No. of Recommendations: 2
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


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