July 19, 2016

Understanding Annuities

Barbara Friedberg explains how annuities work:
  1. You purchase an annuity from an insurance company with either a single payment or ongoing contributions.
  2. The money in your annuity account grows at an interest rate or predetermined rate associated with a specific market rate.
  3. Upon retirement, the money in the annuity account is annuitized — converted into an income stream — or withdrawn in a lump sum.
There are two broad types of annuities: immediate and deferred. Within each of these categories are fixed- or variable-payment options. Read the details at:

July 15, 2016

Fixed- Income Investments

The Motley Fool provides a clear explanation of a variety of fixed-income investments and strategies to make the most of this part of one's portfolio. Especially with today's ultra-low interest rates, it is important to manage your investments strategically. With the Dow hitting record levels this week, now is a good time to sell high and rebalance your portfolio. Sell some of your stocks at today's high prices and buy some fixed-income bonds to regain your original portfolio allocation between stocks and bonds. Read the full article at: http://www.fool.com/investing/2016/07/14/what-are-fixed-income-investments.aspx

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