Saturday, August 25, 2012

Build Your Own Pension Using Immediate Annuities


If you don't have a pension, or your pension is too small, consider creating your own pension using an immediate annuity (aka single premium income annuity).


Life Expectancies: Mortality Rates for 65 Year Old Males

mortality rates reason for immediate income annuities
Mortality Rates for 65 Year-Old Males


Here's another way to look at the life expectancy problem. The graph above shows the mortality rates for a hypothetical population of males who are exactly 65 years old. The bar at age 65 indicates that 1.7% of this group would be expected to die while still 65 -- i.e., before reaching age 66. The remaining bars show what percent of the original group is expected to die each succeeding year until age 100.

It's worth noting that

Wednesday, August 15, 2012

The Life Expectancy Problem: How Long Will You Live?

Being realistic about how long you will live, your life expectancy, can increase your chances of a successful retirement.

Life-expectancy: People are Living Longer

U.S. Life expectancy at birth (lifespan) since 1920
Life Expectancy In The United States

There is both good news and bad news about life expectancy. The good news is life spans are getting longer; life expectancy at birth has increased more than 15 years just since 1930. (see graph above. Click to expand.)

Increasing Life Expectancy is a Double-Edged Sword

The bad news is ... life spans are getting longer. One result of the dramatic decrease in mortality rates over the last century or so, is that retirees are spending more and more years in retirement. And, that means they are spending more and more years living off their retirement savings. While living longer is generally a good thing,

Wednesday, August 1, 2012

July 2012 Stock Market Update

Stock market (DJIA) monthly performance / closing prices for last 12 months
Dow Index Monthly Closes Through July, 2012

The Dog Days of Summer

The July stock market was, at least in my view, relatively uneventful.  Not much volatility -- just three days were plus or minus one percent -- and little "new news."


The elephants in the room continue to be a) European sovereign debt issues, b) the increasing possibility of a hard landing in China, and c) the struggling U.S. economy.  In addition, we're another month closer to the so-called "fiscal cliff" looming at the beginning of next year (when both severe cuts in U.S. government spending and higher tax rates are scheduled to go into effect). Finally, there is the uncertainty surrounding the upcoming Presidential election.

However, in the face of these continuing issues, the stock market