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The Importance of Annuities

By Gerry W. Beyer

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Whentrying to solve your lifetime income needs, it may be best to “do as the Romansdid.”  The Romans instituted the originalSingle Premium Immediate Annuity (SPIA) structure, which still prevails to thisday as the best annuity option.  Whilemany agents are choosing to sell variable and fixed-indexed annuities, the bestand most efficient strategy for guaranteed lifetime income is the SPIAstructure or the newer Longevity Annuities. Similar to SPIAs, Longevity Annuities activate the income stream on acertain future date instead of immediately. Both lifetime income solutions “have no annual fees and pay lowcommissions to the agent when compared with most deferred products.”

See Stan Haithcock, Do as the Romans Did – With Annuities,Market Watch, June 4, 2013.

Special thanks toJim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringingthis article to my attention.

Posted in:
Estate Planning - Generally