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Further to my "absurd" comment about SPIA for reliable lifetime retirement income, here's an insightful article (with comnents) on this very topic.

http://www.advisorperspectives.com/newsletters12/Your_Client...

A consumer following an SWP [safe withdrawal plan] invests her assets at the start of retirement and withdraws funds over her lifetime. The key determinants of whether such a plan will succeed--meaning that the client will not outlive his funds--are the rate of return on the invested assets and the rate at which the consumer withdraws funds. By contrast, a retiree could instead purchase a SPIA from an insurance company and receive known payments for the rest of her life.
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Of course, Rayvt and sykesix would NEVER get a SPIA because (a) they're fortune tellers who know the future; (b) they have nerves of steel when the market crashes 50% and (c) they're religious about their investment/retirement strategy.
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