Using Annuities to Combat Longevity Risk
An actuarial statement regarding annuities and longevity risk has just come across the the PR Newswire.
Longevity risk is of course the risk a person has of outliving retirement assets. This statement talks about how you can do more with less when using income annuities in retirement. Apparantly it takes 50% more assets to equal the income generation of annuities.
And this is all according to the American Academy of Actuaries. I’ve mentioned this several times before but the argument is strengthened with a complimentary study from the group of professional mathematicians.
Further, this leaves little doubt that annuities should play a critical role in prudent retirement income planning. Whether you have just enough to retire or barely enough, guaranteed income should serve as a foundation.
Now, everyone is different so solid analysis and advice is key to designing a retirement income portfolio properly. If you are not already a member of Annuity Straight Talk, join today to learn what annuities can accomplish for you.
The report can be found here.
Variable Annuities With Guaranteed Income
InvestmentNews.com released another beneficial report on the use of variable annuities with a guaranteed lifetime withdrawal benefit.
These are very popular products and according to the report, Ibbotson Associates Inc. conducted a study to test variable annuities against traditional retirement income strategies..
In a 30 year period from 1979-2009, the annuity performed well as a substitute for the fixed income portion of a traditional portfolio.
As you may or may not know, Annuity Straight Talk has been suggesting this for quite some time and we have a report that simplifies this specific type of annuity so each potential consumer can fully understand the benefits and disadvantages.
Sign up now for our GLWB report or click here to read the article.
Guaranteed Lifetime Income
And yet another backdated article with current relevance… This came out in Forbes last May and the lesson will be important as long as retirees explore all the ways to maximize cashflow from retirement assets.
As also mentioned on this site, the Forbes articles talks about how immediate annuities create the highest level of guaranteed lifetime income of any retirement product on the market.
Of course many annuity products will produce income guarantees but choosing the right one takes careful research and consideration of all personal factors involved.
Annuity Straight Talk focuses on the various products available, the pros and cons of each and how to untimately determine suitability for the intended consumer.
Do yourself a service that will last a lifetime and start your free memberships today.
Read the Forbes.com article here.
Retirement Income
This article on BusinessWeek.com came out last summer but it’s underlying lesson will be relevant for years to come.
Fidelity completed a study that shows 85% of people from ages 55-70 value guaranteed retirement income above high investment returns.
The article also suggests that financial institutions are attempting to craft complex guaranteed funds to add more income security to retirement accounts.
This is all more complicated than it needs to be. Annuities have been around for a long time. They can do the job and have passed test after test over several generations.
AnnuityStraightTalk is positioned to give people simple solutions with profitable and lasting effects. Join the site now for free access to all of our valuable reports.
Find the Business Week article here.
Variable Annuities: Consider The Downside
Business Week just released this article that points out the drawbacks of using annuities for guaranteed income in retirement.
Never forget to consider whether the additional expenses charged for a guarantee are worth the cost.
It all just depends on how much you have, what you need it to do and how long it has to last. In the end, buying an annuity is an intensely personal decision.
