Guaranteed Income For Life for Baby Boomers

Guaranteed income for life is the title of a video by John Huggard who is a Professor and who in his own words, spends most of his time researching mutual funds and annuities.

The video can be viewed on the Boomertirement web site under the title,image

Guaranteed Income For Life: Solving the Longevity Problem for Boomers

John Huggard is definitely not an insurance salesman selling high cost annuities. He is an expert in the field of annuities and imparts some great information, knowledge and advice on how Baby Boomers can take advantage of Living Benefit Variable Annuities. He is also very entertaining so this is not a boring presentation.

I’m sure many of you have shied away from annuities. Put words like insurance, salesman, annuities in the same sentence and many of you would run a mile to get away. But Mr Huggard takes the time to explain how Baby Boomers can use a specific type of Annuity called Living Benefit Variable Annuity to their advantage.

Please take the time to watch the video and then if you are interested spend a little more time on some of the web sites listed below to give yourself a short course in Living Benefit Variable Annuities. It may be exactly what you are looking for.

There are several types of Living Benefit Variable Annuities which you can read about here at Types of Living Benefits. They include

  • Guaranteed Minimum Withdrawal Benefit (GMWB)
  • Guaranteed Minimum Withdrawal Benefit for Life
  • Guaranteed Minimum Income Benefit (GMIB)
  • Guaranteed Minimum Accumulation Benefit (GMAB)

They are explained with simple examples on the link above.

A great site that will provide you with impartial advice on Annuities is AnnutiyIQ. They state;

“Our mission is to provide unbiased accurate information on variable annuities, by providing a third party evaluation and ranking of the major variable annuity provider’s contracts.”

Its web page on “What to Look for in Variable Annuity Living Benefits” has some very good information and links to eBook’s and other resources to help you decide if they are for you. Sign up and get some of their no obligation free information.

You can purchase John Huggard’s book “Investing with Variable Annuities” on the site too. You will learn;

  • Why retired variable annuity owners who are in a 25% tax bracket will rarely pay more than 15% in income on their variable annuity withdrawals. (Chapter 10)
  • How variable annuities can easily be stripped of both death and income taxes. (Chapter 18)
  • How variable annuities may be set up to avoid creditors, Medicaid liens, etc. (Chapter 37)
  • How to withdraw money from a variable annuity without having to pay income taxes on the withdrawals. (Chapter 48)
  • Why variable annuities almost always cost less than mutual funds. (Chapters 31-36)
  • Why after-tax gains are almost always higher with variable annuities than mutual funds. (Chapter 9)
  • Why variable annuities belong in qualified plans. (Chapters 51-55)
  • The tax traps associated with mutual fund ownership. (Chapter 14)
  • Why the stepped-up basis available to variable annuity owners is better than the stepped-up basis mutual fund owners receive. (Chapter 25)
  • The many benefits of variable annuity ownership. (Chapters 37-50)
  • The many hidden costs of mutual fund ownership. (Chapter 39)
  • How to avoid surrender charges and IRS penalties when selling a variable annuity. (Chapter 17)

To get some idea of the fees and charges take a look at the Variable Annuities Knowledge Center in particular the article entitled, “Types of Variable Annuity Fees“. Morningstar published the average fees charged for guaranteed living benefit variable annuities as follows:

  • For the Guaranteed Minimum Income Benefit, an average fee of 0.48%.
  • For the Guaranteed Minimum Accumulation Benefit, an average fee of 0.43%.
  • For the Guaranteed Minimum Withdrawal Benefit, an average fee of 0.47%. If the GMWB includes a lifetime guarantee, the average would likely be more.

One last thing. Here is a brochure that advertises Variable Annuities. A comment by Steve Lovell makes a lot of sense to me,

“Annuities are under-priced, not over-priced. Those expenses are buying you two really
important features: a death benefit [and] a lifetime income benefit. And if that didn’t have any value, then why is it that corporations are taking it away from employees?”

So it might be worth ignoring some of the myths about annuities in general and finding out the facts. If guaranteed living benefit variable annuities can provide you with a worry-free retirement, on an income that you can rely on to live comfortably, and still leave some money to your kids then you really may have a guaranteed income for live.

I am not affiliated to any of the sites above nor do I get any commission on any book you might purchase.

8 Responses to “Guaranteed Income For Life for Baby Boomers”

  1. This is a great article…and an eye opener…I have always had negative feelings towards annuities. This is a must read for baby boomers and those approaching retirement. Thanks..carol stanley

  2. admin says:


    Thanks once again for your support.

    I often find that I need to fight against the popular view about something for my own understadning. When I do I often see it in a very different light.

    Living Benefit Variable Annuities is a case in point.


  3. Paul says:

    Is there a service like “Consumers Reports” or Morningstar that rates and reviews Variable Annuity with Living Benefits?

  4. admin says:

    Hi Paul,

    I know Morningstar have a subscription database for financial advisers called Morningstar Principia that includes Variable Annuities. Cut and paste the URL below into your browser for more info here:

    But does an annual review using that very data for a consumer report and guide. It includes about 1600 of them in its review.
    They review the performance, features, and expenses of variable annuities to update the “20 Best Variable Annuities” and “10 Worst Variable Annuities” included in our Consumer Guide to Variable Annuities.

    Go here to get the information on the Guide

    That should give you plenty to work with.
    But I’d also get John Huggard’s book as it has been recently updated in 2008, so should be very up to date.

    I hope that helps.


  5. Scott says:


    I run Annuity IQ and we do rate variable annuity contracts and their living benefits. Morningstar will simply give you a 30 page print out of contract data and not much more info. We actually dig into the benefits and rate them based on how they would perform. We tried to take the work out of it for consumers and advisors. Thank you for mentioning us.

  6. admin says:


    Thank you for the additional information.

    I was impressed with the information on your site and so I don’t doubt that the report will be just as informative for Baby Boomers.

    Thank you.

    David Bates

  7. […] Heiple of Teeter Totter Principle (BalanceZone) fame emailed me this considered response to living benefit variable annuities. Right now with the world economy in turmoil the one rule must be to double check all retirement […]

  8. […] might be time to revisit my earlier post, “Guaranteed Income For Life for Baby Boomers“  about John P. Huggard and his book, “Investing with Variable Annuities“. He […]

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