Introduction to Annuities and Retirement Planning

Statement of Knowledge, skills and abilities the license is expected to obtain through the completion of this course:

This is an introductory course that will cover very important material in 3 hours, so it is not expected to provide in-depth coverage of the topics.

Students will obtain an understanding of the purpose and functions of annuities and their role in retirement planning. They will also be able to describe the kinds of fixed annuities in the market today.

Additionally, students will be able to describe the financial role annuities take in retirement planning.

Students will get basic knowledge to demonstrate an understanding of the types of annuities available, how to contribute to annuities and the fundamental rules in the distribution phase, including tax implications for the different types of withdrawal possibilities within annuities.

The role that longevity plays in annuity planning is also covered.

Detailed outline of the course showing approximate times for major topics:

 

 

Order

Topic

Minutes

1

Introduction

1

2

Annuities and Retirement Planning

3

3

Fixed Annuity Spectrum

4

4

Annuity Financial Risk Management

3

5

Risk Management based on principle

4

6

Tax Efficiency Check-up

4

7

What is an Annuity

3

8

Why do people buy annuities

3

9

The Power of Tax Deferral

3

10

Taxable VS tax deferred growth

4

11

Time Required for Money to Double

3

12

Annuity compared to 401K and IRAS

4

13

Parties to an annuity

3

14

Parties to an annuity - The Owner

3

15

Parties to an annuity- The Beneficiary

3

16

Parties to an annuity - The Annuitant

2

17

Parties to an annuity - The Carrier

2

18

Graphical Annuities

3

19

Types of Annuities

5

20

Immediate VS Deferred Annuities

3

21

Fixed and Variable Annuities

4

22

Putting Money into an Annuity

2

23

Putting money into a Fixed annuity

4

24

Putting Money into a Variable Annuity

4

25

Guaranteed Death Benefits

4

26

Annuity Fees and Expenses

4

27

Taking Money out of an Annuity

4

28

Annuitizing  an Annuity

3

29

Factors affecting annuitization payments

4

30

Annuity payout options

4

31

Annuities Tax Consequences

4

32

Common Annuity Riders

3

33

Traditional Retirement planning

3

34

Traditional Retirement planning example with fixed returns

3

35

US Historical data

6

36

What’s different about retirement

3

37

Key retirement risks

4

38

The Retirement Income Challenge

3

39

Life Expectancy

3

40

Male Mortality rates over time

3

41

Life expectancy at age 0

3

42

Period life tables

3

43

Survival function for SSA population

3

44

Survival function and longevity risk

3

45

Age of death distribution - 65-year-old female

3

46

Estimated cost of $ 10,000 inflation adjusted lifetime income

3

47

Sources of income annuity payments

3

48

Financial Literacy in Annuities

3

49

Importance of current economical conditions

3

50

Probability based Vs safety first

3

51

Wealth over the lifecycle

3

52

Modern Retirement Theory

3

53

Retiree Balance Sheet

3

54

Retirement Optimization Plan

3

55

Retirement Portfolio: Theory Construction and Management

3

     
   

180