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Your Retirement Goals

By Nathaniel Pulsifer On May 15, 2013 · Add Comment · In Case Study, Retirement Income

A reader wrote in this week.  Like so many, it seems this person has a hard time knowing where to start, and this is unfortunately a very common issue we run into every day.  But not to fear! A few simple questions can get you on the right track

Yes, I read your annuity report. [...]

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How The Rich Play The Market- New WSJ Article

By Nathaniel Pulsifer On May 14, 2013 · Add Comment · In Annuity and Retirement Income Articles, Fixed Index Annuity, Hybrid Annuities
feature-box-gold

A new article in the Wall Street Journal caught my eye.  “How The Rich Play The Market” is a fresh reminder that human nature is just that- human.

The ‘Rich’ don’t necessarily have any secrets, better will, stronger nerve, or more skills.  In fact, even the ‘Super Rich’ suffer from the same impulses and trading [...]

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How Annuities Mitigate Inflation Risk

On April 18, 2013 By Nathaniel Pulsifer
money-bill-inflation

Inflation is the gradual erosion of the purchasing power of your dollar.  Inflation has averaged about 3.3% per year from the start of the US Government data set in 1910 to today- this includes the galloping years in the 1970’s. Check out the Government’s own Inflation Calculator HERE:

Now, I’ll be clear, an annuity [...]

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Top 5 Facts About Annuities And Taxes

On March 15, 2013 By Nathaniel Pulsifer

There are often questions about annuities and taxes.  This brief guide will walk through a few of the top questions we receive.  Be sure to consult your own tax advisor for specific issues and clarifications.

Q: How Are Annuity Payments Taxed?

A: The basic rule for annuity taxation (i.e., “amounts received under an annuity”) is that [...]

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Why SMA’s Are Hard To Beat

On March 13, 2013 By Nathaniel Pulsifer

While we work with a variety of annuities, we frequently gravitate to Secondary Market Annuities.  For investors specifically seeking a lifetime income stream that can not be outlived, SMA’s are not appropriate.  But for many, a fixed period of time or a fixed lump sum is appropriate, and the yield on the SMA’s makes it [...]

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Annuity Benefits

On March 4, 2013 By Nathaniel Pulsifer

When writing and speaking about annuities, I sometimes get caught up in products and contract specifics and need to zoom out to the big picture now and again.

Lets take a moment to look at the highest level view of annuities, where you really have just two types of benefits.  These are [...]

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Want a Guaranteed Loser? Try TIPS

On February 3, 2013 By Nathaniel Pulsifer

Bond yields are at all time lows, and with Treasury Inflation Protected Securities, or TIPS, you can go even lower.  You can buy now for a guaranteed loss.

What a world we’re living in!

The issue with TIPS is that the yield is keyed to interest rates AND inflation.  And with both [...]

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Should Retirement Age Be 70?

On February 1, 2013 By Nathaniel Pulsifer

A group of CEO’s recently called for a raise in the retirement age to 70- what do you think?

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Americans Rip Up Retirement Plans

On February 1, 2013 By Nathaniel Pulsifer

New news from Conference board reported in the Wall Street Journal shows that nearly 2/3’rds of Americans are now planning to delay retirement.

Financial losses, a sluggish economy, and stubborn unemployment contribute to the delay in plans and decrease in expectations.  And meanwhile, the percentage of workers over 60 in the workforce is growing.

The [...]

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Why Are Annuities Safe?

On January 29, 2013 By Nathaniel Pulsifer

Its all about the money.  Annuities are safe because the insurance company issuing the annuity contract- obligating themselves to whatever specific guarantee you are buying- is in the business of making money and having money available at all times to pay claims.

Insurance companies offer a guaranteed benefit to you, be it life insurance, home [...]

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4% Rule Under Fire- Again

On January 21, 2013 By Nathaniel Pulsifer

The often-quoted ‘4% withdrawal rule’ that mainstream investment managers use as a guideline ‘safe’ withdrawal rate for a portfolio has come under fresh fire.

The volatility of the last few years should have already given most conservative investors enough heartburn to not stake their life savings on this faulty rule of thumb.  [...]

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Junk Bonds’ Fire Is Poised To Fade

On January 7, 2013 By Nathaniel Pulsifer

Is this a sign of peak low rates? Junk Bonds, the highest risk/ highest yield segment of the bond market, has been on a tear over the last year, and those gains (price increase/ yield decrease) roared on in the first days of 2013.

Bond yields have been marching steadily down- the chart on [...]

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A Happy New Year? Not For Bonds

On January 5, 2013 By Nathaniel Pulsifer

A recent Wall Street Journal article highlighted the Russian Roulette investors are playing in the bond markets.  The slightest upward tweaks in interest rates sends bond prices falling… and when prices fall, you lose money if you have to sell.  Bond buyers nowadays need to be making a ‘yield to [...]

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Why Take 1.15% When You Can Get 4.5%?

On January 2, 2013 By Nathaniel Pulsifer

New York Life  announced earlier this year it’s short and mid term, guaranteed fixed annuity rate of 1.15%.  Citing a continued flat-line market, NYLife is offering rates little better than a CD as a guaranteed floor rate.

There is a market value adjustment, so the actual yield to maturity [...]

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For Many Financial Advisers, Stocks Become A Hard Sell

On December 16, 2012 By Nathaniel Pulsifer

This post’s title is taken directly from a Wall Street Journal cover story that left me smiling today.

Stocks hold no allure for me anymore… Since the first day I worked with annuities, I’ve been free of the roller coaster ride of stocks- the gut-wrenching drops in value, the sleepless nights, and the fear [...]

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Muni Bond Tax Breaks On The Table In Cliff Talks

On December 12, 2012 By Nathaniel Pulsifer

 

In a stunning turn of  tables, even the tax-free nature of muni-bonds are on the chopping block in  our current buget turmoil.

Many of our readers are heavily invested in Munis so this article wil lsurely be important, interesting and relevant.

Here’s the Source:

And here’s a key summary:

By exempting municipal bond [...]

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Annuities Allow For Higher Yields- Moshe Milevsky In The News Again

On December 10, 2012 By Nathaniel Pulsifer
annuity chart

For once, the Wall Street journal has published an article that I agree with on the topic of annuities!

For years I’ve cringed as their “Buy and Hold Stocks and Bonds” tunnel vision routinely ignored or bashed annuities.

But today brings a good article that I agree with, advocating to create a [...]

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Hartford Follow Up- Don’t Leap at Annuity Buyback Offers….Yet….

On December 3, 2012 By Nathaniel Pulsifer

As a follow up to last week’s article about Hartford offering buybacks on some of its annuity contracts as part of its portfolio cleansing, I thought I’d point you to a WSJournal piece in today’s paper.  It may yet be premature to take annuity buyback offers!

[...]
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No Easy Money in Muni Bonds

On December 2, 2012 By Nathaniel Pulsifer

Jason Zweig is usually a surly and negative financial commentator.   I can’t recall the last time one of his columns said much positive about any financial marketplace.  This week is no exception as he takes aim at Muni  bonds, which many of our clients considering Secondary Market Annuities also hold.

I guess his position [...]

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Perfect IRA Deal- A Nice Deferred Lump Sum

On November 23, 2012 By Nathaniel Pulsifer

Today I want to feature a deferred, lump sum investment that is just hard to beat.  We have two similar lump sums, from two different top rated carriers, AIG and Prudential.  Each have the same payment stream.

The AIG deal is this one:

What makes this so special?  Well, compare it to a CD or [...]

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Longevity Insurance In The News

On November 23, 2012 By Nathaniel Pulsifer

Longevity Insurance is one of the best ways to guarantee lifetime income AND take advantage of the higher yields offered by Secondary Market Annuities.  It works like this:

Assume we are talking about a 65 year old California man with $1M assets who need $5000/ month for his essential living expenses

Step 1: Purchase a [...]

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  • Recent Posts

    • Your Retirement Goals

      A reader wrote in this week.  Like so many, it seems this person has a hard time knowing where to start, and this is unfortunately a very common issue we run into every day.  But not to fear! A few simple questions can get you on the right track

      Yes, I read your annuity report. [...]

      Read Full Post

    • How The Rich Play The Market- New WSJ Article

      A new article in the Wall Street Journal caught my eye.  “How The Rich Play The Market” is a fresh reminder that human nature is just that- human.

      The ‘Rich’ don’t necessarily have any secrets, better will, stronger nerve, or more skills.  In fact, even the ‘Super Rich’ suffer from the same impulses and trading [...]

      Read Full Post

    • How Annuities Mitigate Inflation Risk

      Inflation is the gradual erosion of the purchasing power of your dollar.  Inflation has averaged about 3.3% per year from the start of the US Government data set in 1910 to today- this includes the galloping years in the 1970’s. Check out the Government’s own Inflation Calculator HERE:

      Now, I’ll be clear, an annuity [...]

      Read Full Post

    • Top 5 Facts About Annuities And Taxes

    • Why SMA’s Are Hard To Beat

    • Annuity Benefits

    • Want a Guaranteed Loser? Try TIPS

    • Should Retirement Age Be 70?

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