More Income with Less Risk? A New Perspective On Retirement Income
Life Insurance Selling › Vol. 83 Nbr. 6, June 2008
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Summary
Ibbotson Associates, a leading retirement advice and investment consulting service provider, conducted a recent study to test the advantage of adding the new breed of deferred variable annuity (VA) with living benefits - the lifetime guaranteed minimum withdrawal benefit (GMWB) - to a client's retirement income portfolio. The results, from both historical returns and forward-looking Monte Carlo simulation analysis, showed that retirement income portfolios with a VA+ GMWB produced more income due to increased equity exposure, and decreased income risk because of the high-watermark capture feature of the GMWB rider, than traditional asset allocation mutual fund portfolios.
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More Income with Less Risk? A New Perspective On Retirement Income
"... Retirement income portfolios with a VA + GMWB produced more income due to increased equity exposure, and decreased income risk because of the high-watermark capture feature of the GMWB rider..."
How do I get more income for my clients as they live in retirement? How do I decrease their income fluctuations? How can I make them feel com...See the full content of this document
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