NO.PZ202301041000002802
问题如下：
Ryan is concerned about the performance of his portfolio due to a current low interest rate environment and expectations of rising inflation. Ryan tells Hamilton that he recently read an article in a personal finance magazine about annuities that pay a lifetime income stream. Hamilton explains to Ryan that an immediate fixed annuity with a non-trade-out provision would provide lifetime income and could be a possible alternative to his current portfolio. Ryan considers converting his entire portfolio to this annuity.
Discuss, using only the information provided, two reasons why investing entirely in the immediate fixed annuity might not be appropriate for Ryan.
选项：
解释：
Converting the entire portfolio to an
immediate fixed annuity may not be appropriate for Ryan for the following
reasons:
•
Low interest rate environment: When buying a fixed annuity
the investor locks in payments based on current interest rates. Purchase of a
large fixed annuity when interest rates are low will lock in relatively low payments.
•
High expected inflation: The real value of payments from a
fixed annuity declines over time due to inflation, and rising inflation
exacerbates this problem.
•
Ryan’s
gifting plans: A non-trade-out provision limits gifting ability from the life
annuity because it is not liquid. Any gifts would have to be funded from the
life annuity payment stream.
老师您好，针对年金我有几个困惑的点
- 买年金支付的价格是一笔upfront吗？
- 在题目中，意思是当前低利率会影响到fixed年金收益率吗？能理解inflation可能会让年金PMT变得没有价值，但是为什么interest rate也对年金PMT有影响？
