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Category: Annuities

Guaranteed Minimum Withdrawal Benefit Annuities – Part 2: The solution to rock solid financial security? Or too good to be true?

August 25th, 2016 by

In last month’s newsletter, I described a product called a Guaranteed Minimum Withdrawal Benefit (GMWB) annuity, and I gave an example of how it works.  A GMWB annuity is one of several types of products that more broadly fall under the name, Guaranteed Minimum Living Benefits.  Each type of product in this category works in […]

Guaranteed Minimum Withdrawal Benefit Annuities

July 27th, 2016 by

Suppose a financial advisor told you about a financial product that would enable you to invest in the stock market without ever having to worry about poor investment returns, or losing your principal.  Yes, that’s right.  Invest in stock and bond mutual funds inside of this product, and, even if they tank, you won’t lose […]

The Other One Percent, Part Three (The Value of Waiting)

March 29th, 2016 by

This Part 3, of a 3-part series, read the other parts here: Part 1, Part 2. In my previous two articles, I talked about both the relatively small number of Americans who delay receiving Social Security until age 70 (the age that would maximize their benefit), here, and how a breakeven analysis of Social Security […]

The Other One Percent – Part II

February 29th, 2016 by

This is Part 2, of a 3-part series, read the other parts here: Part 1, Part 3. In my previous article, I noted the (surprising) fact that although most financial planners recommend people delay filing for Social Security until age 70, when the benefit will be highest, only about 1% of Americans actually do this. […]

What is a Qualified Longevity Annuity Contract?

August 18th, 2015 by

Last month, I explained the differences between an immediate life annuity (guaranteed lifetime payments that begin immediately in exchange for a lump-sum premium) and a longevity annuity (guaranteed lifetime payments that begin at some future date in exchange for a lump-sum premium).  In this article, I will discuss a special type of longevity annuity called […]

Understanding Longevity Annuities

July 28th, 2015 by

As I promised in my June blog, this month I’m focusing on a topic covered during the National Association of Personal Financial Advisors Spring conference: longevity annuities. (Full disclosure: Sensible Financial® does not sell insurance. Sensible Financial is a fee-only financial planning firm). Before getting into the specifics of longevity annuities and how they might […]