Posts Tagged ‘ seniors invest in 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 #4

Oct 12th, 2010 | By Sharon Shaw Elrod MSW EdD | Category: Senior Moments Blog

We hope this series on annuities helps you understand them better, and provides an option to consider as you review your investment strategy with your financial advisor. Senior citizens need design their investment strategy carefully to insure adequate retirement income as much as it is possible to do that.

This article addresses variable annuities. This kind of annuity developed as a result of insurance companies wanting to get in the act with mutual funds. As with all annuities, the variable annuity is a contract with an insurance company. Time periods are defined by the contract as well.

What is different with variable annuities is the money you deposit is used to purchase mutual funds. Some