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  • What do I need to know before transferring investments?
  • January 27, 2014
  • how to transfer investmentsBy LifeQuotes.com

    From life insurance to pension plans to annuities, there are many options available for workers trying to save for retirement.

    Keeping these investments intact while switching jobs, however, can sometimes be tricky, according to a report by FOX Business News. Experts warn against cashing out a 401(k) because individuals under the age 59 1/2 will be slapped with an early withdrawal penalty in addition to taxes.

    Rolling it into an individual retirement account can help a consumer avoid these penalties, while investing in an annuity is one way to guarantee income in the future. Variable and fixed annuities include different growth opportunities, with the former responding directly to market conditions. Some annuities, however, offer peace of mind not available through pension plans.

    “The one thing that this does for you is provide a guarantee that you can’t get anywhere else,” said Jeff Rose, a certified financial planner. “For some people, they don’t care how much they have to pay – they want a guarantee.”

    A report by the American Academy of Actuaries pointed to lifetime annuities as a way to prevent against longevity risk, which occurs when consumers outlive their retirement savings. And they are currently calling upon Congress to commit to addressing the security of federal programs such as Medicare and Social Security in 2014.

    “The president is seeking to make 2014 a ‘year of action,’ and there are few matters in Washington more often missing from everyone’s to-do list than federal entitlement reforms. The American Academy of Actuaries is the U.S. actuarial profession’s voice for serving the public and we are highlighting a fundamental choice: Take action to address solvency and sustainability issues now, or delay action and face a dwindling number of available policy options later — options that may have a more severe impact on beneficiaries and taxpayers,” says Tom Terry, president of the Academy. “While the scope of, and possible solutions to, the financial challenges vary according to program, a basic fact remains that challenges will grow more unmanageable the longer they remain unattended.”

    The American Academy of Actuaries is a 17,500-member professional association whose mission is to serve the public and the U.S. actuarial profession. The Academy assists public policymakers on all levels by providing leadership, objective expertise, and actuarial advice on risk and financial security issues. The Academy also sets qualification, practice, and professionalism standards for actuaries in the United States.

  • Category: Life Insurance, Spending, Videos

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