An annuity with payments or a payout phase that continues for as long as the annuitant is alive. In contrast to an annuity certain which have payments that only last a certain period of time, the guarantee of payouts for life is important because it provides protection from longevity risk—one of the most important protections provided by annuities.
Conventional financial wisdom says that bonds should comprise an increasing percentage of a portfolio as the owner ages and heads into retirement.
In theory, a retiree’s need for income and a reduced tolerance for risk are the main drivers of the larger allocation to bonds.
A key consideration, though, is...
A basic life...
Mark J. Warshawsky is Director of Retirement Research at Towers Watson.
Dr. Warshawsky served as assistant secretary for economic policy at the U.S. Treasury Department from 2004-2006 and he has held senior level economic research positions at the Federal Reserve Board, the Internal Revenue Service and...
The world is filled with investing indexes and benchmarks, and all professional investment managers measure their results relative to some type of performance standard such as the S&P 500.
On the retirement...
A common question is how annuities compare to other financial products that seem similar such as bonds, certificates of deposit (CD) and money market funds. After all, each of these products promises to provide some type of fixed return in exchange for your investment.
Looking at a simple life...
