How Does a Lifetime Income Annuity Work?

[jopalo]

I was sold in the first minute... great job

[paulstevens]

I have 2 annuities $100, 000 each. I am 58 and will be able to retire at 62 with no worries!

[ralphparker]

In the analogy, each year, one person lost all her money, of course she didn't need it anymore. But the annuity pool contains Thousands or millions of participants. You won't get 25% growth each year. Wade Pfau talks about the advantages of turning a portion of your retirement funds into an income stream and how it can help risk reduce your situation. My take is that if can cover your basic expenses in either or combination of pension, annuity, social security or other guaranteed stream, then you will a very warm security blanket. But the is also benefit to having funds in aggressive growth, especially for those who are still young.

[ShermanOn]

great analogy explaining longevity credits.

[charliewilkins]

I have a Life time Annuity. My Family crrated ecurity for the rest of my And I live by the minimalist concept too. It may not work for everyone... It works for me.

[mattnezz]

how do you protect from inflation. If you get a lifetime annuity for 20 30 40 years, if you assume 5% per year on the currency you'd lose out slowly. Are annuity payouts re assessed to adjust for inflation?

[TerryD]

If I put $100k in, what are the total fees / commissions in the first year?

[dwighta]

Let’s say you buy two annuities for a total of $200k. What happens to that principal if you and your wife suddenly pass away? Can that money be inherited by the children?

[rockyneale]

That's why you have to do business with a AAA rated company