Sentences with phrase «than the annuity provides»

Question is, though, can you get the same monthly income (or more) than the annuity provides by investing on your own?

Not exact matches

Fortunately, the type of annuity you're asking about — an immediate annuity — is (by annuity standards at least) the easiest to understand and, to my mind the type with the greatest potential for helping people who want more guaranteed lifetime income than Social Security alone will provide.

«I don't think paying 100 basis points per year for an investment portfolio that provides no mortality credits and exposes retirees to longevity risk is better than a competitively priced variable annuity.»

A life income gift (such as a charitable gift annuity or a charitable remainder unitrust) is likely to provide higher income than either a certificate of deposit or a savings account.

No such annuity shall provide for more than the total difference in retirement income between the retirement benefit based on average monthly compensation and creditable service as of the member's early retirement date and the early retirement benefit.

No such annuity may provide for more than the total difference in retirement income between the retirement benefit based on average monthly compensation and creditable service as of the member's early retirement date and the early retirement benefit.

But if you want more assured income than Social Security alone can provide, then putting a portion of your savings into an immediate annuity may make sense.

That is, the annuity increases your income at year N if it provides you with a withdrawal rate bigger than wfail (N).

Or, since the annuity provides higher payments, you could choose to invest less money in the annuity than in the bond fund and receive the same size monthly payments.

An IRA provides much more control over your investment than does a variable annuity.

Variable annuities provide tax deferral and an opportunity to take on more risk than a fixed annuity in return for greater growth.

But is a systematic withdrawal strategy likely to provide more income over retirement than simply purchasing an immediate annuity?

But if you'd feel better going into retirement with more steady and reliable income than just what Social Security and any pension will provide — or if you'd like more assurance that you won't come up short in the future — then an immediate or longevity annuity just might be worth considering.

Although the state insurance guaranty system operates differently than the FDIC's federal deposit insurance program, it's similar in that it provides a safety net of sorts for owners of insurance policies and annuities in the event an insurer becomes insolvent.

The investment options may provide you with potentially more income than immediate fixed annuities, but your income payments will be subject to market fluctuation.

An immediate annuity's ability to transfer money from people who die early to those who die late is largely the reason that a recent study by former U.S. Treasury official Mark Warshawsky concluded that while an annuity didn't always provide more retirement income than using the 4 % rule or other type of systematic withdrawal, it did so often enough that «it is hard to argue against a significant and widespread role for immediate life annuities in the production of retirement income.»

Other things you can consider over time: you could look into setting up a variable annuity if you need more income down the road than what's provided by your retirement accounts.

If we balance the potential returns and the potential risks, we find that fixed - rate or fixed index annuities will be principle protected and provide growth that may well be lower than the growth of stocks and mutual funds in particular.

Rather than address risks associated with each specific type of annuity, I'll be providing a more generalized summary of risks.

The MetLife research shows DC plan participants who selected an annuity were more likely than those who selected a lump sum to have been provided with a paper statement illustrating how much income their DC plan would provide in retirement (55 % vs. 28 %).

And if you decide that you would like more guaranteed lifetime income than Social Security alone will provide, you can always consider converting a portion of your nest egg to an immediate annuity in return for lifetime monthly payments.

A contract of endowment insurance either for another contract of endowment insurance that provides for regular payments beginning at a date not later than the date payments would have begun under the contract exchanged, or for a non-qualified annuity contract.

Fixed indexed annuities can offset those shortcomings: In addition to earnings that grow on a tax - deferred basis, they guarantee a set interest rate and provide exposure to stock market returns, which tend to be higher than bond market returns, according to Ibbotson's white paper.

So ideally you don't want to devote any more of your savings to an annuity upfront than necessary to get the security and guaranteed income it can provide.

Although payments from an indexed annuity starts out lower than a level annuity, it provides for an annual increase.

For example, an annuity generally makes the most sense if you feel you want more guaranteed lifetime income to cover essential living costs than Social Security and pensions alone can provide.

But if you want more assured income than Social Security alone will provide, it makes sense to at least consider an immediate annuity.

In retirement, throwing an immediate annuity into the mix can even make sense if you want more assured income than Social Security alone will provide.

«Consumers are more likely to say they value the benefits an annuity can provide than they say they like annuities themselves.

A variable annuity is a contract that provides fluctuating (variable) rather than fixed returns.

Index - linked annuities provide the opportunity to participate in the market's growth potential by tracking a market index, rather than investing directly in a chosen index or indices.

Annuities certainly aren't for everyone, but generally I think people who feel they need more guaranteed income than Social Security alone can provide should consider putting some (but not all) of their savings into two types of annuities that are relatively easy to understand and evaluate: immediate annuities, which convert a lump sum of savings into monthly payments that begin immediately, and longevity annuities, which allow you to convert an investment now into payments that will start later, say, 10 or more years down Annuities certainly aren't for everyone, but generally I think people who feel they need more guaranteed income than Social Security alone can provide should consider putting some (but not all) of their savings into two types of annuities that are relatively easy to understand and evaluate: immediate annuities, which convert a lump sum of savings into monthly payments that begin immediately, and longevity annuities, which allow you to convert an investment now into payments that will start later, say, 10 or more years down annuities that are relatively easy to understand and evaluate: immediate annuities, which convert a lump sum of savings into monthly payments that begin immediately, and longevity annuities, which allow you to convert an investment now into payments that will start later, say, 10 or more years down annuities, which convert a lump sum of savings into monthly payments that begin immediately, and longevity annuities, which allow you to convert an investment now into payments that will start later, say, 10 or more years down annuities, which allow you to convert an investment now into payments that will start later, say, 10 or more years down the road.

With this financial strategy software, you can also see what the minimum rate of return needs to be on a normal investment portfolio to get the same or more lifetime income than a fixed or variable annuity would provide.

So immediate annuities are typically chosen to provide income rather than grow money for retirement.

Income annuities are designed to provide guaranteed income, rather than to help you accumulate retirement savings.

Avoiding Tax Trap in the Exchange The very common reason why many policyholders would opt to change their old annuity policy and old life insurance policy in exchange to a new annuity policy and new annuity policy is mainly because a new policy is most likely will perform much better compared to the old policies since nowadays there are already improvements when it comes to mortality which will provide a lower insurance cost, a lesser administration expense on the policy which will provide lower cost, improvements in the said underwriting with lower cost, improvements in the health of the insured which will trigger lower cost, improvements in interest crediting which will perhaps provide higher rates of interest as well as the interest linked in an index and to some cases, a worsened health which may cause higher than the usual annuity payments.

All Ulips, other than pension and annuity products are mandated to provide a minimum mortality cover or a health cover.

(East Hartford, CT)-- April 5, 2006 — PFIC Corporation, a specialist in the distribution of insurance and investment products through financial institutions, has selected Vantis Life Insurance Company to provide life insurance and annuity services to its more than 100 financial institution clients.

An annuity that provides you with income payments for a specific period of time, such as 10 or 20 years, rather than a lifetime.

Pension maximization involves determining whether or not a life insurance policy can provide a comparable replacement income for your surviving spouse for less than the monthly reduction of selecting a joint - life annuity plan.