The term irrevocable refers to a decision or contract that cannot be changed or amended. This term is important in the world of annuities because certain annuities—particularly in years past—involved financial decisions that are binding for long periods of time. The irrevocable nature of the decision would present high emotional or psychological barriers for potential purchasers or annuities. In reality, though, the current annuity marketplace provides product options that make the decision to purchase an annuity much less onerous and binding. An example would be guaranteed living benefits that can be attached to variable annuities.

Annuity Duration

Duration is a measure of the time associated with cash flows or payments from a bond. Duration measures the amount of time (in years from the purchase date) required for a bond owner to receive interest and principal payments that are equal to the cost of the bond.

Long duration bonds have payments that are spread-out over a relatively long period of time (...

Anna Rappaport on Annuities and Planning for the Long Term

Anna Rappaport is widely recognized as a leading expert on retirement systems, workforce issues, the impact of changing demographics and women’s...

Annuity Purchase Pitfalls

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Annuity Digest Buying Guide: Annuity Purchase Pitfalls

The Absolute Return Unicorn - Investment Products Offering Both Gains and Protections Prove Elusive

The asset management industry has struggled to provide older investors and retirees with investment products that provide returns with little or no risk of losing principal.

In other words, the industry has not had any success in developing investment products that provide return without any risk.

A recent Wall Street Journal...

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