Longevity Insurance - Business Week Article
... you'll be able to withdraw a greater percentage of your savings earlier in retirement than would otherwise be prudent—some 7% a year, versus 4%, says Shane Chalke, CEO of Seven Squared Financial of Middleburg, Va., which is developing annuity products.
Longevity insurance also lessens one of the biggest problems associated with conventional annuities: the fact that, once you sign over your money, you (or your heirs) can't get it back, even if you die before collecting a dime.
Make sure you're comparing annuities on an apples-to-apples basis.
"Buy when you retire,"
Figure out how much of your essential expenses you can cover with Social Security, pensions, and other forms of guaranteed income—and consider buying coverage for the rest. Don't put too much into this basket. "Typically, if you allocate 10% to 15% of your portfolio to this, it will give you about two-thirds of the benefit you'd get if you were to annuitize your entire portfolio," says Scott. All told, it's a good deal, provided you live long enough to collect.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.