Ja Rule planning for his family's finances

June 21, 2011 It has been 4 years since Ja Rule was arrested for a carrying an illegal gun in his car after a show at the Beacon Theatre in New York City. Now he is in prison for the next two years to serve out the sentence he received on March 9. He was supposed to be start his prison sentence that day, but the sentencing judge gave him an extra month of furlough in order to take care of the $1.1 million he owed in back federal taxes.

Ja Rule's tax problems.
The back taxes were a result of not paying taxes / filing tax returns from 2004-2008. This led to tax evasion charges that were addressed at a second hearing in March 2011. At that hearing Ja Rule admitted to the judge that he had been smoking marijuana the night before the hearing, but that he wasn't under the influence of drugs the day of the hearing, was able to proceed, and fully understood the charges. Three charges of tax evasion were brought against him, while 2 others were dropped. Sentencing is still pending.

How will Ja Rule support his family?
With Ja Rule gone how will his family pay the bills? His wife, Aisha, said that isn't going to be a problem. She told reporters that Ja took care of their finances before turning himself over on June 8 to begin his prison term. Aisha didn't specify how Ja had arranged for the family finances to be taken care of for the next two years, but she seemed confident everything would work out fine. So how can you ensure your family has a regular income in your absence? One way is to buy an annuity contract.

Annuities - how you can ensure regular income for your loved ones.
An annuity contract is a contract designed to provide payments to the holder at specified intervals, usually for a fixed period, for the annuitant's life, or for the lives of two or more joint annuitants. There are many types of annuities. Immediate annuities and deferred annuities are two examples.

An immediate annuity may be a better choice in Ja Rule's case as regular payments begin just one payment interval after the annuity is purchased. An annuity can be purchased from an investment company or insurance company, for example. An immediate annuity would be purchased with one lump sum, which is invested and managed by the insurance company. A specified amount of payment is sent to the beneficiary of the annuity at regular intervals. For example, if Ja Rule wanted his family to receive about $10,000.00 per month, he would purchase a $250,000.00 inflation adjusted annuity for two years scheduled to earn 6%.

Click here for an annuity calculator that will allow you to determine your needs.