Press Release
FOR IMMEDIATE RELEASE May 7,2010
The fixed income annuity is a commonly misinterpreted asset. The insurance industry has done a better job at communicating the benefits of annuities than in the past. But the majority of Americans are still not fully aware of today’s annuities—with their greater flexibility and value to retirees. Given a re-evaluation of retirement portfolios, they can be a formidable asset class to re-dress volatility and hedge downside risk.
Jennifer Warren, author of the publication and managing director of the Retirement Security Institute, says, “In July 2007, the first edition was created as an educational intervention. The fundamental message is still intact in this updated 2010 edition, when knowledge is even more pressing. Presented in a consumer-friendly way, the information and ideas are based on well-researched information.”
A sampling of key ideas follow:
• Fixed income annuities are not “investments,” and one cannot lose principal due to market declines.
• Fixed income annuities are a safe asset class. Retirees concerned about market declines, or outliving their assets receive assurances and guarantees inherent in the contract with insurers.
• Annuities have liquidity options, and new product innovations continue to offer greater flexibility.
• With a fixed income annuity, that portion of the retirement portfolio becomes longevity insured, and slows down the complete burnout of a portfolio owing to longer years in retirement.
The virtue of the fixed income annuity is in its ability to provide ‘known’ income for the remainder of retirement years. With traditional corporate pension benefits on the wane and Social Security unable to completely fill the gaps, fixed income annuities assist in making a retirement portfolio longevity insured. Longevity risk, the risk of outliving one’s assets in retirement, is a real and potentially growing problem in America and other countries. Finding the optimal mix of financial vehicles for a secure retirement — whether it be CDs, stocks, mutual funds, bonds, or annuities— is imperative today.
About the Retirement Security Institute (RSI)
The RSI’s mission is to provide credible analysis and meaningful information about retirement security issues, focusing on health care and financial matters. The RSI is a knowledge company which produces a synthesis of research, information, and new ideas for both professionals serving the retirement market and retirees who need useful, straightforward information.
MEDIA CONTACT:
Jennifer Warren
jwarren@retirementsecurityinstitute.com
tel: 214-906-7695
Source: Retirement Security Institute