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.

Variable Annuity Related FINRA Arbitration Cases Triple in 2009

The Financial Industry Regulatory Authority (" FINRA ") has reported that the number of arbitration cases related to the sale of variable annuity products increased from 47 cases in 2008 to 123 cases in 2009. Overall, the number of arbitration cases surged 43% to 7,137. This increase in investor grievances is not surprising given what a difficult year 2009 was for many. Investment News reports that many of the variable annuity cases involve "products with risky subaccounts and clients over age...

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Annuity

Variable Annuity

FINRA

Financial Industry Regulatory Authority

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Arbitration

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Glossary:

Annuity

Variable Annuity

FINRA

Financial Industry Regulatory Authority

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Arbitration

Annuities and Deflation

Submitted by Anonymous on Fri, 01/22/2010 - 13:09

There seems to be quite a bit of concern about inflation, and lots of discussion about how inflation impacts annuities and other financial services products.

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How do Annuity Salesfolks get paid their commission?

Submitted by Anonymous on Wed, 01/20/2010 - 11:48

How do Annuity Salesfolks get paid their

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About Financial Advisors

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Annuity

Commission

Financial Advisor

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About Financial Advisors

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Annuity

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Financial Advisor

Senate Bill 2832 Could Transform Retirement Income Market

While an initial step, Senate bill 2832 could set the course for significant changes in the retirement income industry. The bill would amend the Employee Retirement Income Security Act (ERISA) which governs defined contribution plans such as the 401k . Plan sponsors would be required to provide plan participants with an annual statement that shows what the value of their retirement account would be in terms of guaranteed monthly payments--in other words, annuity payments . The bill is intended...

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Annuity

Annuity Payments

Defined Contribution Plan

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Annuity

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Defined Contribution Plan

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Annuitization Continues to be a Focus of Obama Administration

The Obama Administration continues to make annuities and other potential sources a guaranteed income a policy priority. As described in a recent Bloomberg article, much of the concern seems to be related to the retirement plan damage caused by the financial crisis. While recently recovered, average 401k balances took a major hit in 2008 and early 2009. Bloomberg reports that the U.S. Treasury and Labor Departments will ask for public comment as soon as next week on ways to promote the...

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