Mortality generally refers to death and more specifically to the rate of death among a given population.

Key Financial Planning Concepts

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Annuity Digest Buying Guide: Key Financial Planning Concepts

The following are a few key concepts to think about, look for, or listen to when developing a financial plan:

Information Gathering: This is one of the first steps in the financial planning process.  Your financial advisor should gather quite a bit of information about you and your current financial status.

Investing in Longevity Risk

Longevity risk has existed as an asset class for quite some time but has primarily been the focus of larger institutions. In a recent Financial Times article, the author discusses the recent proliferation of longevity and mortality related investment products. The range of product options include: Life settlements, blocks of annuities, reverse mortgages and life tenancies. Longevity/Mortality swaps. Structured notes, including pass-through, principal protected notes, coupon protected notes and...

Money Magazine on Immediate Annuities

There is a good article on the use of immediate annuities by Walter Updegrave who is a senior editor at Money Magazine. The article discusses how to think about an immediate annuity in light of other guaranteed payments from Social Security or a pension plan . Laddering of annuity purchases is discussed. Age and timing of an annuity purchase is addressed, as is the concept of the mortality yield or mortality credit . Source: Money Magazine Full Story

MetLife Introduces Low Cost Variable Annuity

MetLife recently announced the launch of a simple, low cost variable annuity called Simple Solutions. The Simple Solutions variable annuity will be sold through banks and is intended to address retirees and near-retirees in the range of 60-80 years of age. Features and highlights include: A guaranteed lifetime withdrawal benefit of up to 6% of the initial investment if withdrawals begin after age 76, 5% between 65 and 75, and 4% if before age 65. Automatic annual increases of the GLWB if the...
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Understanding the Basics of Annuity Fees and Expenses

A basic checklist from a top financial planner is worth a look if you are trying to understand the potential fees and expenses associated with annuities: The author considers the following: Annual contract charges Mortality and expenses charge (M&E Fee) Asset management fees Surrender charge Source: CNBC Full Story
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