Tag Annuities

An Overview of Annuities

“A brief introduction as background for other posts about annuities”

An annuity is a contract between you and an insurance company whereby the insurance company will pay you a certain amount of money, on a periodic basis, for a specified period. For example, you might pay an insurance company ten thousand dollars and in return you will receive 100 dollars a month for 10 years.
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The case for Rotating Annuities

“Providing flexibility around retirement”

Annuities have received a bad press recently. But from the perspective of the recipient (or investor) they are a perfect way of matching assets and liabilities – pick the right type of annuity and you receive a predictable┬ástream of income until you die, regardless of when this occurs.

Furthermore, for people who are tempted to dip into and spend their savings, rotating annuities (one might compare them to a dividend reinvestment plan) can be a technique to control this habit and preserve wealth.

To my knowledge, no company actually offers a rotating annuity as a product. But is is possible to create one synthetically. Here’s how: Read more

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