"One thing I emphasize with clients is the flexibility that comes with a lump sum payment," saysDan Danford, CFP, of Family Investment Center in Saint Joseph, Missouri. A pension payment annuity "is fixed (occasionallyCOLA-indexed), so there is little flexibility in the payment scheme. But ...
To ensure the success of a pension plan under a self-contained defined contribution (DC) retirement plan, the inclusion of foreign assets in a local pension portfolio could be beneficial for risk diversification and the efficient improvement of a fund’s investment performance during its accumulation...
depending on thetype of annuity you choose. Another option is to use a portion of your retirement portfolio to purchase an immediate annuity and receive regular retirement income while the rest of your portfolio grows. Be aware that there are different types of annuities. They can becomplicated ...
This sum includes several components for the pension fund: (1) hedging cost, i.e., the cost of the call option that hedges the exposure of Z% of the benchmark index return; (2) operating expenses, including fees paid by the pension fund for purchasing the option; and (3) the fee (...
(2) to investigate the model that best fits the pensioners’ mortality data; (3) estimate the longevity risk (LR) associated with these forecasted mortality values in the pension fund, and (4) determine the economic impact of the risk (LR) on the likely annuity payments within the ...