(Skeptically) Understanding Variable Annuities with GMWBs

Guarantee Minimum Withdrawal Benefit (GMWB)– A type of (insurance) option that annuitants can purchase for their retirement annuities. This specific option gives annuitants the ability to protect their retirement investments against downside market risk by allowing the annuitant the right to withdraw a maximum percentage of their entire investment each year until the initial investment amount has been recouped.http://www.investopedia.com/terms/g/gmwb.asp


Have you ever heard about something that was too good to be true?   I was reading this article today and thought it important to link.

Robert Huebsher wrote an interesting critique of corporate paid research from seemingly objective resources.  Insurance companies are the best at crafting marketing around ideas that sound great.  Do they hold up under review?


Here is a response by the author, Dr. Peng Chen, who wrote the original study, with an additional response from Robert Huebsher.


Dr. Peng Chen’s original study sponsored by Nationwide Financial and released by Ibottson Associates, Inc..




About Christopher Hessenflow

Christopher Hessenflow is a financial planner in the Chicago area. He works with all sorts of people who are much more interesting than he is. He enjoys his career which lends him time to think and, sometimes, be creative. Chip was born bald.
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s