Bonds vs. Annuities: Focus on Costs
May 29, 2014

As more annuity products enter the market, how much should cost factor into clients' annuity decisions? Leading CFPs debate annuities vs. bonds during a recent panel discussion.

Comments (1)
What you are missing is that there are great GLWB products accumulating at 7% a year NET OF FEES on an GUARANTEED BASIS from Aa1-3 companies that-- in operation -- CHARGE FEES ONLY IF THE GUARANTEES are exceeded. Income can only step-up, not down. At retirement age, GWB kicks off 4.5% for life, even if it's 120. I'd like to see you build this in your basement!

What kinds of guarantees come out of asset allocation models anyway?? Credit? Reinvestment risk? Sequence of Returns? Excessive longevity? Exemption from Claims of Creditors?

The truth is this is no longer much of a contest.

Posted by Robert L | Thursday, June 05 2014 at 11:15AM ET
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