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Immediate Annuities and Inflation

Sunday, May 23, 2010 - 10:38 AM
Inflation is one of the risks of immediate annuities which guarantee a fixed payout for life. This WSJ article reviews this issue and some options:
Some annuities will raise the payout based on changes in the CPI while others offer contracts where the payout is increased by a fixed amount -- such as 2% or 3% -- every year for life. Some companies offer both options.
Ken TuminKen Tumin5,473 posts since
Nov 29, 2009
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