Annuities with guarantees can be useful retirement products -- but heed the risks

...Some ...annuities guarantee a certain amount of income in retirement (GMIB), or withdrawal benefit (GMWB), or accumulation (GMAB). In developing these products, insurers and others have tried to show that these annuities, when used in combination with other investments, can help retirees deal with many of the risks faced in retirement, particularly market and longevity risk.

But, until recently, these products never took flight. Investors found them complicated, lacking transparency and laden with fees. In addition, experts often criticized insurers for mis-pricing the products, first making them too expensive and then too cheap.

But much has changed since October 2008. These days, the world is all about guarantees...

MarketWatch (Powell): Annuities with guarantees can be useful retirement products -- but heed the risks