Economy

From Uncertainty to Confidence: A Personal Journey with Annuities

Published

2 years ago

05/04/2024

In today’s ever-shifting financial landscape, we all seek stability and security in our investment portfolios. As we navigate the complexities of financial planning, annuities offer stability and a narrative of security and peace of mind.

Annuities, with their unique ability to provide a guaranteed stream of income over a set period or for life, give reassurance in an uncertain world.

They represent not just a financial instrument but a promise of stability, offering individuals the peace of mind that their financial future is safeguarded against the unpredictability of market fluctuations.

What is Annuity?

An annuity is an insurance contract issued and distributed by financial institutions with the intention of paying out invested funds in a fixed income stream in the future.

With the transformative power of annuities, investors can embark on a journey towards financial confidence, knowing that their life savings is shielded from the storms of economic volatility, and their dreams for retirement can be realized with certainty and peace of mind.

To help you understand fully, we’ll explore the transformative power of annuities through the lens of a personal story, shedding light on the real impact these financial instruments can have on one’s life.

Meet Sarah, a retiree whose vibrant career in the arts was a testament to her unwavering passion and dedication.

For decades, she immersed herself in a world of creativity, where each brush stroke and every note composed echoed the depths of her artistic soul. While Sarah revelled in the boundless opportunities for expression her profession afforded her, the fluctuating income streams inherent in the arts industry cast a shadow of uncertainty over her financial horizon.

As retirement beckoned with the promise of leisurely days and new found freedom, Sarah found herself confronting a dilemma that loomed larger with each passing day. The same artistic fervour that fuelled her career now collided with the practicalities of financial planning.

How could she ensure a stable income to sustain her through the golden years without sacrificing the essence of her creative spirit?

Caught in the cross-currents of passion and pragmatism, Sarah sought solace in the transformative power of annuities.

Section 1: A Surprising Discovery

Sarah stumbled upon annuities in a conversation with a financial advisor who works at Coronation Life Assurance. Intrigued by the promise of a consistent income stream, she decided to explore this financial tool further. Little did she know that this decision would redefine her retirement.

Section 2: Steady Streams in Uncharted Waters

Annuities gave her fixed payments-a sense of security, allowing her to weather market fluctuations without sacrificing her standard of living. The annuity transformed the unpredictable waves of retirement income into a steady stream, giving Sarah the confidence to explore new passions without financial worry.

Section 3: Customizing the Script

What sets annuities apart is flexibility. Sarah, like many others, discovered the freedom to tailor her annuity to fit her unique needs.

By opting for a lifetime income option with beneficiary benefits (valid if policyholder dies within 10 years) she not only secured her own future but also ensured that her loved ones would be financially supported in the event of her passing.

Section 4: Legacy of Stability

As Sarah continued her journey into retirement, the true impact of annuities unfolded. The financial stability provided by her annuity allowed her to leave a lasting legacy for her family. Her story became a testament to the transformative power of annuities, not just as a means of securing one’s own future but as a tool to create a ripple effect of stability for generations to come by ensuring non-dependence on her loved ones for livelihood and guaranteeing benefits to them in the event of her demise (within the first 10 years)

In plain terms:

Annuities possess several unique qualities that set them apart from other financial instruments:

Guaranteed Income

One of the most distinctive features of annuities is their ability to provide a guaranteed stream of income. Depending on the type of annuity, this income can be fixed or variable and can last for a set period or even for life. This guarantee offers peace of mind to investors, particularly retirees, who seek a reliable source of income to support their lifestyle.

Tax Deferral

Annuities offer tax-deferred growth, meaning that any earnings within the annuity grow tax-free until they are withdrawn. This can be advantageous for individuals looking to maximize the growth of their investments overtime without being subject to immediate taxation.

Flexibility

Annuities come in various forms, including fixed, variable, and indexed annuities, each offering different levels of risk and potential return. This flexibility allows investors to tailor their annuity choices to align with their risk tolerance, investment goals, and financial circumstances.

Death Benefit

Many annuities offer a death benefit, ensuring that a beneficiary will receive a certain amount, typically the initial investment or the accumulated value, upon the annuitant’s death. This feature can provide a measure of financial security for loved ones and can be particularly appealing for those concerned about leaving a legacy.

Lifetime Income Options

For retirees seeking to address longevity risk—the risk of outliving their savings—annuities offer unique solutions. With options such as immediate annuities or longevity annuities, individuals can secure a steady stream of income for life, regardless of how long they live.

Protection from Market Volatility

Fixed annuities provide protection from market volatility by offering a guaranteed interest rate for a specified period. This can shield investors from the ups and downs of the stock market and provide a stable foundation for their retirement income strategy.

Sarah’s journey with annuities is a compelling testament to the transformative power of these financial instruments. From uncertainty and anxiety to confidence and stability, annuities have the potential to reshape the narrative of retirement. As we navigate the unknowns of our financial future, let Sarah’s story serve as an inspiration–a reminder that with the right financial tools, we can turn the page from uncertainty to a chapter filled with confidence and peace of mind. With confidence and peace of mind.

For more information, visit our website www.coronation.ng to start, call: 01-2774500, 020-1-2774500, or send an email to [email protected]

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Food Concepts Return NASD OTC Exchange to Danger Zone

Published

55 minutes ago

05/12/2025

Adedapo Adesanya

By Adedapo Adesanya

Food Concepts Plc neutralized the gains recorded by three securities, returning the NASD Over-the-Counter (OTC) Securities Exchange into the negative territory with a 0.27 per cent loss on Thursday, December 4.

Yesterday, the share price of the parent company of Chicken Republic and PieXpress declined by 34 Kobo to sell at N3.15 per unit compared with the previous day’s N3.49 per unit.

This shrank the market capitalisation of the OTC bourse by N5.72 billion to N2.136 billion from N2.142 trillion and weakened the NASD Unlisted Security Index (NSI) by 9.57 points to 3,571.53 points from 3,581.10 points.

Business Post reports that Central Securities Clearing System (CSCS) Plc went down by 50 Kobo to N38.50 per share from N38.00 per share, FrieslandCampina Wamco Nigeria Plc gained 29 Kobo to sell at N55.79 per unit versus N55.50 per unit, and Geo-Fluids Plc added 5 Kobo to close at N4.60 per share compared with Wednesday’s closing price of N4.55 per share.

Trading data indicated that the volume of securities recorded at the session surged by 6,885.3 per cent to 4.3 million units from the 61,570 units posted a day earlier, the value of securities increased by 10,301.7 per cent to N947.2 million from N3.3 million, and the number of deals went up by 146.7 per cent to 37 deals from the 15 deals achieved in the previous trading session.

At the close of business, Infrastructure Credit Guarantee Company (InfraCredit) Plc was the most traded stock by value on a year-to-date basis with the sale of 5.8 billion units for N16.4 billion, trailed by Okitipupa Plc with 170.4 million units worth N8.0 billion, and Air Liquide Plc with 507.5 million units valued at N4.2 billion.

InfraCredit Plc also finished the session as the most traded stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.2 million, and Impresit Bakolori Plc with 536.9 million units traded for N524.9 million.

Economy

Investors Gain N97bn from Local Equity Market

Published

1 hour ago

05/12/2025

Dipo Olowookere

By Dipo Olowookere

The upward trend witnessed at the Nigerian Exchange (NGX) Limited in recent sessions continued on Thursday as it further improved by 0.10 per cent.

This was despite investor sentiment turning bearish after the local equity market ended with 23 price gainers and 28 price gainers, indicating a negative market breadth index.

UAC Nigeria gained 10.00 per cent to finish at N88.00, Morison Industries appreciated by 9.94 per cent to N3.54, Ecobank rose by 8.53 per cent to N36.90, and Coronation Insurance grew by 8.47 per cent to N2.56.

On the flip side, Ellah Lakes depreciated by 10.00 per cent to N13.14, Eunisell Nigeria also shed 10.00 per cent to finish at N72.90, Transcorp Hotels slipped by 9.95 per cent to N157.50, Omatek shrank by 9.23 per cent to N1.18, and Guinea Insurance dipped by 8.46 per cent to N1.19.

Yesterday, the All-Share Index (ASI) went up by 152.28 points to 145,476.15 points from 145,323.87 points and the market capitalisation chalked up N97 billion to finish at N92.726 trillion compared with the previous day’s N92.629 trillion.

Customs Street was bubbling with activities on Thursday, though the trading volume and value slightly went down, according to data.

A total of 1.9 billion stocks worth N19.2 billion exchanged hands in 23,369 deals during the session versus the N2.3 billion valued at N21.0 billion traded in 21,513 deals a day earlier.

This showed that the number of deals increased by 8.63 per cent, the volume of transactions depleted by 17.39 per cent, and the value of trades decreased by 8.57 per cent.

For another trading day, eTranzact led the activity chart with 1.6 billion units sold for N6.4 billion, Fidelity Bank traded 31.0 million units worth N589.3 million, GTCO exchanged 28.3 million units valued at N2.5 billion, Zenith Bank transacted 27.1 million units for N1.6 billion, and Ecobank traded 21.9 million units worth N744.3 million.

Economy

Naira Loses 18 Kobo Against Dollar at Official Market, N5 at Black Market

Published

2 hours ago

05/12/2025

Adedapo Adesanya

By Adedapo Adesanya

The Naira marginally depreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, December 4 amid renewed forex pressure associated with December.

At the official market yesterday, the Nigerian currency lost 0.01 per cent or 18 Kobo against the Dollar to close at N1,447.83/$1 compared with the previous day’s N1,447.65/$1.

It was not a different scenario with the local currency in the same market segment against the Pound Sterling as it further shed N15.43 to sell for N1,930.97/£1 versus Wednesday’s closing price of N1,925.08/£1 and declined against the Euro by 20 Kobo to finish at N1,688.74/€1 compared with the preceding session’s N1,688.54/€1.

Similarly, the Nigerian Naira lost N5 against the greenback in the black market to quote at N1,465/$1 compared with the previous day’s value of N1,460/$1 but closed flat against the Dollar at the GTBank FX counter at N1,453/$1.

Fluctuations in trading range is expected to continue during the festive season as traders expect the Nigerian currency to be stable, supported by intervention s by to the Central Bank of Nigeria (CBN)in the face of steady dollar demand.

Support is also expected in coming weeks as seasonal activities, particularly the stylised “Detty December” festivities, will see inflows that will give the Naira a boost after it depreciated mildly last month, according to a new report.

“As the festive Detty December season intensifies, inbound travel, tourism spending, and diaspora inflows are expected to provide moderate support for FX liquidity,” analysts at the research unit of FMDA said in its latest monthly report for November.

Traders cited by Reuters expect that the Naira will trade within a band of N1,443-N1,450 next week, buoyed by improved FX interventions by the apex bank.

Meanwhile, the crypto market was down as the US Federal Reserve’s preferred inflation gauge, core PCE, likely rose in September—moving in the wrong direction. However, volatility indices show no signs of major turbulence.

If the actual figure matches estimates, it would mark 55 straight months of inflation above the US central bank’s 2 per cent target. The sticky inflation would strengthen the hawkish policymakers, who are in favour of slower rate cuts.

Ripple (XRP) depreciated by 4.5 per cent to $2.08, Solana (SOL) went down by 3.8 per cent to $138.11, Litecoin (LTC) shrank by 3.1 per cent to $83.23, Dogecoin (DOGE) slid by 2.5 per cent to $0.1463, Cardano (ADA) declined by 2.1 per cent to $0.4368, Bitcoin (BTC) fell by 0.9 per cent to $91,975.45, Binance Coin (BNB) crumbled by 0.9 per cent to $899.41, and Ethereum (ETH) dropped by 0.7 per cent to $3,156.44, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.