Quantcast
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 Shutterstock 525525397
News

Donor Advised Funds Are The Way To Go

With tax season and tax reform finally here, it’s also the time for charitable giving.

And with...

News

Enterprise Products Partners LP: The Leader in NGL Transport

Enterprise Products Partners LP (EPD ) is a master limited partnership that processes and...

Premium Uptheladder
News

Financials and REITs Move up on Most Watched Stocks List

Last week belonged to the financial stocks and REITs, as stocks from these two sectors witnessed...