For many cash strapped seniors an annuity sounds like the perfect solution. And it can be if you think you’ll outlive your mortality date. The only trouble is that the insurance companies offering annuities have perfected estimating your mortality date based on factors like gender, birth year, where you live, where you were born, the age your parents died, and your health (or unhealthy) habits. One disadvantage of an annuity is that when you die there is nothing left for your heirs. On the other hand, with an insurance policy you (or your heirs actually) come out ahead if you live less than your mortality date. So in addition to Dennis Miller's advice in the following article you might … [Read more...]
How Inflation Can Reduce Your Annuity Income (and what you can do about it)
Even though this is written from a UK perspective, it holds true for the rest of the world, too. ~ editor Annuity Income and Inflation Inflation as defined by Wikipedia is "an average index used to measure the rise in the general level of prices of goods and services in an economy over a period of time" which in layman's terms means the average amount by which goods and services are increasing. Monetarism an as economic theory identifies keeping inflation low as the main goal in achieving sustained economic growth, as opposed to reducing unemployment. The reason for this is that whilst unemployment is a burden on the people without jobs, high inflation (it is argued) impacts the entire … [Read more...]
Sheltering Cash From Inflation
When Inflation heats up it can ravage your cash holdings and so of course that is why a portion of your portfolio needs to be in inflation hedges. But a side effect of inflationary forces is the added volatility it adds to markets. Navigating this added volatility involves having flexibility in your portfolio and flexibility comes from cash or cash equivalents. Unfortunately, cash equivalents are big losers during periods of high inflation. So what do you do? Fortunately, there is a solution that will provide liquidity and prevent the major part of the purchasing power erosion due to inflation. Plus provide good returns in the mean time. In today's report the author of "Keep What You … [Read more...]