Click to login and read the full article.
Don’t have access? Click here to request a demo
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600
Abstract
Although it is generally agreed that income annuities (including both immediate and deferred income annuities) can help prevent investors from exhausting their assets during retirement, it is a common misconception among financial planners and wealthy investors that using income annuities will inevitably reduce the size of an investor’s estate. In fact, in many instances annuities are as likely to increase the size of an estate as to decrease it. In such cases, the effect of income annuities—when used appropriately—is a large reduction in the uncertainty associated with retirement planning, accompanied by a smaller but still significant reduction in the uncertainty associated with legacy planning. The authors demonstrate that annuities can be used both before and after retirement to reduce uncertainty surrounding the size of an estate, roughly maintain its expected size, and at the same time eliminate the risk of complete asset exhaustion during retirement.
- © 2013 Pageant Media Ltd
Don’t have access? Click here to request a demo
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600