No. of Recommendations: 1
Author: 3muttsmom | Date: 4/21/05 7:15 AM | Number: 45684
...with a 4-5% SWR, living on $45k when you've got over a million socked away will probably look crazy to those you leave behind, in hindsight. But, as well all know, there's just no way to know how long it needs to last until you're gone.

If I suspected this situation concerning myself, I'd be tempted to annuitize the million, which would guaranty nearly $70,000 per year for the rest of my life. That's a whole lot better than trying to preserve the million for heirs - especially when they think like that.

See .

Of course, if you annuitize, there is nothing left for the heirs when you die. Some people annuitize only half their portfolio. It's something to think about.

BTW, immediate annuities can have very low expenses. It's variable annuities you should usually avoid. They are primarilly designed to line the broker's pockets.

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