An annuity comes in many forms, but a simple definition is that an annuity is a contract that converts a sum of money into a series of periodic payments for an agreed upon period of time. An annuity can be thought of as a financial vehicle that converts a pool of money into a stream of income. Annuities are most useful in addressing the financial planning needs of people in or approaching retirement. Annuities are unique in the financial world because they can provide protection against the risk or outliving one’s assets (longevity risk) by guaranteeing income payments in perpetuity or any other selected amount of time. Annuities can be viewed as a type of personal pension plan. Social Security is similar to an annuity in that money contributed over the course of one’s working years is converted into a series of periodic payments that provide income during retirement.
Submitted by Anonymous on
This forum thread is a continuation of a question that was posted in the FAQ section: http://www.annuitydigest.com/faq#n20
The question basically asked whether there are useful rules of thumb when choosing between bonds and annuities.
Submitted by Anonymous on
Any comment on Riversource Life Insur CO? Their AMBest Rating is generally positive but no FDIC insurance makes me nervous
Are you asking from the perspective of a current or prospective policyholder?
If so, what type of policy--annuity, life or disability? They are also very active in asset management arena with Seligman acquisition. Please clarify which area is the base of your inquiry.
