No. of Recommendations: 1
With all the negative press on annuities, I'm surprised that a type of annuity--the single-payment immediate annuity (SPIA)--is not mentioned. These "annuity salesmen" are selling deferred annuities, not the SPIA. With an SPIA, you're basically buying yourself a pension that begins right away. Under the right circumstances, using a portion of one's assets for this product can be prudent for a retiree. I know that both Vanguard and Fidelity, in addition to insurance companies, offer them.

The article was about selling bad annuities. In this board's FAQs, there is a section on immediate annuities, with a discussion of for whom they may be an appropriate choice.

Unfortunately, the finance and insurance industries, and the usually shoddy reporting that covers them, does a poor job of explaining "fixed-income" (or stocks, for that matter) options and issues for choosing between them. Trying to do this right was why it took us two years to put the FAQs together.
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