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Kerry Pechter - Annuities For Dummies

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Why look into annuities? If youre a Baby Boomer with little or no pension and most of your money in low-interest savings accounts, an annuity may be the key to a secure and comfortable retirement. How can you find out whether an annuity is right for you? Read Annuities For Dummies, 3rd Edition.

This completely revised and updated, plain-English guide is packed with the latest information on choosing the best annuity for your retirement needs. Youll find out exactly what annuities are, whether theyre the right financial vehicle for you, and which of the many annuity options might have your name on it. Youll learn the ins and outs of using annuities to fund your retirement years, figure out whether to stress investments with insurance or insurance with investments, and find out how the right combination of annuities can help you squeeze more income out of your savings that any other financial tool. Discover how to:

  • Identify the main types of annuities
  • Weigh the pros and cons of annuities for yourself
  • Minimize the complexity and cost of your annuity investment
  • Figure out how much money to commit
  • Avoid common annuity pitfalls
  • Create an income you cant outlive
  • The time to start securing your financial future is now. Annuities For Dummies, 3rd Edition, gives you knowledge, insider tips, and expert advice you need to make your money do its best for you.

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    Annuities For Dummies by Kerry Pechter Annuities For Dummies Published by - photo 1
    Annuities For Dummies

    by Kerry Pechter

    Annuities For Dummies Published by Wiley Publishing Inc 111 River St - photo 2

    Annuities For Dummies

    Published by
    Wiley Publishing, Inc.
    111 River St.
    Hoboken, NJ 07030-5774
    www.wiley.com

    Copyright 2008 by Wiley Publishing, Inc., Indianapolis, Indiana

    Published by Wiley Publishing, Inc., Indianapolis, Indiana

    Published simultaneously in Canada

    No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at http://www.wiley.com/go/permissions.

    Trademarks: Wiley, the Wiley Publishing logo, For Dummies, the Dummies Man logo, A Reference for the Rest of Us!, The Dummies Way, Dummies Daily, The Fun and Easy Way, Dummies.com and related trade dress are trademarks or registered trademarks of John Wiley & Sons, Inc. and/or its affiliates in the United States and other countries, and may not be used without written permission. All other trademarks are the property of their respective owners. Wiley Publishing, Inc., is not associated with any product or vendor mentioned in this book.

    LIMIT OF LIABILITY/DISCLAIMER OF WARRANTY: The publisher and the author make no representations or warranties with respect to the accuracy or completeness of the contents of this work and specifically disclaim all warranties, including without limitation warranties of fitness for a particular purpose. No warranty may be created or extended by sales or promotional materials. The advice and strategies contained herein may not be suitable for every situation. This work is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If professional assistance is required, the services of a competent professional person should be sought. Neither the publisher nor the author shall be liable for damages arising herefrom. The fact that an organization or Website is referred to in this work as a citation and/or a potential source of further information does not mean that the author or the publisher endorses the information the organization or Website may provide or recommendations it may make. Further, readers should be aware that Internet Websites listed in this work may have changed or disappeared between when this work was written and when it is read.

    For general information on our other products and services, please contact our Customer Care Department within the U.S. at 877-762-2974, outside the U.S. at 317-572-3993, or fax 317-572-4002.

    For technical support, please visit www.wiley.com/techsupport.

    Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books.

    Library of Congress Control Number: 2007941625

    ISBN: 978-0-470-17889-8

    Manufactured in the United States of America

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    About the Author

    Kerry Pechter is the senior editor of Annuity Market News. As a reporter who writes about annuities and the annuity industry full-time and as a former marketing writer who specialized in annuities at The Vanguard Group, he brings both an outsiders and an insiders perspective to the writing of this book.

    A financial journalist for many years, Kerry has written for the New York Times, the Wall Street Journal, the Los Angeles Times, and many other national and regional publications. His previous books include two career guides, A Big Splash in a Small Pond: How to Get a Job in a Small Company (Fireside) and An Engineers Guide to Lifelong Employability (IEEE). He is a graduate of Kenyon College.

    Dedication

    To my family my supportive and resourceful wife, Lisa Higgins; my three wonderful daughters, Hannah, Ariel, and Mattea; my brother, David, and his wife, Jean; my sister, Carol, and her husband, Andy; and my parents, Allen and Dorothy.

    Authors Acknowledgments

    The community of people who think about, write about, create, and sell annuities is a relatively small one. Many of its members patiently guided me through the intricacies of these odd but necessary insurance products when I was figuratively climbing stairs in the dark.

    A special thanks goes to Noel Abkemeier, Jeremy Alexander, Lisa Bennett, Garth Bernard, Scott DeMonte, Howard Drescher, Jerry Golden, Pem Guerry, Kelli Hueler, David Macchia, Moshe Milevsky, Lisa Tibbitts, Tamiko Toland, John Ziambras, the folks at NAVA (Mark Mackey, Deborah Tucker, and Kathleen McKee), and to the media relations professionals at dozens of insurance companies who cheerfully responded to my last-minute requests for information.

    Im grateful to Adam Reinebach and Lee Barney, the publisher and editor of Annuity Market News, respectively, for supporting this project and for sharing my editorial values. I am also indebted to my former colleagues at The Vanguard Group, who taught me the true fundamentals of investing.

    Thanks to my agent, Marilyn Allen, my acquisitions editor, Stacy Kennedy, and my project editor, Natalie Harris, for recognizing the value of publishing this book and welcoming me into the fold. Id also like to thank my friend and fellow Dummies author, Russ Wild, for his indispensable help. Finally, I owe a huge debt to Jesus Salas for his wise counsel.

    Publishers Acknowledgments

    Were proud of this book; please send us your comments through our Dummies online registration form located at www.dummies.com/register/.

    Some of the people who helped bring this book to market include the following:

    Acquisitions, Editorial, and Media Development

    Project Editor: Natalie Faye Harris

    Acquisitions Editor: Stacy Kennedy

    Copy Editor: Pam Ruble

    Technical Editor: Ron Hanson

    Editorial Manager: Christine Meloy Beck

    Media Development Manager: Laura VanWinkle

    Editorial Assistants: Leeann Harney, David Lutton, Erin Calligan Mooney, Joe Niesen

    Cartoons: Rich Tennant (www.the5thwave.com)

    Composition Services

    Project Coordinator: Katie Key

    Layout and Graphics: Reuben W. Davis, Alissa D. Ellet, Melissa K. Jester,Christine Williams

    Proofreaders: Jessica Kramer, Bonnie Mikkelson

    Indexer: Broccoli Information Management

    Publishing and Editorial for Consumer Dummies

    Diane Graves Steele, Vice President and Publisher, Consumer Dummies

    Joyce Pepple, Acquisitions Director, Consumer Dummies

    Kristin A. Cocks,

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