Are you getting the best rate from your broker?
Compare your broker's rates now to find out if you can save money

Choose your broker below
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
Dividend logo

The ‘annuity puzzle’ is a term used in the financial services business to describe a paradox in the way people think about annuities.

Annuities, of course, are contracts issued by insurance companies (see our guide to four major types of insurance) in which paying a sum of money entitles you to a stream of income for life. There are many variations of how this arrangement can work and how the money you pay is invested, which is the reason there are many varieties of annuities.

Loving and Hating Annuities

The paradox is this: Most people love the assured income for life part of the annuity equation. Intuitively, that steady income is the equivalent of having a pension, which few of us have these days. But to get that ‘pension,’ people have to part with a sum of money.

To read the Full Story, Go Premium or Log In

Popular Articles

Premium Turning%20knob%20fo%205g
News

A Big Dividend Boost from 5G

By historical standards, the various telecoms are pretty boring stocks to own.

Steady demand,...

News

AbbVie Inc: Banking on HUMIRA

AbbVie Inc (ABBV ) is a biopharmaceutical company that engages in the discovery, development,...

Premium Man%20spotting%20trouble%20through%20binoculars
News

The IMF Sees Trouble Ahead

Unless you’ve been living under a rock, it’s hard to ignore the growth in the global economy.

For...