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Author: buzman Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75839  
Subject: Re: annuities 101 please Date: 2/1/2009 9:42 AM
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One can make a strong case for a single premium immediate annuity-SPIA_ for a portion of your assets.

The rationale is that you can increase your withdrawal rate. In a nutshell you are giving up estate value for current income.

Plus the variability of returns when making withdrawals from a portfolio can be minimized with incorporation of a SPIA.

Respectfully Bruce, I like the inflation adjustment option rider.

As far as insurance companies going belly-up, there is protection at the state level. This may or may not cover all losses.

AIG's annuity business is no reason to lose sleep. I wouldn't buy a new one from AIG though.

A Great Resource is Investing in an Uncertain Economy for Dummies specfically the annuity Tip

buzman

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