A Ladder of Annuities Can Hedge Your Bets


	A Ladder of Annuities Can Hedge Your Bets

rmowery

10-9-2008 2:18 AM

135 views

tags:

annuities, hedge, life, insurance, economy, income, investment

rmowery says:

This is something I don't really understand -- Annuities, but from the outside looking at this, it looks like another area where things could crash?

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://www.clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/36f9edec-1f71-4efd-a03c-6748011afb81/F832B7AB-96B5-428F-84AD-31529C0ACDAA/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.kiplinger.com/features/archives/2008/10/krr_ladder_of_annuities_can_hedge_your_bets.html" href="http://www.kiplinger.com/features/archives/2008/10/krr_ladder_of_annuities_can_hedge_your_bets.html" style="font-size: 11px;">www.kiplinger.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.kiplinger.com/features/archives/2008/10/krr_ladder_of_annuities_can_hedge_your_bets.html"><DIV class="story_mtitle">A Ladder of Annuities Can Hedge Your Bets</DIV></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.kiplinger.com/features/archives/2008/10/krr_ladder_of_annuities_can_hedge_your_bets.html"><DIV class="story_subtext">
				Smooth out the highs and lows of interest rates, and payouts, by staggering annuity purchases.</DIV></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.kiplinger.com/features/archives/2008/10/krr_ladder_of_annuities_can_hedge_your_bets.html"><P>In today's low interest-rate environment, locking up a big chunk of your portfolio in a fixed immediate annuity may not seem wise. But if you like the security of guaranteed payments and you believe rates will rise in coming years, you can hedge your bets by laddering annuities.</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.kiplinger.com/features/archives/2008/10/krr_ladder_of_annuities_can_hedge_your_bets.html"><P>As with ladders of bonds or certificates of deposit, the strategy calls for buying fixed immediate annuities over a period of time. Instead of spending a lot of money on a single annuity that locks you into one rate for your lifetime, you split your money among several. Perhaps you buy an annuity every year for five years, or every five years over the next 15 years.</P></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/F832B7AB-96B5-428F-84AD-31529C0ACDAA/blog/" title="blog or email this clip"><img src="http://content8.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>