I am not sure what is the upper age at which one can buy an annuity. I think one sometimes hears that option goes away at age 85. Maybe someone knows for sure.If you get to the end of a 30-year TIPS ladder, you have a big worry: longevity. If you are 85 when the ladder runs out, extending it by 5 years isn't sufficient if you live to be 97.
What I would do is use the lump sum from year 30 to purchase a simple income annuity to provide longevity protection. The mortality credits from an annuity purchased at that age will be significant, and the impact of inflation will be less because of a shorter time horizon.
Statistics: Posted by dbr — Wed Jun 26, 2024 7:17 am — Replies 4 — Views 154