Journal opinion article Essay Example | Topics and Well Written Essays - 750 words

Journal opinion article - Essay ExampleThe article of Scism and Tergesen getting Smart roughly Annuities attempts to mention the economic issue in the U.S economy. The authors attempt to reveal the changes in the tune market because of the shift from defined benefits to pension plans contribution in the U.S economy. Annuity markets have started expanding but the dim economic growth in the global market has become a major problem. Annuity refers to the wages made for life insurance or it is simply referred as the U.S financial products thus the article attempts to address the port consumers can become elegant about annuities. Annuity issue has become among the most aspects for the late decades because of the need to improve the quality of life (Scism and Tergesen para. 1). Although financial advisers have not been popular with annuities, it has become single of the hot products in the U.S market. The products do not adduce the potential for outsized gains but there is a guar antee for some benefits (Scism and Tergesen para. 3). Consumers need to be smart when dealing with these products because there are some associated risks that may arise including investiture losses but it appears that annuities have irrefutable appeal. At first, rente offers a modal value for restoring some financial security for golden years but there is no clear grounds that retirees with standard paychecks will be happier than those relying on exclusively social security supplement. It appears that annuities will not offer contentment to consumers hence one needs to be smarter before making a decision about life annuity. Moreover, annuities in the contemporary global financial markets have an undeniable appeal for those grappling with investment losses (Scism and Tergesen para. 4). The problem with this is because investors may have a common idea about the importance of annuity but a few of them may recognize the strategies available for making these financial products a co mponent part of their assets. Therefore, it is crucial for one to figure out the total amount of products one needs to purchase perchance whether he or she wants to put money to work immediately or slowly and what to invest with the rest balance. Scism and Tergesen offer significant and best ways that one should do in order to achieve conquest or avoid any financial losses (Scism and Tergesen para. 3). One of them is the immediate gratification because immediate annuity can enable one to convert payment for a month, quarterly or yearly income for life. Although most immediate annuities are fixed, immediate annuities can offer considerable higher sustainable revenue than the ones creation generated from the venture portfolio. For example, an older a man who purchases an immediate annuity is likely to receive about 8.4 percent of the total amount which he instead (Scism and Tergesen para. 5). This is significant because the payment has interest rates and they are guaranteed to g o along increasing for the rest of ones life. Another way is longevity rider and this is one way of preserving more for purchasing a differed-income annuity (Scism and Tergesen para. 7). This generates an income for life and one may benefit however, the economists have seek to argue as to whether it is significant for one to purchase for a longevity rider or conventional immediate annuity. This is in case the financial benefits outweigh the annuity pool thus one may likely to undergo losses. However,