Are Annuities the New Pension?

I have thought and written extensively about the benefits, costs, and risks of immediate and variable annuities for retirement. Now even the White House is suggesting that more boomers consider using annuities to provide lifetime retirement income. Read more

New Types of Variable Annuities for Retirement

There is a transformation of sorts occurring in the annuity market. Some of the large sellers of annuities to baby boomers and retirees are introducing new annuity products that are simplified and/or that offer new features. Let’s look briefly at a couple of these new types of annuities. Read more

Boomer and Retirement Weekly Reader – Variable Annuity Edition

Baby boomers are understandably fearful of another market meltdown. They continue their search for investments that will provide retirement income security with preservation of capital. That’s hard to achieve in a single package. Read more

Variable Annuities with Living Benefits

Annuities of all kinds are popular with baby boomers who have turned gun-shy about the stock market. Annuity products make a lot of money in fees and commissions for the insurance companies that sell them. This means that there are a lot of marketing and advertising resources devoted to attracting baby boomers who are eager to put their dwindling retirement funds into something perceived as safe. Read more

Retirement Income from an Inflation Indexed Annuity

Inflation is the great killer of long-term retirement dreams. Inflation is also a great unknown. When it will hit, how hard, and for how long is difficult to predict. This can add significant complexity to retirement planning. Many of us want to simplify, not add complexity and cost. Read more

Annuity Laddering

You’ve probably thought about CD ladders and Treasury ladders. But have you considered a ladder of annuities as a retirement income strategy? If you are baby boomer, maybe you should. Read more

Annuity Income Taxation

As more baby boomers consider fixed annuities to protect retirement income, the issue of taxation of annuity income becomes an important factor. Because immediate annuity strategies are something we will be studying for our retirement, I thought now would be a good time to look at the tax issues. Read more

Equity Indexed Annuities – Problems, Risks and Benefits

Baby boomers nearing retirement have taken an increased interest in equity-indexed annuities.  The reason is that an equity indexed annuity (EIA) is a financial product that allows its owner to participate in stock market gains while limiting downside risk if the market drops. Read more

Life Annuity Calculators: Finding the Best Online

Life annuities for retirement income, particularly fixed immediate annuities, continue to intrigue me. Every day it seems that one or members of the insurance industry comes out with a new and different annuity product for baby boomers to consider.

My preference is to learn as much about investment and income products on my own, without facing pressure applied by people trying to sell me something. I have nothing against folks who sell annuities in general. I just feel that I can make a better decision about relative costs and benefits associated with financial products if I gather many of the facts on my own. Read more

Fixed and Variable Annuities More Attractive to Baby Boomers

I read a report this week that sales of fixed annuities in 2008 were up 60% in 2008 over 2007.  In the last quarter of 2008 alone, fixed annuity sales were $34.1 billion, up 90% from a year earlier, according to data from the Beacon Research Publications Inc.

Meanwhile, indexed annuities increased 12% to $7.2 billion, and immediate annuities sales were $2.4 billion, up 22% from 2007.

This tells me that baby boomers are increasingly turning away from the ups and downs of the stock market.  Instead they are looking at ways to use their retirement funds to purchase a secure income for life. Read more

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