that we can help you get the highest possible monthly income.

You can call me toll free at 1-877-842-3863 to answer your questions before you submit any information.

On your call, we will take a look at your situation, and your lifestyle and advise you on what you could do.

On top of our experience with hundreds of clients, we have answered lots of annuity questions.

Everything from grandparents, retirees, RRSP’ers, charities and those with shortened life expectancy have consulted us without charge.

Which means we can very quickly take a look at your situation and tell you what should help you, your family and what the plan of attack should be.

Call me at 1-877-842-3863 to talk about your situation.

One of the key reasons that our clients are happy is because we were able to quickly give them some pointers on which direction to take and get them the right annuity product to solve the income problem.

If you are wondering what to do and what we can do for you, the best way to get started is to fill out our  annuity form or call us at 1-877-842-3863.

Cheers,
Ivon

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Don’t Forget About An Impaired Life Annuity

If you or your partner have a serious illness, don’t forget to ask for a health rating for your life annuity.
A life annuity,available where life expectancy is impaired, recently issued for a client on a joint basis, increased their income by 5%.
That may not sound much but when you consider that the healthy party was a female AND 12 years younger,you can realize that they were more than pleased.One company issued a rating of 5+ years and a second company rated the couple at 10+ years.The contract however was issued by the 5+ company as it had better standard rates to commence with.
Depending on the age(s) concerned and the illness involved, this approach should not be overlooked when doing retirement planning.
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My comments on “Buying a prescribed annuity?” by Rob Carrick of the Globe and Mail

Rob Carrick has written another helpful article on prescribed annuities, this time specifically on non-registered annuities.

Yes, it’s come time to make up your mind on whether you want your retirement savings to be both guaranteed and remunerative, while paying less taxes.

A non-registered annuity increases your monthly income and reduces your income tax on that capital. If you are concerned about market volatility and low interest rates which could guarantee losing not only capital but income,then this is the way to go. Rob introduces several examples but as usual, you need to get your own figures to see if this product is for you and your family.