Can Annuities Offer Competitive Returns?

Reichenstein, William
August 2011
Journal of Financial Planning;Aug2011, Vol. 24 Issue 8, p36
Academic Journal
In this article, the author discusses the competitive returns that annuity offer in the financial planning industry. He discusses the competitiveness of indexed annuity (IA) returns particularly equity-indexed annuity (EIA) returns using two frameworks and examined the historical returns of four EIA contract designs and 13 contracts for 1957-2008. It provides an overview of the statements made by Vander Pal, Marrion and Babbel critiquing the study conducted by the author on indexed annuities and offers information on the response of the author to the criticism wherein he noted that his study used real-world contracts in the marketplace from 1998-2005.


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