Social Security will have to cut benefits by 2034 if Congress does nothing to address the program’s long-term funding shortfall, according to an annual report released Tuesday by the Social Security and Medicare trustees.
OK, so it’s not exactly “fun.” But a new report says retirees who convert their savings into guaranteed lifetime annuities effectively double the amount they are willing to spend each year, on themselves and their families.
Over the past few years, economists have expended a lot of time and energy attempting to explain what they call ” the annuity puzzle.” The puzzle is this: A guaranteed lifetime income is a valuable thing (especially if it comes with regular cost-of-living adjustments), and people who receive one through a traditional state or corporate pension are generally very happy with it.
16 Pages Posted: 7 Oct 2009 Last revised: 6 Jan 2011 Date Written: December 27, 2010 * We offer the first empirical exploration of fixed indexed annuity returns based upon actual contracts that were sold and actual interest that was credited. * Annuity returns have been competitive with alternative portfolios of stocks and bonds.
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Strong negative reaction to a prominent investment adviser’s offensive remarks at an industry conference earlier this week could signal a change in what kind of language and atmosphere will be tolerated at such gatherings. Ken Fisher, founder of Fisher Investments, reportedly laced his fireside chat at the Tiburon CEO Summit in San Francisco with references to genitalia, seducing women and taking drugs, among other awkward topics.
As we approach the end of our working lives, it’s natural to look forward to having more free time and perhaps finally getting around to doing some things we’ve always wanted to do. It’s also natural to worry about whether we will have enough money throughout our retirement.