In exchange for a lump sum, annuities guarantee retirees regular payments for the rest of their lives. Sounds attractive, but investors have long shunned
annuities, citing high fees, low returns and inability to bequeath the money to heirs. Worst of all, there’s the “bus” risk — that is, the chance of getting
hit by one, or meeting some other untimely demise and not getting your money’s worth. As an investment, an annuity just doesn’t stack up.
is a no – brainer.
Start with a budget projecting monthly costs for shelter, food, utilities, and health care; then subtract Social Security and any other expected guaranteed
income payments. The gap figure could be plugged with an annuity.
deposited in your checking account. You don’t need to make decisions about how much to withdraw or how to invest, which can protect against mistakes
and fraud that can happen in your later years if you become less able to manage your money.
to consider all your options.
to build your own pension.