Income Annuity
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.
Read MoreUnderstanding the Tools in Your Retirement Income Toolbox
You should be familiar with all of the tools in your retirement income toolbox. Retirement plans can be built to manage varying risks by strategically combining the following retirement income tools in different ways.
Read MoreAnnuity 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…
Read MoreSecuring 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.
Read MoreAnnuity 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:
Read MoreRetirement 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.
Read MoreEvaluating Investments vs Insurance in Retirement
We must avoid from the notion that investments or insurance alone will best serve retirees. Investments vs Insurance – each has its advantages
Read MoreWhite Paper: Reduce Retirement Costs with Deferred Income Annuities Purchased Before Retirement
This study uses a methodology proposed by Milevsky (2006) to evaluate the impact of guaranteed income products on the cost of funding retirement and shows when, and for which clients, a deferred income strategy makes sense.
Read MoreImproving Retirement Outcomes with Investments, Life Insurance, and Income Annuities
Certain approaches to building retirement income strategies offer more spending AND greater legacy.
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