Academy Login

Is Buying an Annuity in a Zero Interest Rate Environment a Good Idea?

The Federal Reserve’s decision to cut its benchmark federal funds rate from 1% to a range of 0% raises significant questions for those reassessing their retirement nest egg—a common occurrence following a dramatic selloff in equities according to research conducted by Indiana University’s Alessandro Previtero —and the value of annuities in providing guaranteed lifetime income.

Is Buying an Annuity in a Bear Market a Good Idea?

As the stock market experienced unprecedented growth over the past eleven years, many people were naturally less interested in the lifetime income options from pensions or annuities. Who wouldn’t rather have all the assets today so they can invest them with the idea of earning high returns?

What Are Annuities?

Annuities are like power tools. In the right hands, they can help you considerably, but if you don’t know what you’re doing, you could cut your fingers off.

Annuity Pricing Sensitivity

With all of my discussions of annuities lately, it is worthwhile to also consider the sensitivity of annuity pricing to interest rates, gender and age-related mortality factors. Relationship Between Payout Rates and Interest Rates Figure 1 estimates the relationship between annuity payout rates and interest rates for 65-year old males, females, and opposite-gender couples with […]

Securing Longevity Insurance Through Income Annuities

I have published a few pieces in the past couple weeks on how income annuities are priced and used. Understanding how to use annuities can be a great benefit when planning for retirement. Let’s consider another possibility.

Annuity Pricing 102

In today’s scenario, we’ll see what happens to the price of an annuity if:
1. We guarantee income will be provided for at least 10 years, regardless of whether the annuitant lives.
2. We provide a cash refund if the annuitant dies before at least receiving their full principal payment.
3. We include a cost-of-living adjustment for annuity payments.

Income Annuity 101

How are different types of annuities priced? It’s not as hard as you might think, as the basic recipe requires just three ingredients:

Retirement Income Strategies with Annuities

Income annuities come in a variety of shapes and sizes. It can be overwhelming to know which one makes the most sense for your situation. In this column, I explore how income annuities work and what options are available.

Why Retirees Should Choose DIAs over SPIAs

My new column at Advisor Perspectives is called, “Why Retirees Should Choose DIAs over SPIAs.” In the past, I’ve written about the efficient frontier of retirement income, finding that retirees can best satisfy twin goals of preserving their lifestyle spending needs in bad luck cases and leaving the potential for upside as well through a […]

Join us for our FREE Webinar:

The Election and the Stock Market:

Understanding the Effects on Your Investments

Hosted By:

Bob French, CFA

Register now to attend LIVE!

Join us for a FREE webinar:

Disability and Early Retirement:

What You Can Do to Protect Yourself Now

Hosted By

Doug Strott

Tuesday, May 21st

1:00 - 2:00 PM ET

Reserve Your Spot and Register Today!

Are You Ready for a Challenge?

Register to attend our FREE 4-Day Retirement Income Challenge event on March 4th – 7th from 12:00 – 2:00 PM ET each day.

Click below to learn more and reserve your spot!