Annuity

An annuity comes in many forms, but a simple definition is that an annuity is a contract that converts a sum of money into a series of periodic payments for an agreed upon period of time. An annuity can be thought of as a financial vehicle that converts a pool of money into a stream of income. Annuities are most useful in addressing the financial planning needs of people in or approaching retirement. Annuities are unique in the financial world because they can provide protection against the risk or outliving one’s assets (longevity risk) by guaranteeing income payments in perpetuity or any other selected amount of time. Annuities can be viewed as a type of personal pension plan. Social Security is similar to an annuity in that money contributed over the course of one’s working years is converted into a series of periodic payments that provide income during retirement.

Morningstar on Longevity Risk

Morningstar's Director of Personal Finance writes about the factors that are within an individual's control and therefore manageable through good planning. The economy and stock market movements are not on the list. Prudent risk management in retirement is on the list. The items that fall into the risk management category include: Longevity risk . Long-term care. Inflation . Regulatory risk and higher taxes. Longevity annuities are discussed in the context of longevity risk. Source: Morningstar...

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New Study Assesses Use of Annuities in Wealth Management Strategies

Two industry-leading consultants have published a study that compares a range of wealth management strategies that are available to individuals in retirement. None of the strategies are dominant on an overall basis, but certain approaches show clear strengths in terms of income generation, levels of wealth, and the impact on bequest motives. The dramatic impact of product fees is also addressed. Six different retirement strategies are discussed: Systematic withdrawal from mutual funds. Fixed...

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Annuity

Annuitization

Guaranteed Minimum Withdrawal Benefit

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Annuity

Annuitization

Guaranteed Minimum Withdrawal Benefit

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Gold on a Tear While Buffett Takes a Break

If gold prices and Warren Buffett’s investing activities are any indication, the near-term could prove difficult for investors.

Warren Buffett was selling more stocks than he was buying earlier this summer, and...

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MetLife Gaining Strength at the Expense of Weaker Rivals

MetLife 's leading position in the U.S. annuity industry is only getting stronger. The company is benefitting from financial crisis-related flight to quality. In other words, financial advisors and customers who are concerned about credit risk are migrating to a handful of the strongest insurers. MetLife expects variable annuity sales to exceed $15 billion in 2009--exceeding pre-financial crisis revenue levels in 2007. The company has also seen an increase in fixed annuity business. Source:...

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New Service May Allow Charitable Organizations to Outsource Gift Annuity Administration

A new service may provide charitable organizations with greater access to gift annuities. The administrative aspects of charitable gift annuities can be a burden and obstacle for many smaller not for profit organizations. A Cambridge-based consulting firm is in discussions with a large non-profit to provide nationwide administrative services for gift annuities. Source: Philanthropy.com Full Story

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Nationwide

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Annuity

Charitable Gift Annuity

Gift Annuity

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Annuity

Charitable Gift Annuity

Gift Annuity

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