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Annuities - how to work into Fin Plan

Started by rtysmith, October 03, 2018, 11:20:14 AM

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What is the communities thoughts on Annuities?

I know its not part of the typical "first round" of long-term investment, but from my super-rich friends they do hint that it is a part of there planning, as the last line of defense/part of a very diversified plan (maybe 5%?)

Jon Sharpe

I'm not retired yet, but I know that a common and conservative strategy is to use an immediate annuity to shore up your pension and social security payments so that all of your known fixed costs are covered. That way, in a worst-case financial scenario, all of your living costs are covered. Then you invest the rest of your portfolio and use those returns for travel and other extras. Seems like a reasonable approach.