Past Webinar: Watch on Demand

Wade Pfau, Ph.D.,CFA

Tuesday, June 09, 2020 | 12:00 PM — 1:00 PM EDT

Understanding How Different Types of Annuities Work

Presented by:
Wade Pfau, Ph.D.,CFA

Professor of Retirement Income, The American College

 Annuities with lifetime income provisions offer risk pooling, which tends to be underappreciated as a unique source of returns that is unavailable for an investment portfolio. But there are many types of annuities in the marketplace and understanding how they work can be complex. This presentation seeks to provide a better understanding about different types of annuities, including income annuities such as single-premium immediate annuities, deferred variable annuities, and fixed index annuities. For the latter two, we will focus on how they provide exposure to market upside and on how optional guaranteed lifetime withdrawal benefit riders can support lifetime spending. 

Learning Objectives
  • Distinguish between major annuities categories such as variable or fixed, immediate or deferred
  • Understand mechanics for how downside protection, upside potential, and liquidity features work for different annuity types
  • Appreciate the risk pooling insurance aspect provided by annuitization or by guaranteed distributions through an optional guaranteed lifetime withdrawal benefit

Please Note: One CE credit will be provided for CFP, RICP, CLU, ChFC, and CFFP/Kaplan designations.

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