Bonds and cash investments aren't the only assets offering potentially higher income these days. Income annuities—insurance products offering a guaranteed lifelong retirement "paycheck"—are also offering highe
Commission-free annuities: Are they good for retirement? Many retirees are attracted to the concept of annuities because they can provide an income stream for the rest of your life, similar to the way defined benefit pension plans work. Annuities also allow for tax-deferred growth. However, ann...
With most types of annuities, especially fixed annuities, you are guaranteed to receive a specified income payment amount on a regular schedule. This can provide invaluable peace of mind as you'll know that you have money coming in to cover basic living expenses during retirement. Tax-deferred ...
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Are Annuities Being Overhyped as a Retirement Cure-All?The article provides analysis on the disadvantages of annuities for retirees in the U.S.Wall Street Journal - Eastern EditionTERGESENANNESCISMLESLIE
Annuities are designed to provide a steady cash flow for people during their retirement years to alleviate the fear of outliving their assets. These assets may not be enough to sustain theirstandard of living, however, so some investors may turn to an insurance compan...
Individual Retirement Account, or IRA. But that's not always the case, and some IRAs haveeven higherfees than 401(k)s. Moreover, since they're governed by a different set of laws, IRAs have relatively fewer investment protections, according to theCenter for Retirement Researchat Boston ...
“It does feel good to be earning money,” says Sallie Mullins Thompson, a certified public accountant and certified financial planner who has continued to work later in life. That cash can help supplement retirement savings, pay for life goals such as travel or be ...
Why a CDC? Retirement benefits emerging from CDC schemes are expected to average 70% higher than defined contribution (IDC) annuities and 40% higher than pensions provided by typical defined benefits (DB) schemes according to a guide by Willis Towers Watson. According to the same guide, collecti...
Why? Annuities are considered a retirement product by the IRS regardless of whether or not the contract is held in a qualified retirement plan (which usually isn’t a good idea, anyway). Even non-qualified annuities (those purchased with after-tax dollars and not held in a retirement account...