Are annuities really that bad?
I’ve spent most of my career skeptical of annuities. Especially the expensive, complicated products often sold to retirees. I don’t sell annuities. I don’t earn commissions from them. And in most cases, I still am skeptical of how they are ‘sold’and not planned for.
In this episode, I break down four surprising benefits of annuitizing part of your fixed income, especially if you’re approaching retirement with $1M+ saved and want a smarter retirement income strategy.
We’ll cover:
• Why everyone is a bull… until the market drops 10%
• How annuitization can reduce sequence of returns risk
• Why payout rates (like 6%–8%+) is hard to replicate with a ‘safe withdrawal rate’
• How annuities can actually improve legacy outcomes in certain scenarios
• The math behind lowering withdrawal pressure on your equity portfolio
• How to evaluate TIAA Traditional payout options and vintages
Retirement isn’t just about asset allocation.
It’s about income design.
And if you’re over 55, retiring soon, or already retired, understanding annuitization could materially impact your retirement income, stress level, and long-term legacy. Hope you find this useful.
-Kevin
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This is for general education purposes only and should not be considered as tax, legal, or investment advice.
