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Interest Rates

The Annuity as a Bond Alternative

In the past bonds have been effectively used as an additional asset class to reduce the risk of holding a 100% stock portfolio. The traditional 60/40 mix of stocks and bonds has defined the moderate portfolio for years, and today target maturity mutual funds are commonly used, which will increase the bond allocation as one nears retirement to reduce the overall portfolio risk. With today’s hist...
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Annuities’ Grand Design: Guaranteeing Income In Retirement

Longevity and good health should be the goal for all of us and it shouldn’t be adverse to our financial situation, but it can be. Because retirees are living so much longer, they also run the risk of outliving their portfolios, especially with today’s market conditions. Modern mortality tables show that there is a 50% chance that a surviving spouse will live to age 92 and a 25% chance that they wi...
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