Dennis Wagner Arizona Republic Published 10:00 p.m. UTC Aug 17, 2018 Each year, Americans pour billions of dollars into a curious financial product that, as it's sometimes advertised, seems too good to be true. Some companies tout returns of up to 50 percent over five years, with the claim that consumers won’t lose their original investment even if the stock market crashes. The products, known as “fixed-indexed annuities” or FIAs, function like life insurance in reverse: The purchaser sets aside a safe nest egg, accruing interest, and after a waiting period collects regular payments until death. It's a pitch that appeals to retirees. Yet Anil Vazirani, a Scottsdale, Arizona, financial adviser who has taken an intense interest in FIAs, says the advertising often misleads consumers. And the contracts they sign are so full of jargon, caveats and options, they are impossible to fathom without legal training or a finance degree. Vazirani … [Read more...] about Fixed-indexed annuities promise a lot, but return on investment can be far lower than advertised
20 year term life insurance rate chart
The Dangerous Mistake 55% of Near-Retirees Are Making
Millions of retirees today collect Social Security, many of whom have come to rely on it as their primary source of income. But for many seniors, depending too heavily on Social Security means struggling to pay the bills. Though Social Security can certainly help retirees stay afloat financially, it cannot serve as their main income stream, especially given the way costs like healthcare keep climbing. Unfortunately, more than half of today's older workers are at risk of falling into the same trap so many current retirees have landed in. In a new study by the Nationwide Retirement Institute, 55% of adults 50 and over who plan to retire in the next 10 years say that Social Security will be their primary source of retirement income. And that's nothing more than a recipe for disaster. Image source: Getty Images. You need more than Social Security One major Social Security myth that hurts so many seniors is the notion that it's designed to sustain retirees on its own. In reality, Social … [Read more...] about The Dangerous Mistake 55% of Near-Retirees Are Making
4 Retirement Rules to Live By
Retirement means no longer dealing with the daily grind -- but having more freedom during retirement doesn't mean there are no rules to live by. Most retirees have limited incomes and concerns about making their money last -- which means that making a plan and setting guidelines can be essential. To help ensure you'll be able to enjoy your retirement and escape financial disaster, make sure that you live by these four important retirement rules. Image source: Getty Images 1. Don't spend your savings too quickly The No. 1 retirement rule to follow is to make your savings last. Retirement tends to be more expensive in the beginning -- when people are spending to enjoy life -- and in the end, when you incur healthcare costs. Unfortunately, if you've spent a fortune traveling the world, you may not have cash when a serious health issue comes along. It's imperative you have a plan so you don't find yourself broke at 85 -- and this plan must involve being strategic about money withdrawn … [Read more...] about 4 Retirement Rules to Live By
Corrections & Clarifications
To report corrections & clarifications, contact: Please indicate whether you're responding to content online or in the newspaper. The following corrections & clarifications have been published on stories produced by USA TODAY's newsroom: April 2018 News: A previous version of this story misstated Elliot Rodger's weapons. He used both a knife and a gun. https://www.usatoday.com/story/news/2017/03/31/masculinity-traditional-toxic-trump-mens-rights/99830694/ Video: A previous version of this video misstated the number of Americans living with unhealthful levels of pollution. https://www.usatoday.com/media/cinematic/video/33952141/8-of-americas-10-most-ozone-polluted-cities-are-in-this-state/ Opinion: Because of an editing error, a headline in an earlier version of this column incorrectly described Amy Wax's job status. https://www.usatoday.com/story/opinion/2018/04/20/black-students-law-school-amy-wax-column/510510002/ … [Read more...] about Corrections & Clarifications
Why German life insurers, excoriated by low interest rates, are crying uncle
Handelsblatt Explains Germans love security, and were the ideal market for life insurance policies that doubled as savings accounts and pensions. Then interest rates dropped. Now insurers, and policyholders, are in crisis. Published on January 26, 2018 1:15 pm “We Germans like to be safe,” the moderator says in opening his talk show on prime-time television. “There are more life insurance policies in the country than people alive.” In most countries, the subject of life insurance would hardly be considered a winner in TV ratings. In Germany, it is. That’s because “the business model of life insurance will collapse,” as Sven Enger, one of the panelists says. A former insurance executive and author, he predicts that “savings will be lost, old people will be in poverty. My advice: Get out of your policies.” These anxieties on the part of policyholders have a mirror image in the troubles of the German insurance industry. They … [Read more...] about Why German life insurers, excoriated by low interest rates, are crying uncle