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
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%.