The Wall Street Journal Evaluates Variable Annuity Buybacks

There has been a lot of talk about variable annuity buybacks over the past year.  Basically, insurance companies are sending letters to people who own variable annuities offering to buy back their lifetime income guarantees.  There is a reason that insurers don't want these variable annuity contracts out there anymore; they are good for the consumer in most cases.  Variable annuity buybacks are one of three things that The Wall Street Journal evaluated in Anne Tergesen's article "IRAs,... Read More

NAFA Calls 2014 “The Year of the Fixed Annuity”

The National Association for Fixed Annuities (NAFA) has declared 2014 "The Year of the Fixed Annuity" in an article for their Annuity Outlook Magazine.  Their president, Kim O'Brien, likened the outlook for fixed annuities to the Chinese New Year calendar character, the Horse.  2014 is the year of the Horse in Chinese tradition, symbolizing constant effort to improve.  O'Brien says that the fixed annuity industry does just that by trying to improve peoples' lives through annuity guarantees,... Read More

Annuities Offer Guaranteed Income, Tax Deferral, & Safety

There are a multitude of reasons that annuities are good for your financial future.  In "5 Reasons To Include Annuities In Your Estate Planning," the Financial Samurai Sam Dogen says that people aren't buying annuities because they don't know much about them.  Include annuities in your estate planning not only for the income they provide, but also for the money they can leave to beneficiaries.  Guaranteed income is likely the most popular reason that people buy annuities.  Annuities protect... Read More

The IRI Predicts An Increase for Annuity Sales in 2014

We're all making predictions for the new year.  It might be how long our resolutions will last or where the interest rates will go.  I have found a number of predictions about annuities, including an article in Life Health Pro summarizing the Insured Retirement Institute's (IRI) 2014 forecast.  Maria Wood tells us what the IRI expects to see happen in the annuity industry this year in "Annuities: 4 predictions for 2014."First of all, the IRI expects an increase in annuity sales.  2013 was... Read More

Annuities Are An Effective Income Supplement in Retirement

In "Here's What You Need to Know About Annuities," Donna Fuscaldo of Fox Business says that annuities are an effective supplement to pay your basic expenses in retirement.  You should definitely max out your retirement savings plan contributions and diversify your financial retirement strategy.  Take into account any pension income or Social Security income first, then use some of your retirement savings to generate an income stream in retirement that will bridge the gap between the first two... Read More

Deferred Annuities Offer Tax-Deferral and Income Guarantees

I recently read a refreshing, and very honest, article about annuities that I wanted to share with Annuity FYI's readers.  In Benefits Pro's "2 biggest arguments in favor of annuities," John L. Olsen and Michael E. Kitces talk fairly about annuities.  The products are neither good nor bad.  There should not be sides taken and arguments over annuities.  Annuities are tools and should be viewed as such.  For some people they are the right tool to help meet their financial goals, but for... Read More

The Good and Bad of the Annuity Business in 2013

As 2013 comes to a close, it's a good time to evaluate what you've done over the year and see what changes you'd like to make for 2014.  This is true for annuities too.  Stan Haithcock evaluated annuities right before Christmas for his Marketwatch article, "Have annuities been naughty or nice this year?"  Mr. Haithcock definitely has a way with words and wrote an interesting piece, which included Santa pondering whether annuity carriers would be getting presents or coal in their stockings at... Read More

Variable & Indexed Annuities Likely to See Sales & Development Increases in 2014

Investment News' Darla Mercado predicts that the "New year could bring a boon for annuities."  She mentions variable and indexed annuities in particular.  Increasing taxes and interest rates are likely to spark not only sales of variable and indexed annuities, but also development of new products.  Rising interest rates typically bring about increases in product development.  We saw the biggest increases in May and June of this year, although the Fed says that they will keep the benchmark... Read More

Income Annuities Eliminate Longevity Risk

New York Life recently published the article "12 things you need to know about Income Annuities" on their website.  This basic information is very useful for answering common consumer questions about this type of annuity.  Income annuities work by using some of your retirement savings and turning it into a stream of guaranteed lifetime income.  You make a one-time payment, or multiple premium payments, to an insurance company.  They will then send you income checks either monthly,... Read More

Indexed Annuities Are A Good Substitute For Less Desirable Bonds

Many people consider a bond/equity mix to be the standard of retirement income.  Unfortunately for them, bonds are becoming less desirable for many reasons.  Increases in inflation and interest rates are not good for bond prices.  Add to that the fact that equities are at all-time highs and corrections are likely in the near future and the negatives are stacked against bonds right now.  Indexed annuities with guaranteed minimum income benefits are a great alternative to bonds.  They are... Read More - Prefooter

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