GMWB is the acronym for Guaranteed Minimum Withdrawal Benefit. It's also referred to as a "variable annuity". The product was developed because many employers are moving away from defined benefit (DB) to defined contribution (DC) pension plans to eliminate their liability for employee's pensions in retirement. With a defined contribution plan the employer makes contributions to the employee's plan but the employee is responsible for investment selection and subsequent performance and long term returns i.e. the employee takes on the risk.
Consider Empire Life Class Plus 3.0 for Guaranteed Lifetime Income in Retirement It may be worth considering Empire Life Class Plus 3.0 for Guaranteed Lifetime Income in Retirement. This product may be suitable for both pre-retirees who plan to retire within the next 20 years as well as those already retired. If you want more guaranteed income than […]
Reduce Stress with a Life Annuity in your Retirement Plan A life annuity is simply 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 life. Think of it as buying your own personal pension plan. Here is an article […]
Variable Annuity (GMWB) and Your Income Retirement Plan In 2006, I attended an advisor conference and a specific presentation about a new retirement product coming down the pipeline aimed at both retirees and those within 15 years of retirement. Technically it’s called a variable annuity but is more commonly referred as a GMWB or Guaranteed Minimum Withdrawal Benefit. The product was developed because […]
The New Kid on the Block…the Variable Annuity! The variable annuity of commonly referred to as a GMWB is on the horizon. In June 2006, I attended the Morningstar Investment Conference, which focused on “Retirement Income Planning”. One well-known speaker, Moshe Milevsky, introduced the concept in retirement planning of not just how to generate retirement […]