Annuities for Today’s Retirement Realities
According to leading economists and academics, annuities can generate retirement income more efficiently than bonds for today’s retirees. In addition, they can ease the impact of a market downturn on a portfolio and create the opportunity for heavier allocations to equities for discretionary spending or legacy designations. Join this session – the first in a 5-part series – to understand how and why advisors are using commission-free
This session is the first of a new five-part annuity education series, featuring leading academics Wade Pfau, Ph.D., CFA, RICP® Professor and RICP®️, Michael Finke, Ph.D., Frank M. Engle Distinguished Chair in Economic Security, David Blanchett, PhD, CFA, CFP®, ChFC®, CLU®, and DPL Founder and CEO, David Lau.
A Debate on Whether RIAs Should Use Annuities in Retirement Plans
One of the most contentious topics among RIAs is whether to recommend annuities. While many will recommend a single-premium immediate annuity (a SPIA) or a deferred-income annuity (a DIA), those products represent only a small fraction of annuity sales. We are here to talk about whether RIAs should use the other 95% of annuity products for their clients in their retirement plans – specifically variable annuities, equity-indexed annuities and other related products.
Our discussion will take the form of an informal debate on the following proposition, “Resolved: Annuities should play a prominent role in most retirement plans.”
Understanding Variable Annuities In Retirement Planning
Variable annuities were created to give retirees access to lifetime income with the potential for growth. Today’s products offer a range of features such as liquidity, investment risk hedging, access to a risk premium, tax deferral, and longevity protection. This panel address the tradeoff of these product features and when they provide the greatest value to retirees. The best variable annuities offer reasonable-cost options that provide income, investment flexibility and downside protection when clients need them most. CFP and IWI CE credits pending.