In last month’s newsletter, I described a product called a Guaranteed Minimum Withdrawal Benefit (GMWB) annuity, and I gave an example of how it works. A GMWB annuity is one of several types of products that more broadly fall under the name, Guaranteed Minimum Living Benefits. Each type of product in this category works in [Learn more…]
Guaranteed Minimum Withdrawal Benefit Annuities
Suppose a financial advisor told you about a financial product that would enable you to invest in the stock market without ever having to worry about poor investment returns, or losing your principal. Yes, that’s right. Invest in stock and bond mutual funds inside of this product, and, even if they tank, you won’t lose [Learn more…]
Buying a Longevity Annuity
In my previous two posts, I compared how a longevity annuity differs from a traditional life annuity (here) and I described a Qualified Longevity Annuity Contract (QLAC), a special type of longevity annuity (here). Now let’s walk through the mechanics of buying a QLAC. An Example Larry and Andrea are two healthy, financially-savvy 65 year [Learn more…]
What is a Qualified Longevity Annuity Contract?
Last month, I explained the differences between an immediate life annuity (guaranteed lifetime payments that begin immediately in exchange for a lump-sum premium) and a longevity annuity (guaranteed lifetime payments that begin at some future date in exchange for a lump-sum premium). In this article, I will discuss a special type of longevity annuity called [Learn more…]
Understanding Longevity Annuities
As I promised in my June blog, this month I’m focusing on a topic covered during the National Association of Personal Financial Advisors Spring conference: longevity annuities. (Full disclosure: Sensible Financial® does not sell insurance. Sensible Financial is a fee-only financial planning firm). Before getting into the specifics of longevity annuities and how they might [Learn more…]
Boston Globe: Annuities regain a bit of luster as retirements get longer
Rick Miller was quoted in a recent Boston Globe article: Annuities regain a bit of luster as retirements get longer You can read about it here.
Using Annuities to Get the Most Out of Your Nest Egg
This was originally published in the May, 2006 edition of Retired Investor, a monthly international investment journal. Using Annuities to Get the Most Out of Your Nest Egg So, you are thinking about retiring…or maybe you have already retired. Your earned income will be lower than you are used to, maybe a lot lower. Yet, you [Learn more…]