Comments 1 - 9 of 9 Search these comments
As long as the annuity company doesn’t go balls up. Annuities are not insured.
Always look and see what the guaranteed rate of return is, typically it quite low.
In reality, annuities are not a 'great' investment. At best, they're the equivalent of having a tax deferred CD, for money which you don't need for another let's say 15 to 20 years.
I'm not really using all of my post-tax cash, on a day to day basis.
And thus, isn't it better to let that cash grow, tax deferred, on an annuity vehicle, with the idea that at the age of 59.5, I can get a steady paycheck "for life" or let's say a 20 year distribution.
So much can change, including the tax laws
And thus, isn't it better to let that cash grow, tax deferred, on an annuity vehicle, with the idea that at the age of 59.5, I can get a steady paycheck "for life" or let's say a 20 year distribution.
Sure, a huge chunk of one's post-tax portfolio should be in dividend investment (DRIP) equities, however, sometimes, it's better to lower one's annual tax burden and risk, by not playing at all.
The thing here is that insurance companies are heavily legislated and each state has its own rules for receivership, if an insurance company were to go bust. And so if you follow your state's rules, you should be able to create an annuity profile which is 100% backed by your vicinity.