The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/i-dont-know-much-about-annuities-but-isnt-it-29637742.aspx

Subject:  Re: Vanguard Guaranteed Life Withdrawal Benefit Date:  10/30/2011  1:40 PM
Author:  culcha Number:  69738 of 75809

I don't know much about annuities ... but isn't it the case that even though the person has a guaranteed dollar amount of income, that dollar amount is fixed, and the forward march of inflation will mean that the purchasing power of that income will grow smaller and smaller?

This seems to compare most unfavorably with something like the 4% Safe Withdrawal Rate, which then adjusts the annual dollar amount withdrawn in order to keep up with inflation.

culcha
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us