Bear Market

November 7, 2008

A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, which contributes to further pessimism. Although figures can vary, for many, a downturn of 20% or more in multiple broad market indexes, such as the Dow Jones Industrial Average (DJIA) or Standard & Poor’s 500 Index (S&P 500), over at least a two-month period, is considered an entry into a bear market.

A bear market should not be confused with a correction, which is a short-term trend that has duration of less than two months. While corrections are often a great place for a value investor to find an entry point, bear markets rarely provide great entry points, as timing the bottom is very difficult to do. Fighting back can be extremely dangerous because it is quite difficult for an investor to make stellar gains during a bear market unless he or she is a short seller.

Mode of receiving payments form annuity

November 4, 2008

Annuity Certain the stipulated annuity is paid for a fixed number of years. The annuity payments come to an end at the end of that period, irrespective of how much longer you may live.

In deferred annuities the premiums paid into such annuities may be deducted from one’s taxable income at the time of payment, its quite advantageous, especially to tax payers in higher tax brackets.

Life annuity guarantees you a specified amount of income for your life. If death happened then the annuity payments cease but your investment is refunded to your estate.

A guaranteed minimum annuity, on the other hand, not only provides you with a specified income for your lifetime but, in addition guarantees that your estate will receive payments for a certain minimum number of years, say ten years, even if you should die earlier

Annuity Investment

November 1, 2008

My previous post I have defined that “what is annuity investment?” But there is a question arises that who should buy this plan, and its beneficial plan or not.

The answer for the question that “who should buy this plan?” then I would give the answer that any individual who have been retiring from his service and has received a large amount from his Provident Funds, can invest the amount in a pension plan or annuity fund available in the market since it is the most satisfactory method of providing a safe and secured income for the rest of his life.

The benefit of this plan is that, by buying an annuity or a pension plan the annuitant receives guaranteed income throughout his life. The person receives lump sum benefits for the annuitant’s estate in addition to the payments during the annuitant’s life time. And also tax benefits are available with this plan