Annuity News

The financial crisis has resulted in renewed interest in immediate annuities which can be used to lock-in stable, guaranteed income for a lifetime. "An immediate annuity can function just like a pension , producing a predictable payout. As the "immediate' part of the name suggests, the distributions start shortly after the money is invested." Longevity risk , inflation protection, how much to annuitize , and adding annuities over time are addressed in this article. Source: Wall Street Journal...

This article addresses the process of using funds in an individual retirement account (IRA) to fund the purchase of an immediate fixed annuity . "Annuity in an IRA" and "trustee-to-trustee" rollovers both enable assets to be transferred directly from an IRA to an annuity. Tax implications are also addressed. Source: Wall Street Journal Full Story (subscription required)

Fidelity Investments released their annual estimate of the amount required to cover health care costs in retirement. The $240,000 estimate is for a 65 year old couple retiring in 2009. This amount is in excess of what is provided by Medicare. In other words, the $240K is for costs over and above what is covered by Medicare. The $240,000 is up 50% from 2002, highlighting the fact that retirees face vastly different rates of inflation than the rest of the population. Source: Fidelity Investments...

Some of the nation's most prominent financial advisors are looking at annuities in a new light. Partial annuitization to ensure a base of stable income is discussed. Think twice if you are at or approaching retirement and you are not able to at least have a basic annuity-related discussion with your financial advisor . "At the end of the day, investors want to know they can withdraw X amount of dollars [a year] for life. That's why it makes a little more sense than it ever has before," he says...