Sentences with phrase «more mortality credits»

A longer deferral period will allow a client to buy a larger annuity payment because (1) assets have more time to grow; (2) there will be fewer years of distribution; and (3) more mortality credits are available.

Not exact matches

Mortality credits aren't available to you when you invest as an individual, which means the only way for you to get the same level of income an annuity offers is to invest more aggressively.

The upshot, though, is that unless you're willing to take on more investing risk — which also means accepting the possibility of running through your money while you're still alive — it's very unlikely that you can match an immediate annuity's guarantee of lifetime payments, which includes that extra bit of income that mortality credits provide.

(and, regarding «mortality credits», you assume I know more than I actually do....

Milevsky argues that even at today's rock - bottom interest rates, annuities should pay more than comparable fixed - income investments because of the built - in mortality credits.

Moreover, the paper gets its history wrong when it notes that «Total cancer mortality rates did not decline until 1990, 25 years after the identification of the effect of smoking on lung and other cancers...» Well, actually, it was more like 50 years, because the earliest studies to connect smoking and lung cancer were conducted not by NIH - funded scientists but by Nazi scientists in the run - up to World War II.4 By the logic of the PNAS paper, then, ought we to be crediting the Nazi health science agenda with whatever progress has been made on reducing lung cancer, rather than the incredibly protracted and difficult public health campaign (that, for the most part, NIH had nothing to do with) aimed at getting people to cut down on smoking?

Since insurance companies typically invest in relatively safe fixed - income securities, e.g., bonds, the added mortality credits in a longevity annuity can make it more efficient (higher return) over the long run that a bond portfolio.

Because of the mortality credits accrued during the deferral period, the time period between the purchase of a longevity annuity and when the longevity annuity payout begins, longevity annuities can be more efficient over the long run than immediate annunities, all else being equal.

Despite the fact that one research paper recently found Americans are more afraid of outliving their money during retirement than death itself, and economics research has long since shown that leveraging mortality credits through annuitization is an «efficient» way to buy retirement income that can't be outlived, the adoption of guaranteed lifetime income vehicles like a single premium immediate annuity purchased at retirement remains extremely low.