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Investing - Theory, News & General • LifePath Paycheck funds with embedded life annuities

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BlackRock’s LifePath Paycheck funds

BobK
Thanks for posting this. I expect that this will be the first of many initiatives to fold annuities into a defined contribution plan.

It sounds like the annuities will be SPIAs, but I’m not sure of that. Blackrock is usually a low cost provider, and I hope that carries through here.

Blackrock is not a life insurance company, and only insurers can issue annuities. So I expect that there are one or more life insurance companies in the mix too.

First of many. I just hope that they’re low cost.
No mention of inflation adjustments. The fund allows the owner to annuitize between the ages of 59.5 and 72. If annuitized, 30% is converted and 70% remains invested at the age appropriate equity/bond mix. Fees are 0.1% and increase to 0.16% when annuitized.

Statistics: Posted by GuyInFL — Fri May 03, 2024 7:10 am — Replies 23 — Views 1361



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