Annuities

Annuities are an insurance product that guarantee income. Explore the pros and cons of lifetime annuities, the best kinds, and more.

When you purchase an annuity, you trade a fixed sum of money for a monthly paycheck for a predetermined period of time or for your remaining lifetime (no matter how long that might be).

Longevity is one of the risks that annuities protect you from. Inflation, stock market risk, long term care costs, and more are some of the other risks that can be covered by annuities.

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fixed annuity

Are Fixed Annuities a Good Fix for Your Retirement Plan?

It appears that more consumers are turning to fixed annuities as a source of income in retirement, and demand for the product doesn’t seem likely to slow any time soon. Can a fixed annuity fix your retirement plan? When you buy an annuity, you are exchanging a lump sum of money for an agreed upon…

January 18, 2016
Annuity

Avoid These 5 Big Annuity Mistakes

People seem to either love annuities or hate them.According to Kiplinger, only about eight percent of Americans get any sort of retirement income from private annuities, (even though there are some definite benefits to owning one). The problem might be the misconceptions surrounding them. If you don’t go in with your eyes open, an annuity…

October 23, 2015
annuities

Why Annuities Are the New Must Have Financial Product

Believe it or not, different financial strategies can be in style or out.  But unlike the arbitrary whims of fashion, financial trends usually have very logical reasons for being popular. Annuities are not new players in the retirement planning game. They are an insurance product that many have used successfully to guarantee income in retirement.…

October 15, 2015
Annuities pros and cons

Annuities Pros and Cons: Are they More Good than Bad?

There appear to be only two annuities camps: Those who love them, and those who hate them. It’s not that cut and dried, though. Any investment has its pros and cons. The same applies to annuities, and there might be one that suits your retirement plan perfectly. If you’re thinking about expanding your retirement portfolio,…

October 6, 2015

Annuities: The New Pension and Why You Need One

Retirement times are changing, and gone are the days when workers could rely on steady pensions to take them through their aging years. Indeed, fewer people are retiring with the promise of a pension, or regular payment made during a person’s retirement from an investment fund to which that person or his or her employer…

August 5, 2015
Buying an annuity

Why Buying an Annuity is Safer Than Going it Alone

Spend money on an annuity, and you could save money in the long run. There’s an age old theory that says if you can insure yourself through savings, you’re better off than purchasing insurance from someone else. Buying an annuity is essentially buying an insurance policy. So might it be a good idea to fund…

July 22, 2015
Retirement options

An Annuity Calculator Might Reveal Better Retirement Options

When it comes to annuities, there tend to be two sides: those that love annuities and incorporate them into their retirement portfolio, and those that think they are a bad investment. As with any financial decision, it is important to get all of the information you need to make an educated decision on whether or…

July 6, 2015
Retirement

How Annuity Rates Can Dramatically Alter Your Retirement

Annuities can be a great addition to any retirement plan, and many people decide to invest in annuities because they can offer higher payouts than other investments and typically have less risk. One thing to consider before buying an annuity is how annuity rates will affect your investment and, ultimately, your retirement income. Annuity rates…

June 10, 2015
Retirement plan

Should an Annuity be in Your Retirement Plan?

Many people decide to include annuities as part of their retirement portfolio. These investments can often be a great way to complement other retirement income, such as pension plans and Social Security payments. But is an annuity right for you? It’s important to understand the advantages and disadvantages before investing.     Advantages of Annuities…

May 22, 2015
Annuity

Which Lifetime Annuity Offers the Most Flexibility?

Though annuities can be a valuable part of your overall retirement portfolio, not all annuities are the same. Some annuities have oppressive terms which may not offer you the best opportunity to reach your retirement income goals. Other types of annuities are more flexible, offering account holders the ability to customize their experience. Annuities are…

May 12, 2015

What is an Annuity? It’s the Defensive Line for Your Retirement Plan

When it comes to preparing for retirement, most Americans are all about saving, saving, saving. But in financial planning — as in sports — playing defense is just as important as playing offense.  And annuities can provide a good defense. Still, more than half of Americans (55%) do not believe that protecting their assets is…

April 24, 2015
Annuity

Worried About Low Interest Annuity Rates? 4 Strategies for Better Returns

In recent years, many people have decided to invest in annuities as part of their financial plan in retirement. Payouts for these investments are typically better than other income-producing investments because those who purchase annuities pool their mortality risk with other annuity purchasers. Annuities can be a confusing product.  Learn about the pros and cons…

March 13, 2015

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…

February 23, 2015

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? …

January 14, 2015

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…

January 9, 2015
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)…

January 4, 2015
Annuity calculator

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…

December 18, 2014
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…

December 1, 2014

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,…

November 11, 2014

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…

October 30, 2014

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…

October 29, 2014

What is the Right Age to Purchase an Annuity?

Annuity purchasers are getting younger. 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 – a type of insurance product that pays out…

October 1, 2014

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…

September 2, 2014
Annuity

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…

September 2, 2014

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