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Is An Annuity A Good Way To Guarantee Income?

Saturday, February 16, 2013 - 9:34 AM
This USA Today article provides a good overview of fixed annuities with a list of the pros and cons. One downside with fixed annuities today is the current interest rate environment:
with current interest rates at historic lows, fixed annuity payouts are also relatively low. For example, a 60-year-old male might expect to receive a 5% annual return for each dollar invested in a fixed annuity

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Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708
1. Saturday, February 16, 2013 - 4:39 PM
Instead of giving a big lump sum of money to an insurance company, why can't "we" be our own Annuity?  For example, have a CD even with these low interest rates, in short term instruments so that we can cash them out at certain times when we need more funds.    This way we are the ones paying ourselves back little by little and we don't have to give a lump sum to an insurance to pay us back over the years.  Also "if" interest rates go up, we are in control of our funds and can snatch up any higher paying CDs we can find.  After a certain age, we have to expect to cash in a certain part of our savings for those unexpected bills.  Just my way of doing things but may not appeal to many others.
paoli2paoli21,406 posts since
Aug 10, 2011
Rep Points: 6,151
2. Tuesday, February 19, 2013 - 4:13 PM
i have three annunities that  generate approx 15k per year how about that for a SERIOUS ISSUE   IN ADDITION A PENSION REGULAR BROKERAGE ACCOUNT JUST WAITING FOR SS TO KICK IN CHACHING
ilklessilkless4 posts since
Feb 12, 2013
Rep Points: 5