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 Dipo Olowookere
The local stock market firmed up by 1.13 per cent on Friday as appetite for Nigerian stocks remained strong.
Investors reacted well to the 2026 budget presentation of President Bola Tinubu to the National Assembly yesterday, especially because of the more realistic crude oil benchmark of $64 per barrel compared with the ambitious $75 per barrel for 2025. This year, prices have been between $60 and $65 per barrel.
Business Post observed profit-taking in the commodity and energy sectors as they respectively shed 0.14 per cent and 0.03 per cent.
But, bargain-hunting in the others sustained the positive run, with the consumer goods index up by 3.82 per cent.
Further, the industrial goods space appreciated by 1.46 per cent, the banking counter improved by 0.08 per cent, and the insurance industry gained 0.04 per cent.
As a result, the All-Share Index (ASI) increased by 1,694.33 points to 152,057.38 points from 150,363.05 points and the market capitalisation chalked up N1.080 trillion to finish at N96.937 trillion compared with Thursday’s closing value of N95.857 trillion.
A total of 34 shares ended on the advancers’ chart, while 24 were on the laggards’ log, representing a positive market breadth index and bullish investor sentiment.
Austin Laz gained 10.00 per cent to close at N2.42, Union Dicon also jumped 10.00 per cent to N6.60, Tantalizers increased by 9.80 per cent to N2.69, Aluminium Extrusion improved by 9.78 per cent to N12.35, and Champion Breweries grew by 9.71 per cent to N16.95.
Conversely, Sovereign Trust Insurance dipped by 7.42 per cent to N3.87, Royal Exchange lost 6.84 per cent to trade at N1.77, Omatek slipped by 6.84 per cent to N1.09, Eunisell depreciated by 5.88 per cent to N80.00, and Eterna dropped 5.63 per cent to close at N28.50.
Yesterday, traders transacted 1.5 billion units worth N21.8 billion in 25,667 deals compared with the 839.8 million units sold for N32.8 billion in 23,211 deals in the preceding session, showing a surge in the trading volume by 76.61 per cent, an uptick in the number of deals by 10.58 per cent, and a shrink in the trading value by 33.54 per cent.
By Adedapo Adesanya
Three stocks stretched the bearish run of the NASD Over-the-Counter (OTC) Securities Exchange by 1.21 per cent on Friday, December 19, with the market capitalisation giving up N26.01 billion to close at N2.121 billion compared with the N2.147 trillion it ended a day earlier, and the NASD Unlisted Security Index (NSI) dropping 43.47 points to 3,546.41 points from 3,589.88 points.
The trio of FrieslandCampina Wamco Nigeria Plc, Central Securities Clearing System (CSCS) Plc, and NASD Plc overpowered the gains printed by four other securities.
FrieslandCampina Wamco Nigeria Plc lost N6.00 to sell at N54.00 per unit versus N60.00 per unit, NASD Plc shrank by N3.50 to N58.50 per share from N55.00 per share, and CSCS Plc depleted by N2.91 to N33.87 per unit from N36.78 per unit.
On the flip side, Air Liquide Plc gained N1.01 to close at N13.00 per share versus N11.99 per share, Golden Capital Plc appreciated by 70 Kobo to N7.68 per unit from N6.98 per unit, Geo-Fluids Plc added 39 Kobo to sell at N5.50 per share versus N5.11 per share, and IPWA Plc rose by 8 Kobo to 85 Kobo per unit from 77 Kobo per unit.
During the trading day, market participants traded 1.9 million securities versus the previous day’s 30.5 million securities showing a decline of 49.3 per cent. The value of trades went down by 64.3 per cent to N80.3 million from N225.1 million, but the number of deals jumped by 32.1 per cent to 37 deals from 28 deals.
Infrastructure Credit Guarantee Company (InfraCredit) Plc finished the session as the most active stock by value on a year-to-date basis with 5.8 billion units valued at N16.4 billion, followed by Okitipupa Plc with 178.9 million units transacted for N9.5 billion, and MRS Oil Plc with 36.1 million units traded for N4.9 billion.
The most active stock by volume on a year-to-date basis was still InfraCredit Plc with 5.8 billion units worth N16.4 billion, trailed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.7 million, and Impresit Bakolori Plc with 536.9 million units traded for N524.9 million.
By Adedapo Adesanya
It was not a good day for the Nigerian Naira at the two major foreign exchange (FX) market on Friday as it suffered a heavy loss against the United States Dollar at the close of transactions.
In the black market segment, the Naira weakened against its American counterpart yesterday by N10 to quote at N1,485/$1, in contrast to the N1,475/$1 it was traded a day earlier, and at the GTBank forex counter, it depreciated by N2 to settle at N1,467/$1 versus Thursday’s closing price of N1,465/$1.
In the Nigerian Autonomous Foreign Exchange Market (NAFEX) window, which is also the official market, the nation’s legal tender crashed against the greenback by N6.65 or 0.46 per cent to close at N1,464.49/$1 compared with the preceding session’s rate of N1,457.84/$1.
In the same vein, the local currency tumbled against the Euro in the spot market by N2.25 to sell for N1,714.63/€1 compared with the previous day’s N1,712.38/€1, but appreciated against the Pound Sterling by 73 Kobo to finish at N1,957.30/£1 compared with the N1,958.03/£1 it was traded in the preceding session.
The market continues to face seasonal pressure even as the Central Bank of Nigeria (CBN) is still conducting FX intervention sales, which have significantly reduced but not remove pressure from the Naira. Also, there seems to be reduced supply from exporters, foreign portfolio investors and non-bank corporate inflows.
President Bola Tinubu on Friday presented the government’s N58.47 trillion budget plan aimed at consolidating economic reforms and boosting growth.
The budget is based on a projected crude oil price of $64.85 a barrel and includes a target oil output of 1.84 million barrels a day. It also projects an exchange rate of N1,400 to the Dollar.
President Tinubu said inflation had plunged to an annual rate of 14.45 per cent in November from 24.23 per cent in March, while foreign reserves had surged to a seven-year high of $47 billion.
Meanwhile, the cryptocurrency market was dominated by the bulls but it continues to face increased pressure after million in liquidations in previous session over accelerating declines, with Dogecoin (DOGE) recovering 4.2 per cent to trade at $0.1309.
Further, Ripple (XRP) appreciated by 3.9 per cent to $1.90, Cardano (ADA) rose by 3.5 per cent to $0.3728, Solana (SOL) jumped by 3.4 per cent to $126.23, Ethereum (ETH) climbed by 2.9 per cent to $2,982.42, Binance Coin (BNB) gained 2.0 per cent to sell for $853.06, Bitcoin (BTC) improved by 1.7 per cent to $88,281.21, and Litecoin (LTC) soared by 1.2 per cent to $76.50, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
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