Annuities News, Information and Guidance

What is a Fixed Rate? Why 2015 Will Be A Big Year for Fixed Annuities

This year will be big for fixed annuities, according to financial experts. But how an annuity works remains a mystery for many. AARP found that half of surveyed workers described themselves as “not too familiar” or “not at all familiar” with annuities — let alone the intricacies of different kinds of annuities and why a…

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Understanding Deferred Lifetime Annuities – Pros and Cons

There should be a required primer on retirement planning. It would be sort of an “everything you need to know, but were afraid to ask” type of manual, not unlike the ones everyone says should be issued at weddings or the birth of a child. But instead, as with everything else that’s important in life,…

3 Reasons Why Lifetime Annuities Are Terrible Investments and 1 Reason to Consider Them for Retirement

Investments are hugely important for retirement planning.  “Investing” means putting money into an asset with the expectation that it will grow, produce dividends or generate interest.  Investments are designed to grow your money although most, if not all, forms of investment involve some form of risk. By this definition, annuities are a terrible investment.  Why? …

What is an Annuity? 5 Things You Need to Know About Annuities

An annuity is an insurance product that you can purchase from a financial institution—usually an insurance company—that is designed to accept, grow and eventually pay out funds over a period of time. Because annuities can provide you with a steady source of income, they are commonly used as retirement planning tools by individuals who want…

Annuities

How the Federal Reserve Has More People Looking at Buying Annuities

What could be better than income you can depend on throughout your retirement? That’s why annuities were born, and why so many people have chosen to invest their money in these low-risk insurance products. But a funny thing happened on the way to the bank a few years ago. A zero interest rate policy (ZIRP)…

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How to Use an Annuity Calculator

A well-appointed retirement portfolio isn’t dependent on one source of income to sustain you. A much safer approach is diversification. That way, if one source falls flat you’re not left high and dry. Annuities are one way to diversify, but they should be approached with a lot of caution. With an annuity calculator, you can…

Annuities

5 Upsides of Investing in Annuities

Retirement planning seems to become more complex all the time. The more you learn, the more you know that there’s always something else to learn. Such might be the case with investing in annuities. If you’re not familiar with annuities, you can think of them as a type of retirement insurance. You pay in before…

Annuity Pros and Cons: Should You Opt for a Deferred or Immediate Annuity for Longevity Protection

Americans fear outliving their money more than they fear death. A staggering 61% of survey respondents said they were more scared of outliving their assets than they were of dying, according to a 2010 study of baby boomers from Allianz. The research found that this percentage climbed to 77% for those age 44 to 49,…

How Does an Annuity Work: Debunking the Myths

Annuities are often misunderstood, and the resources for defining them can be overwhelming. AARP found that half of surveyed workers described themselves as not too or  not at all familiar with lifetime annuities. “Annuities have a bad reputation among some people — but not necessarily a well-deserved one,” says TIAA CREF in a recent advice…

Expert Interview with Sheryl Moore About Competitive Intelligence and Retirement for NewRetirement.com

Sheryl Moore is the creator, founder, president and CEO of Wink, Inc. After seeing a hole in the insurance industry, Sheryl began developing an idea that turned into the successful company, Wink. Not only did she create a thriving business, but she has also put an energetic, expert team together to offer the best in…

Am I Too Young to Buy an Annuity? What is the Right Age for Purchasing an Annuity

Annuity purchasers are getting younger, recent data show. And for a good reason, financial planners say. “We’re seeing more knowledge around annuities, and more younger people are using them,” says Chad Noyes, managing director and financial advisor of Chicago-based Hoopis Financial Group, a member of MassMutural Financial Group. An annuity, or insurance product that pays…

5 Things You Need to Know about the New Longevity Annuity

If the recent recession taught pre-retirees one thing, it’s that a comprehensive, diversified approach to retirement planning is paramount. Even those who were well prepared with longstanding 401(k) plans or Independent Retirement Accounts (IRAs) found their investments took a hit during the economic downturn. Some people have considered additional products such as annuities to help…

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6 Questions to Ask Yourself Before You Purchase an Annuity

Should you buy an annuity? Investing your capital and planning for retirement are important practices, but there are a ton of options out there for how and where to park your money to realize potential growth in the future. Simply put, an annuity is a contract between you and an insurance company. You essentially give…

Buying an annuity

7 Signs Buying an Annuity Makes Sense for You

Prepared for properly, retirement can be a time when well-laid plans to come to fruition, providing the financial foundation for a lifestyle of comfort and leisure. If those are your goals for the next phase of life, you may want to consider if an annuity should be part of your plan. An annuity may provide…

Most Americans Don’t Understand Annuities; Decoding the Mystery of How Does an Annuity Work

While 71% of Americans say they would consider buying an annuity to meet a variety of needs, more than half admit they don’t understand the product, according to a survey by Phoenix Companies, Inc., a financial services firm. Annuities are used for a number of reasons, but about half (49%) of survey respondents indicate they…

Worried About Running Out of Money? New Treasury Rule Makes Longevity Annuities More Appealing

On July 4, an Arkansas woman celebrated her 116th birthday and was named the oldest confirmed living American. While that’s old by any standard, birthday girl Gertrude Weaver is actually the second-oldest person in the world—a sign of global longevity trends; we are living longer now than we ever have before… and paying for these…

5 Mistakes To Avoid When Shopping for Annuities

Annuities can be a great way to receive steady income in retirement, but because they are complex financial products, it’s best to do some research before purchasing one, financial planners advise. Estimate how much income your savings can generate using an Annuity Calculator. Here are five mistakes to avoid when shopping for annuities: 1. Investing…

The Lifetime Annuity – A Life Vest for Your Retirement

Imagine this: Bill, a 65-year-old man, has been getting ready to go on a big swim. He’s not completely sure how long this swim is going to last—although he has an approximate distance in mind—but he’s been preparing for it for decades. But without knowing exactly how long this swim will be, Bill isn’t sure…

The 3 Reasons a Lifetime Annuity is the BEST Retirement Investment

When you’re planning for retirement, you’re often trying to determine the best mix of investments for your retirement portfolio. There’s no one-size-fits-all solution, and your planning process has to take into account your own particular situation and needs. One potential investment you may want to consider is a lifetime annuity, and there are a few…

How Does A Lifetime Annuity Work: Lifetime Annuities Explained

No doubt you have heard of annuities.  In fact, if you are already preparing and planning for retirement, you may even have one. But you may be fuzzy on the details of what exactly a lifetime income annuity is, and how it works. Estimate how much income your savings can generate using an Annuity Calculator….

Can an Annuity Help You Generate More Retirement Income?

Closing the Retirement Income Gap PBS Newshour, November 2013 The difference between a safe annual retirement income and basic retirement expenses is known as the retirement income gap.  Facing an alarming decrease in American workers who have a pension to count on, many people approaching retirement age are wondering where they are going to be…