Income

Bill Gross manages the world's largest bond fund at Pacific Investment Management Company (PIMCO). Gross suggests that the United States is entering a new era of higher savings, lower consumption and lower economic growth that could last as long as a generation. Gross recommends that investors "stress secure income" in this new environment. Recommended sources of secure income include bonds and dividend paying equities: Higher savings, lower consumption and annual economic growth of about 2...

Insurance Company rating agency A.M. Best released a report on the state of the industry for life and annuity insurance companies. The report is somewhat optimistic given the carnage the industry has experienced over the past year or so. The industry as a whole managed to eke out a small amount of net income--$91.5 million--for 2008. However, capital losses for 2008 reached $19.6 billion. Companies such as Allstate Corporation and The Hartford Financial Services have been hit hardest. However,...

A good question and answer piece from the Chicago Tribune. The reader had just purchased a $400,000 immediate annuity at a relatively young age. The purchase was also made from one insurer in a relatively low interest rate environment. Having both a pension and Social Security (both are lifetime annuities), I would not have committed half my portfolio to an income annuity at the relatively young age of 63 and during a period of low interest rates . It does not appear that the annuity came with...

Income limits that have prevented many people from converting from a traditional IRA to a Roth IRA will be eliminated on January 1, 2010. With a traditional IRA, contributions and growth of capital are tax free, but distributions are taxed as normal income. Roth IRAs differ in that contributions are taxable while growth of capital and distributions are tax free. In addition, unlike traditional IRAs, there are no required minimum distributions with Roth IRAs. Last, with a Roth IRA your heirs do...