An annuity is a financial product whereby you invest a lump sum of money with an insurance company and in turn they provide a guaranteed income payment for a specific length of time. An example would be a life annuity which pays a guaranteed income payment for life.
In September 2020, I began a quarterly report on “Annuities”. In a nutshell, I’ll show the change in annuity payments over time, when all other parameters are held constant except current interest rates. I now have sufficient data and will reduce these updates to twice annually. This is the second and final update for 2021. Methodology […]
The other day I came across an article from GM Canada. They recently transferred $1.8 billion of their pension assets to an annuity for their salaried pension plan members who retired prior to June 2020. This represents about $300,000 per employee on average. Why would GM Canada do this rather than manage a pension plan […]
In September 2020, I began a quarterly report on “Annuities”. In a nutshell, I’ll show the change in annuity payments over time, when all other parameters are held constant. Since I began reporting, interest rates have increased slightly, and so did annuity payouts. Methodology Every three months, I update the default annuity quote (using the Cannex […]
In September 2020, I began a quarterly report on “Annuities”. The original article can be found by clicking on this link. Methodology Every three months, I update the default annuity quote (using the Cannex system). The default client is as follows. 65 year old male invests in a “life annuity” using $100,000 from an RRSP […]
2020 has been quite a roller coaster for investors so far, to say the least. COVID-19 was the primary reason for the market’s decline in March 2020 and thankfully the outlook is slowly improving. While younger investors may take advantage of low prices for securities due to a longer term time horizon, those in the […]