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-1
votes
1answer
85 views

Solving for mortgage payment amount and its deduction on the total principal?

This question is stumping me. "Jane has taken out a 20-year, $150,000 mortgage with monthly payments (made at the end of each month) at a stated mortgage rate of 6.8% per year compounded ...
3
votes
1answer
141 views

What is the difference between a perpetuity and an annuity?

Both an annuity and a perpetuity pay a stream of income on a periodic basis. What is the difference from the beneficiary's point of view? Possible differences might be: an annuity isn't payable ...
1
vote
1answer
83 views

Undestanding the new UK Pension laws

I have this scenario and I am having problems understanding how this scenario fits into the upcoming pension laws (mentioned in the latest budget). A man who is 66 now and 67 on the 8.11.14 has ...
1
vote
2answers
140 views

Calculating accumulated value of an annuity with changing payments?

In a series of 40 payments the first 10 payments are 10 each, the second 10 payments are 20 each, the third 10 payments are 30 each, and the final 10 payments are 40 each. The payments are equally ...
2
votes
2answers
71 views

I need help understanding inheritance annuities

I am getting an inheritance in the form of an annuity. Am I better off with the annuity or a lump sum. Can I change it to a lump sum? Can I ask for a once a year instead of a monthly annuity? Can I ...
3
votes
2answers
207 views

Is accepting a pension cashout (either on retirement or termination of employment) better than an annuity?

After the vesting period, all funds my employer contributes to the pension fund on my behalf are listed as being "mine", and upon end of employment (retirement, voluntary termination, etc), I have the ...
13
votes
2answers
500 views

Can someone explain the different kinds of annuities?

So in my retirement and personal investing I have some stocks (very little), a Roth IRA, a Roth 401K and a Traditional 401K (later two are from work and I split things right now). At my age and ...
3
votes
2answers
2k views

Lump sum annuity distribution — do I owe estate tax?

I recently inherited an annuity, and I am considering taking a lump sum distribution. I thought I had the income tax situation sussed out, but then I stumbled across mention of a possible estate tax. ...
7
votes
3answers
140 views

What are the contents of fixed annuities?

This is a personal finance question as annuities are only as good as the company that insures them. Annuities from reputable companies often yield 7% or more on paper before any fees, taxes or ...
0
votes
1answer
66 views

How to calculate what i need to pay each month in a annuity type of loan?

Good or bad, how do get to the same number as the bank web calculator do with the following data: Money loaned: 2 500 000 Interest: 3.5% Effective interest: 3.6% Fee (each payment): 50 Number of ...
2
votes
2answers
3k views

What is the equation for an inflation adjusted annuity held in perpetuity?

What is the equation relating an initial investment, a fixed rate of return, an inflation rate, and a perpetual payment adjusted for that inflation rate?
1
vote
1answer
456 views

How to calculate lump sum required to generate desired monthly income?

Suppose my monthly expenses are $500. I want to ask a charity foundation to finance my scientific research by one-time payment intended to cover all my monthly expenses during my lifetime. How to ...
0
votes
2answers
786 views

How much is my annuity worth? Calculating present (commuted) value of an annuity or pension?

I have a lifetime annuity which adjusts with cost of living increases in my state. Is it possible to compute the present value of this annuity? If so, how might I go about that? Perhaps I am ...
2
votes
2answers
1k views

Can I rollover an “individual retirement annuity” to an IRA?

A few years ago, my wife inherited the assets from some sort of retirement account from a deceased relative. At the time, we were less investment-literate than today, so with the aid of a financial ...
8
votes
4answers
317 views

How to evaluate an annuity

My mother wants to gift annuities for me and each of my siblings. Great...uh, maybe. I'm concerned that she may be purchasing some expensive crappy investment she doesn't need to achieve what she ...
0
votes
2answers
280 views

mortgage math problem

There's a 30yr home loan for $100,000 at 7%. After 15 years the loan is paid off in order to refinance at a lower rate. The loan has a prepayment penalty of six months interest of 80% of the ...
10
votes
3answers
460 views

Is it worth having a pension?

I know this could be a duplicate of other questions here, but I think I have a different take on it which may be of interest to others in a similar frame of mind. Some background I'm self-employed ...
8
votes
4answers
381 views

Who buys variable annuities?

Last year the people making my taxes suggested a variable annuity instead of my traditional IRA. This variable annuity was supposed to guarantee 8% return year after year with no exception or market ...