For many years, the income side of annuities has been largely ignored as consumers and their advisors have focused on the need for accumulation. This is understandable, given the large cohort of baby boomers who were still in the pre-retirement stage and still actively working and accumulating their retirement savings. But as members of this demographic are now crossing the retirement threshold-many without a traditional pension plan-they must address the other side of the retirement equation: turning their accumulated savings into income. The overriding question they ask is, "How can I make my money last as long as I do?"

The transition to planning for income and committing funds for distribution and consumption is a challenge, but one that advisors and clients must embrace. The fundamental issues associated with retirement income planning-the need to assure that a retiree's income will last as long as he or she does and support a vibrant, secure lifestyle-are precisely those for which annuities are designed.

Upon completion of this course, students will be able to:

• demonstrate an understanding of the purpose and application of annuities
• describe the basic types of annuity products
• explain the operation and function of fixed, indexed, and variable annuities
• articulate how an annuity's product features can support the need for income during retirement
• explain the basics of two annuity-based products specifically designed for retirement income: deferred income annuities and qualified longevity annuities
• demonstrate an understanding of how annuities are taxed