Annuities range from being simple to incredibly complex and as an investor it is your responsibility to learn what you may be buying.  The simplest form of an annuity is when you give an insurance company a lump sum and then they provide you with an income stream for a period certain (or life), this is known as a Single Premium Immediate Annuity.  The more complex products are deferred annuities and usually are variable or indexed based.

Why Hasn’t an Investment Firm or Insurance Company Created this Product?

After reading the twelfth article about how there is yet another generation woefully unprepared for retirement and how the 401(k) is a terrible product I started to think about what an investment firm or more likely in this case an insurance company can do to engage in my generation and the answer is so simple. Create and market a defined benefit pension. Private Pensions Are All But Gone It is no secret that private pension participants are decreasing.  One Social Security Study found that, The percentage of workers covered by a traditional defined benefit (DB) pension plan that pays a lifetime annuity, [...]

By |2015-01-27T20:14:16-04:00October 21st, 2014|Annuities|3 Comments

I Can’t Believe I have Been Blogging for 4 Years

On August 5th of 2008 I put up my first post.  I had no idea if anyone would read about my journey, nevertheless care about what was going on in my life, but I wanted to share my thoughts with whoever wanted to read them.  Since putting that first post up I have seen somewhere between 570,000 and 630,000 pageviews (analytics vs sitemeter) and while that is probably a day’s worth of views for a news site I am pretty happy with it, especially since most of the first year or so I was getting under 15 page views a day. I [...]

What is a Longevity Annuity?

You may not agree with how the product is used, sold or priced but you really have to respect the financial industry for being able to make a products to fit almost all situations.  I recently heard about a relatively new product called a Longevity Annuity which seems to operate like an extended deferred annuity with a single premium immediate annuity twist. What is a Longevity Annuity? To be able to understand what a longevity annuity is you first have to under the basics of an annuity product. Basics of Common Annuities The easiest type of annuity to understand is the Single [...]

By |2014-06-13T21:18:37-04:00June 15th, 2012|Annuities|1 Comment

Would You Build an Income Stream Based on SPIAs If you are 30?

With pensions becoming as common as the Dodo bird, annuities are losing their negative connotation and are even becoming more and more popular in the main stream financial media.  Despite the fact that I am only 30 I have started giving real thought to purchasing small staggered Single Premium Immediate Annuities as part of my multiple income stream strategy. What is a Single Premium Immediate Annuity (SPIA)? At its most basic form an annuity is nothing more than, a specified income payable at stated intervals for a fixed or a contingent period, often for the recipient’s life, in consideration of a stipulated [...]

By |2013-09-26T14:56:26-04:00March 22nd, 2012|Annuities|9 Comments

Insurance Products Should Not be a Four Letter Word When it Comes to Retirement Income Planning

The Wall Street Journal had a recent article that I think was detrimentally incomplete even taking into account that it is 1,000 words on a subject that can take years to master.  The article, “You Need a Plan to Boost Retirement Income” by Jeff D. Opdyke highlights three asset vehicles/classes that he thinks should take retirees through retirement, The proper mix of stocks and bonds and cash is the mix that allows you and your parents to sleep at night. That may sound trite, but it is the only true gauge that works. Mom and Dad can look at all the charts [...]

By |2013-09-26T14:58:31-04:00July 26th, 2011|Annuities, Qualified/Retirement|15 Comments