Annuity FYI Blog

When buying an annuity, it’s very important that the insurer providing the product is stable. Doing so minimizes the risk that you will lose part or all of your investment. Ratings are a good way to find out about a company’s strength. Here are TheStreet.com’s 10 strongest annuity insurers, as reported by Melissa Gannon:

1. Teachers Insurance and Annuity Assocation of America (TIAA-Cref)
2. State Farm Life Insurance Company
3. Country Life Insurance Company
4. State Farm Life and Accident Insurance Company
5. American Family Life Insurance Company
6. New York Life Insurance and Annuity Corporation
7. Massachusetts Mutual Life Insurance Company (MassMutual)
8. Pacific Life Insurance Company
9. New York Life Insurance Company
10. Fidelity Investments Life Insurance Company

On The Huffington Post, Dan Solin writes that immediate annuities are a less publicized yet suitable investment for retirees or those about to retire. He cites evidence that people who invest in an immediate annuity as part of their retirement portfolio are less likely to outlive their savings, a big concern for baby boomers.

Several companies offer immediate annuities, including:

• Vanguard
• Fidelity
• Charles Schwab
• TIAA-CREF

The Insurance and Financial Advisor recently reported good news for TIAA-CREF clients with a TIAA Traditional Annuity. An executive VP from the company confirms that the guaranteed fixed annuties will provide payouts in 2009 that are equal or greater to the income recieved in 2008. 

According to TIAA, it can afford to offer steady returns in a fluctuating market because the Traditional General Account backing the annuities is extremely diversified (no more than 1% in a single investment) and has therefore suffered less from market swings.