Economy
From Uncertainty to Confidence: A Personal Journey with Annuities
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]
By Adedapo Adesanya
The federal government is offering two new savings bonds with interest rates between 17 and 18 per cent through the Debt Management Office (DMO).
In a statement by the agency, the country said retail investors can purchase the two-year bond maturing in January 2027 at 17.23 per cent interest, while the three-year paper maturing in January 2028 at a coupon rate of 18.23 per cent.
Bonds are very safe financial instrument that serve as investments because they are backed by the federal government, which promises to pay back the money.
According to the DMO, people can buy these bonds starting January 13, 2025, until January 17, 2025, with allotment expected on January 22, 2025, and the interest to be paid to investors every three months – in April, July, October, and January.
These bonds have some special features. They are tax-free under both company and personal tax laws.
Big investors like pension funds and trustees are allowed to buy them and each bond costs N1,000 each.
However, interested investor can only buy at least N5,000 worth, and can’t buy more than N50 million.
This comes after the Ms Patience Oniha-led debt office said the Nigerian government was offering three bonds worth N150 billion in September 2024.
By Aduragbemi Omiyale
The House of Representatives has said it would make efforts to pass the controversial tax reform bills forwarded to the National Assembly by President Bola Tinubu last year.
Mr Tinubu, in a bid to improve revenue of the government, asked the parliament to pass the bills, but this has been resisted mostly by northern lawmakers and others.
At the resumption of plenary session on Tuesday in Abuja, the Speaker of the House of Representatives, Mr Abbas Tajudeen, assured that the green chamber of the legislative arm of government would prioritise the tax reform bills.
“The legislative agenda of the House for 2025 prioritises the passage of the Appropriation Bill and the Tax Reform Bills, both of which are pivotal to economic recovery and fiscal stability.
“These reforms are essential for broadening the tax base, improving compliance and reducing dependency on external borrowing.
“The House will ensure that these reforms are equitable and considerate of the needs of all Nigerians, particularly the most vulnerable,” Mr Abbas said through the Deputy Speaker, Mr Ben Kalu, who presided over the session.
He also expressed grief over the loss of lives in stampedes in Ibadan, Abuja and Anambra State last month due to hardship in the country.
Several Nigerians died in the stampedes while trying to receive palliatives given to alleviate their sufferings.
“Tragic events, such as the stampedes in Ibadan, Abuja and Okija, during the distribution of palliative aid, underline the urgent need for improved planning and safety protocols in humanitarian efforts. On behalf of the House, I extend our deepest sympathies to the families and communities affected.
“These incidents serve as a stark reminder of the socio-economic hardships facing our citizens and the imperative for policies that tackle hunger and poverty at their roots.
“Turning to the economy, 2024 presented both difficulties and opportunities. While inflation remains a pressing concern, progress in GDP growth and the positive trajectory of economic reforms provide hope for a more stable and prosperous 2025,” the Speaker said.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.69 per cent appreciation on Monday, January 13, as investors showed renewed interests in unlisted securities.
During the trading session, the NASD Unlisted Security Index (NSI) increased by 21.07 points to wrap the session at 3,095.00 points compared with the 3,073.93 points recorded in the previous session.
In the same vein, the value of the local alternative stock exchange went up by N7.22 billion to close at N1.061 trillion compared with last Friday’s N1.051 trillion.
Yesterday, FrieslandCampina Wamco Nigeria Plc recorded a growth of N3.78 to close at N42.00 per share versus N38.22 per share, Mixta Real Estate Plc improved by 20 Kobo to end at N2.35 per unit versus the preceding closing rate of N2.15 per unit, and Industrial and General Insurance (IGI) Plc gained 1 Kobo to finish at 25 Kobo per share compared with the previous session’s 24 Kobo per share.
Conversely, Geo-Fluids Plc lost 29 Kobo to quote at N4.56 per unit compared with the preceding day’s N4.85 per unit, and Afriland Properties Plc slid by 75 kobo to end the session at N15.50 per share versus the preceding closing rate of N16.25 per share.
During the session, the volume of securities traded decreased by 27.2 per cent to 3.1 million units from 4.3 million units, the value of securities slumped by 81.5 per cent to N3.2 million from N17.2 million, and the number of deals expanded by 57.9 per cent to 30 deals from 19 deals.
At the close of trades, FrieslandCampina Wamco Nigeria Plc remained the most active stock by value (year-to-date) with 1.9 million units worth N74.2 million, followed by 11 Plc with 12,963 units valued at N3.2 million, and IGI Plc with 10.7 million units sold for N2.1 million.
Also, IGI Plc remained the most traded stock by volume (year-to-date) with 10.6 million units sold for N2.1 million, trailed by FrieslandCampina Wamco Nigeria Plc with 1.9 million units valued at N74.2 million, and Acorn Petroleum Plc with 1.2 million units worth N1.9 million.
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