Annuity

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DailyFinance  12 hrs ago  Comment 
Filed under: Personal Finance, Retirement Living, Retirement Plans, Annuities, Planning Alamy Annuities are among the most controversial products in the investment world, with proponents and critics fiercely disagreeing about their benefits and...
Clusterstock  Sep 17  Comment 
This post is sponsored by Fisher Investments.  Here is some free financial advice that is extremely valuable: If the investment you’re looking to buy carries a stiff penalty to sell, avoid it. Variable annuities, for example — it’s one...
Financial Times  Sep 11  Comment 
Insurers say purchases were down 32% in the second quarter after Budget measures relaxed the requirement to buy retirement income products
Wall Street Journal  Aug 20  Comment 
Responding to customers' complaints, some states are putting a spotlight on how financial advisers sell variable annuities—and the results aren't pretty.
Financial Times  Aug 17  Comment 
Investors should not expect insurers’ profit and loss accounts to reveal the decline, instead they should look at the value of new business
Forbes  Aug 11  Comment 
One of the biggest fears most retirees have is outliving their money.
Forbes  Aug 11  Comment 
Economists love annuities, but retirees just won't buy them. Here's why.




 
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A financial product sold by financial institutions that is designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time. Annuities are primarily used as a means of securing a steady cash flow for an individual during their retirement years.

Annuities can be structured according to a wide array of details and factors, such as the duration of time that payments from the annuity can be guaranteed to continue. Annuities can be created so that, upon annuitization, payments will continue so long as either the annuitant or their spouse is alive. Alternatively, annuities can be structured to pay out funds for a fixed amount of time, such as 20 years, regardless of how long the annuitant lives.

Annuities can be structured to provide fixed periodic payments to the annuitant or variable payments. The intent of variable annuities is to allow the annuitant to receive greater payments if investments of the annuity fund do well and smaller payments if its investments do poorly. This provides for a less stable cash flow than a fixed annuity, but allows the annuitant to reap the benefits of strong returns from their fund's investments.

The different ways in which annuities can be structured provide individuals seeking annuities the flexibility to construct an annuity contract that will best meet their needs.

All annuities have a free look period, a death benefit, guarantees, and annuitization options. Most have surrender periods.

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