Using CDs and similar at 5% a year, they could draw about $24k a year for 20 years, then they're out of money. To make it last 30 years, the draw goes down th less than $20k a year. And that's with no increases for inflation. I don't think they can afford the risks of investing in the market. If they lose their principal, they're toast.Hi Peter,I am pretty far from retirement (34 y.o) but these numbers maid me think about fixed annuity,I don't know much about them, and have heard a lot of bad things especially about variable annuities and fees and bad advisers etc.But I checked Vanguard and their "Vanguard Lifetime Income Program" - look like it might be little bit better, because the scenario you described ($20K/year, no increase for inflation) will leave no money after 30 years, and $20 in today dollars will be about $10 in 30 years given 2.5% inflation, Vanguard program gives $21,916.32/year for life of both spouses, if they surrender $300,000 now or $15,295.32/year inflation adjusted , which is about the same,but at least GUARANTEED for longer life and GURANTEED against higher inflation, if this something worth checking or I am missing something?thanks,Yuri
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