Brian Poncelet Talks About How Annuities Work

The variety of contract types complicates matters for those who are not insurance specialists or seasoned investors.

Mississauga, ON, Canada - September 16, 2019 /MarketersMedia/ —

Detailed planning and careful investment is needed in order to fully enjoy the perfect retirement life. Brian Poncelet, an Ontario based financial planning expert, explains that a steady income of cash comes from several factors working together, like opting for the best products and strategies. “Many people considering their options for retirement income are introduced to the idea of annuities, but while the concept has existed since the days of the Roman Empire, it seems investors often struggle to grasp the specifics of the modern-day version of this product,” says Poncelet, who has written on the matter and continues referencing his clients to his article to this day.

“Strictly speaking, annuities are not investments although they are typically described as such in marketing materials,” Brian Poncelet explains. Canada’s Financial Consumer Agency provides the following definition, “An annuity is a financial product sold by an annuity provider, such as a life insurance company, that will pay you guaranteed regular income.” The payments comprise both principal and interest, the latter being taxable although the amount due is deferred because the tax is spread over the life of the annuity. The chief attraction of this product is the guarantee it offers: the money will keep coming for as long as the policy buyer lives, while there is no such certainty with income derived from Guaranteed Investment Certificates (GICs), stocks, or mutual funds, Brian Poncelet points out. The factors that determine the annuity income are interest rates, gender (women have longer life expectancy), and the number of years an annuitant wants the payments guaranteed.

While the majority of people can easily grasp the overall advantages, the variety of contract types complicates matters for those who are not insurance specialists or seasoned investors. The choice should be guided by two key considerations: whether the annuity should transfer to a beneficiary after the buyer’s death, or the policyholder wants regular payments. In the latter case, the parties to the contract can arrange for income that increases or decreases at certain intervals. With a life annuity, a person is guaranteed income until they pass away, with the payments typically ceasing after death. However, the contract can include provisions that ensure continued reimbursement to a beneficiary or the annuitant’s estate, but the additional features will reduce the amount, Brian Poncelet explains. In the case of a term-certain annuity, income payments are guaranteed for a fixed period of time, meaning that a beneficiary or an estate will be entitled to the remainder of the funds should the buyer die before the term expires. Insurance companies also offer the so-called variable annuity, where a portion of the income is determined by the performance of an investment made on behalf of the buyer by the annuity provider. Therefore, this type carries an element of risk because the capital markets fluctuate, so the rates of return can affect the income. Given the intricacies of this financial product and the numerous features that can be incorporated additionally to maximize outcomes, potential annuitants are strongly advised to seek the help of experienced professionals.

Brian Poncelet is a Canada-based insurance expert and independent certified financial planner (CFP) with over 25 years of industry experience. Working alongside company leaders, managers, and self-employed individuals, he offers advice and support that allow them to improve cash flow efficiency, minimize taxes, implement protection strategies, and access retirement funding options. As a third-party administrator, he provides alternatives to traditional employee benefits arrangements, including healthcare spending, accounts, and administration. Brian Poncelet is focused on developing comprehensive plans and making recommendations that ensure his clients achieve the best outcomes and value.

Brian Poncelet - Insurance Expert and Certified Financial Planner: http://brianponceletnews.com

Brian Poncelet (@Brian_Poncelet) - Twitter: https://twitter.com/brian_poncelet

Brian Poncelet, CFP - Certified Financial Planner - Plan your future: https://ca.linkedin.com/in/brianponcelet

Contact Info:
Name: PYF
Email: Send Email
Organization: PlanYourFuture Brian Poncelet, CFP Financial Planner
Website: http://www.planyourfuture.me

Source URL: https://marketersmedia.com/brian-poncelet-talks-about-how-annuities-work/88919162

Source: MarketersMedia

Release ID: 88919162

Latest News

Globes carpet kicks off with big sleeves and shades of pink

Feb 26, 2020

NEW YORK — Cynthia Erivo and Greta Gerwig rocked sparkling chokers as the Golden Globes red carpet kicked off Sunday, with Erivo in a hand-beaded custom Thom Browne gown and Gerwig in black and cream. Both went off-shoulder for the big night in Beverly Hills, California. Erivo, the “Harriet” star and fashion standout, said her dress includes designs of her favorite flower, the peony, at the hem and in her lining. The short-sleeve gown, Erivo told E!, took 800 hours. A huge blue stone dropped from her short necklace. Shades of pink had an early trend moment on Kirsten Dunst...

Judge: No slander in Alec Baldwin's comments on parking spat

Feb 26, 2020

NEW YORK — Alec Baldwin didn't slander a man in interviews about a parking dispute that turned physical, a judge has ruled as dueling lawsuits between the actor and the other driver continue. Baldwin's remarks — including claims that Wojciech Cieszkowski's driving was “really fast,” “really aggressive” and made the actor think his wife and son were about to be run over — were "hyperbole" and "rhetorical illustrations," Manhattan judge David B. Cohen wrote Thursday. “They are words of frustration with someone's driving,” not accusations that amount to slander, Cohen wrote. He tossed out Cieszkowski's slander claim, but his assault...

After son's death, Craig Morgan finds God's purpose in song

Feb 26, 2020

NASHVILLE, Tenn. — The last evening that country singer Craig Morgan spent with his 19-year-old son, Jerry, was during one of Morgan's performances at Grand Ole Opry three years ago. "The last pictures I have of us together is on that stage," Morgan, 55, said backstage at the Opry House this week. "So this is a very special place. It was anyway before, but now it has additional meaning, knowing this is where we hung out together." His son, Jerry, who was home visiting from college, died in a drowning accident on Kentucky Lake in July 2016. Three years later,...

Felicity Huffman released 11 days into 14-day prison term

Feb 26, 2020

SAN FRANCISCO — Actress Felicity Huffman was released Friday morning from a federal prison in California on the 11th day of a 14-day sentence for her role in the college admissions scandal, authorities said. The "Desperate Housewives" star was released from the low-security prison for women on Friday morning because under prison policy, inmates scheduled for weekend release are let out on Friday, the U.S. Bureau of Prisons said. Her husband, actor William H. Macy, dropped off Huffman — aka inmate No. 77806-112 — at the Federal Correctional Institution, Dublin in the San Francisco Bay Area on Oct. 15. A...

Nicki Minaj indicates she's now a married woman

Feb 26, 2020

NEW YORK — Ms. Minaj wants you to know she's now officially Mrs. Petty. Minaj — who has dated Kenneth Petty for about a year — seems to confirm her marriage with a video on Instagram on Monday that shows off Mr. and Mrs. coffee mugs and bride and groom hats. The rapper also changed her Twitter name to Mrs. Petty. Her caption read: "Onika Tanya Maraj-Petty 10-21-19." Minaj's real name is Onika Maraj. She did not offer additional information. The couple first dated as teenagers and reunited last year. She announced plans over the summer to wed. She has...

About Us

E-Stardom is the exclusive online news network for breaking entertainment news. We bring to you the premium coverage and fashion tips to your favorite celebrity style. Get your daily celebrity news fix only here in E-Stardom.

Contact us: sales[at]e-stardom.com

Subscribe Now!