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.

In-Plan Annuities Show Promise Despite Obstacles

An " in-plan annuity " refers to an annuity option that exists within a 401k plan. The notion of an annuity-based retirement income option within a 401k plan is a relatively new concept. Advocates of in-plan annuities--which include key members of the Treasury Department and Congress--believe that partial annuitization is important for the retirement security of the millions of Americans whose access to stable sources of pension income is largely limited to Social Security . There are, however...

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Record Sales in Fixed Indexed Annuity Market

Total sales of fixed indexed annuities reached $8.3 billion during the second quarter of 2009. This represents an increase of 18.3% from the previous quarter and an increase of 21.2% from the same period a year ago. The sales momentum comes despite industry headwinds which include fewer insurance companies and fewer product offerings. Aviva was the top insurance company in the space with a 20% market share while the top selling indexed annuity product was the MasterDex X from Allianz . Source:...

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Fixed Indexed Annuity

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Fixed Indexed Annuity

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Insurance Companies

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Allianz

Aviva

Bulk Purchase Annuity Market Booming as Pension Deficits Swell

The UK pension market is in tough shape post financial crisis. According to a Bloomberg article, "about 87 percent of the U.K.’s 7,400 final salary pension plans are in deficit following the financial crisis." This crisis offers an unprecendented opportunity for companies that insure the pension liabilities of private corporations through bulk purchase annuities. “The bulk-purchase annuity market is going to continue to be a good market because companies want to get their pension...

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Bulk Purchase Annuity

Volatility

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Financial Crisis

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Bulk Purchase Annuity

Volatility

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Financial Crisis

Analysts Continue to Question Genworth's Strategy

The shares of Genworth Financial were under pressure after a Citigroup analyst downgraded Genworth to sell from hold. Genworth shares dropped 5.4% on Friday and are still down 47% over the past 12 months. The Citigroup analyst, Colin Devine, believes that Genworth's business strategy is fundamentally flawed: “Things will likely get worse before they get better,” Colin Devine, an analyst with Citigroup, said yesterday in a research note. “We believe management continues to...

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New York Life Expanding Variable Annuity Offerings

New York Life is developing new variable annuity products that will be distributed through independent broker -dealers and registered investment advisors. The company is active in the variable annuity market, but to this point they have distributed the variable products through their own career agents. Key themes with the new product include transparency, low cost and simpicity. Source: Investment News Full Story

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Annuity

Variable Annuity

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Registered Investment Advisor

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Transparency