The Great Annuity Paradox – Redux

by JR Robinson on March 26, 2012

Variable Annuities with Lifetime Income Riders

My last blog post of 2011 – The Great Annuity Paradox – featured a discussion of the changing perceptions of variable annuity contracts and the odd state of affairs in the annuity marketplace.  The post generated a fair amount of client discussion, so, to follow up, I thought some folks might be interested in following the transformation in perception and reality that is taking place in the annuity marketplace first hand.  Below are a handful of articles from the popular press over the past few years that echo the tale recounted in the Great Annuity Paradox.

Readers should be advised that I am providing this information because I believe it is of general topical interest.  While I do regard variable annuities with lifetime income benefit riders as a potential solution for managing serial returns risk (the risk of major stock market declines early in retirement),  annuities are certainly not suitable for all investors, and nothing in this communication should be construed as a solicitation or recommendation to purchase variable annuity contracts. Investors should also be aware that variable annuity contracts are complex instruments that are sold by prospectus.  Investors who are considering such investments are advised to carefully read and understand the risks, limitations, and expenses as outlined in the prospectus prior to investing.

Comments and questions are always welcome.


John R.

Financial Planning Hawaii
220 S. King Street, Suite 1410
Honolulu, HI 96813
(808)564-0654 or toll free (866)894-3647
Fax (808)697-6714

National Financial Services, LLC [NFS], member NYSE/SIPC, a Fidelity Investments® company, serves as custodian for client assets and provides clearing and trade execution for client accounts.  Securities and Investment Advisory Services are offered through Financial Advisers of America, LLC, a SEC Investment Advisor and member FINRA/SIPC.  Separate investment advisory services, including flat fee and hourly fee financial planning, are offered through Financial Planning Hawaii Inc., a Registered Investment Advisor.  Financial Advisers of America, LLC is not affiliated with Financial Planning Hawaii Inc.



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{ 2 comments… read them below or add one } December 5, 2013 at 10:07 am

My partner and I stumbled over here by a different web page and thought I might check things out.

I like what I see so i am just following you. Look forward to looking into your
web page again.


JR Robinson December 5, 2013 at 5:54 pm

Thank you for visiting our blog. With respect to this article, earlier this year I co-authored a paper called The Cost of Guaranteed Income – Demystifying the value proposition of variable annuities with GLWB riders. The paper was presented at the annual Academy of Financial Services conference in Chicago in October and is currently in the final stages of peer review with a professional journal. We are hoping it will be published shortly. Once we receive that confirmation, I will be adding a blog post summarizing our findings.

FYI, Our entire website and blog are currently being revamped for easier viewing and SEO.

Mahalo & Aloha,
J.R. Robinson
Financial Planning Hawaii, Inc. and Nest Egg Guru, LLC


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