Posts Tagged ‘ senior citizen annuities ’

Senior Finances 101: Understanding Annuities #5

Oct 14th, 2010 | By Sharon Shaw Elrod MSW EdD | Category: Senior Moments Blog

The Index Annuity is the final in the series SCJ is publishing about annuities. This is an attempt to distill the information about annuities for senior citizens so we all can understand what they are and whether or not they make investment sense for our individual circumstances.

In the mid-90s, insurance companies created still another kind of annuity that is based on index funds in the various stock markets. Index funds are a small group of mutual funds that are purported to be a gauge of the entire stock market, and are considered ‘safer’ investments than the gamble taken with non-index funds. Index Annuities start out just like others, a contract with an insurance company for a definitive time period. Then, the index annuity is based on one of the Indexes (S & P 500, Dow Jones Industrial Average, etc) and your annuity



Senior Finances 101: Understanding Annuities, #3

Oct 8th, 2010 | By Sharon Shaw Elrod MSW EdD | Category: Senior Moments Blog

We seniors spook ourselves a lot when it comes to understanding financial matters. We convinced ourselves the financial world would never make sense to us, so some of us just quit trying. Here’s a challenge: read this article about one aspect of senior financial planning, because I’ll bet you will understand it and find it of value.

SCJ started a series on annuities (there are five basic kinds) two days ago. An annuity is simply a contract between you and an insurance company; what that contract guarantees and requires is the issue we are addressing in this series of articles. Yesterday we looked at the kind of annuity where you invest a dollar amount (usually over $5000) and then wait for a period of years before you take any money out of the annuity; that’s called a Single Premium Deferred Annuity.