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 costs


3)      Annuity product complexity


4)      Pros and cons of the immediate annuity


5)      Longevity insurance or the longevity annuity


6)      Laddered purchases of immediate annuities


7)      Credit risk


8)      Variable annuities the living benefits


9)      Industry sales trends


10)   Determining optimal levels of annuitization in the context of an overall portfolio

Source: Wall Street Journal (subscription required)

Full Story