Annuity security.
- Resource Type
- Article
- Authors
- Minney, Aaron
- Source
- Money Management. 3/1/2012, Vol. 26 Issue 7, p24-25. 2p.
- Subject
- *FIXED-income securities
*ANNUITIES
*INVESTMENTS
*INVESTORS
*PRICE inflation
*INFLATION risk
*SECURITY systems
SPOUSE'S share
- Language
- ISSN
- 1322-7254
The article discusses the comparison between direct fixed income and annuities. It explains that direct bond portfolio does not give lifetime payment nor carry an explicit inflation, while a lifetime annuity pays out for life and continues to pay for a surviving spouse. It says that an annuity policy has a guarantee which is being supported by the Australian Prudential Regulation Authority (APRA) while the direct investors of a bond portfolio will be subjected to losses with any default bonds.