I see that you’ve addressed some of this already before I posted.
The question to ask yourselves is whether you need the $90,000/yearly income from the annuity.
My first prejudice is that being able to cover your basic retirement expenses through annuitized income — Social Security, pensions, and annuities — is a great benefit in retirement. Knowing that you can fund your core lifestyle without being concerned about your portfolio ups-and-downs gives a feeling of security.
I speak from experience.
But if you only need $120,000/year (for example) to cover your basic expenses, then there is no need to buy an annuity for $90,000 when you already have $86,000 from SS.
My other prejudice is that you don’t need to annuitize income that covers discretionary expenses like vacations, charitable donations, etc. Especially if you have heirs who you want to pass funds to (or gift to while alive).
It is worth looking at what the survivor’s finances will look like after the first spouse dies. That might affect how much you want to annuitize. Does the annuity cover both of your lifespans?
The question to ask yourselves is whether you need the $90,000/yearly income from the annuity.
My first prejudice is that being able to cover your basic retirement expenses through annuitized income — Social Security, pensions, and annuities — is a great benefit in retirement. Knowing that you can fund your core lifestyle without being concerned about your portfolio ups-and-downs gives a feeling of security.
I speak from experience.
But if you only need $120,000/year (for example) to cover your basic expenses, then there is no need to buy an annuity for $90,000 when you already have $86,000 from SS.
My other prejudice is that you don’t need to annuitize income that covers discretionary expenses like vacations, charitable donations, etc. Especially if you have heirs who you want to pass funds to (or gift to while alive).
It is worth looking at what the survivor’s finances will look like after the first spouse dies. That might affect how much you want to annuitize. Does the annuity cover both of your lifespans?
Statistics: Posted by delamer — Sat Aug 31, 2024 8:23 pm — Replies 14 — Views 430