Calculating the Value of a Pension Buyout Offer
One way to evaluate a...
Interest rates represent the cost of capital or what you pay to borrow money. A detailed definition of interest rates is beyond the scope of this glossary. What is important to remember is that interest rates are critical components of virtually every financial product you consume. This is especially true with annuities because, in general, insurance companies manufacture annuity products through a combination of bonds and derivatives. As a result, interest rates are the raw material of all annuity types.
One way to evaluate a...
Retirees and those saving for retirement should think of themselves as the managers of their own personal pension plan.
Many people used to have access to a traditional, defined benefit pension plan through their employers. With a defined benefit pension plan, someone else (an employer or professional managers hired by an employer) assumes responsibility for managing plan contributions, investments and...