Advanced Life Deferred Annuity

An advanced life deferred annuity (ALDA) is the same as a longevity annuity or longevity insurance. This type of annuity is used to hedge longevity risk. In other words, an ALDA is used to protect someone from outliving their assets. The advanced life deferred annuity involves a single, lump sum premium payment at the onset of the contract period. The annuity payments are deferred or begin later in the contract owner's life. For example, a 65 year old person may buy an ALDA that begins providing annuity payments at age 80. The ALDA is a very efficient form of annuity and can very effectively provide protection against longevity risk.

Consider a Longevity Annuity to Avoid Worrying About Outliving Your Income in Retirement

A very good, balanced article about the longevity annuity --well worth the read. Consider that the annuity payout for a $50,000 longevity annuity purchased from MetLife by a 60 year old male is $56,106 per year. The payouts begin at age 85 and last for the lifetime of the contract holder . Tax considerations, estate planning and financial planning are discussed in the context of longevity annuities. Source: U.S. News and World Report Full Story
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Consider Annuities to "Build a Pension and Salvage Your Nest Egg"

An in depth and very worthwhile article in the Wall Street Journal discusses annuities in the context of the financial crisis. Surging demand for annuities--particularly fixed--is a natural reaction to the volatility and pain experienced over the past couple of years. That said, would-be buyers need to inform themselves and consider the pros and cons associated with the entire landscape of options. Topics addressed in the article include: 1) The notion of creating a personal pension 2) Annuity...

Longevity Risk Listed as Top Retirement Risk - "Biggest and Most Difficult to Figure Out"

A list of ten risks faced by retirees includes the obvious such as stock market risk , but also includes issues that may not be top-of-mind for many retirees such as inflation risk and interest rate risk . Longevity risk is at the top of the list. Immediate annuities and the longevity annuity are mentioned as a potential solutions to the risk of outliving one's assets: "Given that, what's the best way to manage that risk? Social Security , traditional pensions and payout annuities all promise...

Longevity Insurance Creates Spending and Investment Flexibility for Retirees

One in three baby boomers is expected to live into their nineties. Longevity risk or the possibility of outliving one's assets is something that should be considered by all near and current retirees. Longevity insurance or a longevity annuity is one of the most efficient ways to hedge longevity risk. Relatively large amounts of guaranteed income later in life can provide peace-of-mind and financial flexibility earlier in retirement. "Because the insurance company has held your money for a long...

What are some rules of thumb for fixed income ppl choosing between bonds and annuities with their lump sum retirement payouts?

This is a great question but it is difficult to answer briefly. 

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