Making the Immediate Annuity vs. Investment Portfolio Decision

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Understanding Immediate Annuities

Immediate annuities can be a viable option for retirees who don't want to manage their money but want a guaranteed income for the rest of their lives. In some cases, an immediate annuity may even provide more income than an investment account.

Manage Retirement Income by Adding Longevity Insurance to the Portfolio

Traditional portfolios may not be the best way to allocate assets when it comes to planning for retirement income. Stocks, bonds, and cash do not take into account longevity risk and the portfolio's random time horizon. Instead, a combination of conventional asset classes and insurance products may be the best way to accommodate clients' income needs and legacy goals.

The Zone System for Choosing Retirement Income Products, Part 1

How do you decide which product to use when your client needs lifelong income—especially if his retirement savings aren't what they should be? One advisor classifies his clients into zones to decide whether to go with an investment portfolio or buy a life or variable annuity. Here is his system for making these crucial product decisions. Part 1 of 2.

Laddering Annuities Could Resolve Retiree Income Issues

Retirees want it all: cash, security, plenty of income, and a little left over for the kids. Laddered annuities may be one way to accommodate their competing desires. Not only do account values beat traditional stock/bond portfolios in the long run, but the technique accommodates boomers' changing needs as retirement lengthens.