Annuities – what they are, how they work and how to choose the best type of Annuity
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Investment dollars are pouring into equity index annuities. These annuities come close to producing what retirees and near-retirees want and need: guaranteed income with safety of principal and inflation protection. We covered EIAs in past visits. They are a hybrid of fixed annuities and variable annuities. An investor pays a premium to the insurer to […]
Few investors right now are buying the old-fashioned annuities. But as they shift from their accumulation years to their distribution years, many investors want some key features of annuities: tax deferral, guaranteed income, and income that cannot be outlived. Insurers are responding with an array of new features. Some are worth considering; others are the […]
Old-style defined benefit pension plans are looking more attractive to many retirees and near-retirees. A defined benefit (DB) plan pays a fixed monthly amount for life, and many even increase the payment for inflation each year. When the stock market is volatile and uncertain, and bond yields are low, a DB plan can look good. […]
Recent changes are making annuities hot again. At least that’s what the annuity sellers want you to believe. Some of the new annuity features are attractive. But others are just sales gimmicks. The biggest changes are in fixed annuities. The bear market in stocks initially drew investors to safer investments, such as fixed annuities. But […]
What you don’t know about retirement can hurt you. In fact, just a few wrong decisions in your investments, taxes, or estate planning could completely derail your retirement plans. Worse yet, the rules of the game keep changing, making it harder to keep up. For these reasons, I’ve assembled all the key points – everything you need to know — into one comprehensive report. Click here today for free access.
Equity indexed annuities are back. Sharp stock market moves seem to stir sales of these annuities. A strong stock market draws conservative investors to them, seeking higher returns than their fixed income investments. A bear market causes other investors to look for a safer way to invest in stocks. Unfortunately, few investors really know what […]
Regulators finally are focusing their efforts on some negative aspects of the variable annuity market that we’ve been discussing for years. Recently, several actions were taken by the National Association of Securities Dealers and the Securities and Exchange Commission. The NASD, which regulates its broker members, in April proposed new rules governing variable annuity marketing. […]
The IRS in a recent ruling handed a break to annuity owners who are under age 59 1/2 and need cash. The ruling allows these annuity owners to restructure payments they receive from the annuities. Until the ruling, annuity owners had only one opportunity to determine the payment stream to take before age 59 1/2. […]
Almost every retiree has a choice of how to receive benefits: as either a lump sum or a stream of annuity payments. The choice is critical, yet it doesn’t receive the critical analysis it should. About half of employers give these options on 401(k) and other retirement plans. You face a similar choice with an […]