Even So-Called Simple Annuities May Be More Complex Than You Think
May 24, 2023 by Allan Roth
The more complex the annuity, the worse it typically is for the consumer. But even so-called simple annuities have important distinctions. Here, I examine two kinds of simple annuities: single premium immediate annuities (SPIAs) and multiyear guaranteed annuities (MYGAs). I just bought the latter for myself but read on before you do the same for a client.
SPIAs. Think of a SPIA as buying a pension. Your client turns over some of their money to an insurance company which promises to pay a defined sum of money every year for…
Originally Posted at Barron's on May 23, 2023 by Allan Roth.
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