No. of Recommendations: 0
As an advisor that sometimes sells annuities, I would agree with your conclusion.

If they need immediate income (which is what an immediate annuity is designed to do), it is typically to replace or duplicate a pension.

Pensions don't generally fluctuate their payments - except to occasionally give a small increase due to inflation or cost of living (depending on the company).

An equity indexed annuity - which is what this sounds like - is more for accumulation than it is for distribution.

If they need immediate guaranteed income, I would look to a company that has a policy specifically for such. I would also look for the option of "period certain" so that if both parents go early, the estate doesn't lose those payments for a few years.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.