The Handbook of Variable Income AnnuitiesIn-depth coverage of variable income annuities With trillions of dollars in retirement savings assets, the tens of millions of Americans on the precipice of retirement need to convert these savings into retirement income. The fact that variable income annuities (VIAs) generate maximum lifetime income with zero probability of outliving it has spurred the need for more information about VIAs. The Handbook of Variable Income Annuities is by far the most comprehensive source of information on this topic. This book thoroughly describes the most important principles of optimal asset liquidation and demystifies VIA mechanics, so readers can gain a high comfort level with this important financial instrument. Interestingly and clearly, The Handbook of Variable Income Annuities explains the mathematical pricing of variable income annuities, expected rates of return, taxation, product distribution, legal aspects, and much more. Jeffrey K. Dellinger (Fort Wayne, IN), a Fellow of the Society of Actuaries and a member of the American Academy of Actuaries, has over 25 years experience in the financial services sector. He advises institutions on retirement income optimization, products, and markets. |
From inside the book
Results 1-5 of 77
... equation 3.4 says that the percentage change in the price of a bond approximately equals the bond duration times the change in interest rate. For example, a bond with a four-year duration would change (decrease) in value approximately 4 ...
... equation 3.4 increases with larger changes in interest rates. Incorporating higher-order terms (i.e., second derivative and beyond) that capture the nonlinearity can reduce the margin of error. Nonetheless, the gist of the matter ...
... equation 3.4 for a block of fixed annuity business can be extended to the entire company. Noting that equation 3.4 can be rewritten as AP I —D-P~Ai, we have: ANW. : A(A. _. L). :(—DA-A-Ai)—(—DL-L-Ai). (3.5). I. —(DA. —DL)~A-Ai. since we ...
... equation of value 3.6 is 8.16% expressed as an annual effective interest rate or 8.00% expressed as a nominal semiannual interest rate. While the derivation is deferred until Chapter 6, the relationship. 34 THE HANDBOOK OF VARIABLE ...
... equation 3.7 for i: 8.16%, as well as for 1% higher and 1% lower, since we wish to investigate the impact on bond price if we shock the interest rate (i.e., yield to maturity) up 1% or down 1%. Nominal Annual Semiannual Effective Rate 1 ...
Contents
1 | |
17 | |
21 | |
39 | |
59 | |
Chapter 6 Annuitant Populations and Annuity Present Values | 77 |
Chapter 7 Immediate Variable Annuity Subaccounts | 249 |
Chapter 8 Rate of Return | 277 |
Chapter 15 Securities Law | 441 |
Chapter 16 Forms of Insurance and Insurers | 453 |
Chapter 17 IVA Business Value to Annuity Company | 473 |
Chapter 18 Product Development Trends | 489 |
Chapter 19 Conclusion | 565 |
Appendixes | 575 |
Quotable Wisdom Regarding Longevity | 715 |
Notes | 717 |
Chapter 9 Reserves and RiskBased Capital | 299 |
Chapter 10 Immediate Variable Annuity Taxation | 333 |
Chapter 11 Services and Fees | 353 |
Chapter 12 Product Distribution | 363 |
Chapter 13 Individual Immediate Variable Annuity Underwriting | 411 |
Chapter 14 Legal Issues | 421 |
Glossary | 741 |
About the Author | 743 |
Index to Notation | 745 |
Subject Index | 747 |