Glenn Daily on Buying Annuities and Why it Might Make Sense to Wait
Glenn Daily is one of the top financial advisors in the country.
Specializing in life insurance and annuities, Glenn is widely...
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Interest Rates
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.
Annuity Industry Pioneer Jerry Golden at Work on his Latest Venture
Jerry Golden--often referred to as the father of variable life insurance and variable annuities--has had a distinguished career as an innovator and...
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Do fixed annuity rates generally track the federal prime rate, the Treasury bond rate, or some other financial metric?
Great question.
In a nutshell, keep an eye on 30 year U.S. mortgage rates.
Moshe Milevsky does a great job addressing this question in paper he co-authored last spring titled "The Annuity Duration Puzzle".
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Annuities Versus Bonds
Submitted by tom on
This discussion topic was originally posted in the form of a comment.
The general topic is how annuities compare to bonds. It is a natural question since both annuities and bonds provide owners with fixed payments.
We moved the comment here so that it can surface to a larger audience and hopefully generate further discussion and comments.
As noted below, the conceptual basis for this content is based on a great paper written a few years ago by Jason Scott--the Director of Retiree Research at Financial Engines.
The original post is as follows:
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