Retirement Annuities--Should you Buy an Income Annuity (SPIA) in Retirement

Should you use some or all of your retirement savings to buy an income annuity? That's the question we look at in this video. Called a Single Premium Immediate Annuity, these annuities don't come with all of the fees and complexities of other annuity products. Yet it can still be difficult to decide if you need one, when you should buy it, and how much you should invest.
In this video I'll share annuity calculators, an annuity formula and a number of resources that can help you decide whether an income annuity is right for you in retirement.
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ABOUT ME
While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (amzn.to/3by10EE)
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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.
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[@badabing308]

Watching this a year later, so this is a late comment. The one important oversight in this was bringing Social Security claiming strategy into the mix. Delaying SS is generally the same thing as buying an additional inflation proofed annuity at far better than market rates. What this means is that for most circumstances, the very first move when "investing" in an annuity is to defer SS. It doesn't make financial sense for most circumstances to take SS early and then buy a commercial annuity. If you want/need more annuity payments than is provided by delaying SS to age 70, then consider buying some commercial SPIA. But defer SS first, it's a better deal for "investing" your annuity budget.

[@bernarddy8547]

Excellent point and I hope more people read your comment. In decisions about both annuities and SS, you are gambling against your life expectancy.

[@bobackerman54]

i was looking for a comment similar to yours ... the "SOCIAL SECURITY ANNUITY" has a COLA ... sure seems like the way to go !!!

[@HB-yq8gy]

Awesome explanation I was thinking along the same lines. I am 59 y/o retired 10 years now with a non-covered pension. My wife is 60 y/o a nurse will be retired at 62 y/o. My SSA survival and spousal benefits offset to zero because of my state pension. If her breast cancer doesn't return maybe an annuity might look attractive.

[@StressLessFinancial]

Great point on Social Security! Delaying SS can indeed provide a solid foundation akin to an inflation-protected annuity. How do you weigh the decision between delaying SS and investing in commercial SPIAs for your retirement income strategy?

[@arinco6944]

I replaced my bond investment with an income annuity for lifetime income for me and my spouse. If I need inflation, I will go to my stock portfolio. The mortality credits on the annuity is what makes them an extremely unique investment. We can never run out of money even if we use all of our principal and earnings in the annuity, and it is not tied to the volatility of the the stock market. Wade Pfau's research on the Efficient Frontier recommends using an annuity and stocks for sustainable retirement income.

[@Gzluweez]

There’s a book called something like “when I get stupid”-it’s about protecting yourself from your future self. A stream of income that is protected from elder abuse, bad decisions. I’ve seen this over and over. High functioning elderly left on their own too much (or too stubborn for help, or no one to ask) making really bad decisions/being taken advantage of. It’s very difficult to make sound decisions under stress. Think about what it’s going to look like when you’re dealing with health issues, depression, anxiety. You can also invest more aggressively in the residual portfolio.

[@barrystover9860]

Good balanced presentation. I think for retirees with a modest nest egg, an income annuity makes lots of sense for 'some' of their bond or safe money. The longevity value proposition is real. To guarantee some basic income while you watch your balance of the retirement fund grow brings some security. So for many, maybe 10% or 15% of their nest egg in an income annuity can make lots of sense. For married couples getting a joint payout is good. It is as you say, a longevity play. But for those w enough money...probably not necessary.

[@jasonhawkins2717]

Was curious about annuities watched a few KZbin videos that still left me with questions, finally thought I should see if Rob has a video on this, and of course he did and now I understand. Excellent breakdown as always “Dr” Berger, thank you!

[@MrMaxamillion67]

I have a pension and looking at taking it as an annuity vs the lump sum payout. I think taking the annuity and taking Social Security at 67 or 70, I would only have to take out about 2% of my portfolio to help with the upkeep of inflation.

[@iamwell5654]

Annuity is a great way to create another source of income. Essentially you’re creating your own little pension.

[@jacksmith2911]

Excellent way of using Portfolio Visualizer to look at pros/cons of an SPIA. I am 69 and do a Boglehead type portfolio. Whether doing a $40k withdrawal or a fixed percent like 3%, makes no sense for me to get into an SPIA at this time. Will review again in a couple years. Thanks for this KZbin,

[@philipdamask2279]

Rob, One thing to consider is income tax rates, both state and federal. People should not forget the annuity income is dumped on top of all your other sources of income and will therefore be taxed at the maximum tax rate you find yourself in. This is really bad when you also have high MRD's from your IRA.

[@voyagerprobe]

The way around this is to purchase a well structured, fully funded IUL ( Indexed universal life policy), once a year or more has passed, one can take withdrawals in the form of loans which aren't taxed. On top of this , one can leave a huge death benefit to the heirs which isn't taxed, and one can sleep knowing that they don't have to worry about what the stock market does. There are other benefits too, but one should do their own research.

[@tixe9]

😂 more fee's

[@MJT821]

Great video! I was curious how the rates quoted two years ago when this video was made compare to today so I went to the Schwab website and input same info ... $100K investment, 65 year old male residing in AL and the rate quoted is $678/mo. That's $191 or 39% more per month than quoted when the video was first made ($487). Can you share what may be responsible for the increase in the monthly payout? Is it tied to treasuries or rates set by the federal reserve? What influences the payout amount? I am interested in purchasing a SPIA and am wondering if I should do that now or wait a few months or longer if there is potential for the payout to increase. THANKS!

[@johnwilson839]

if you want a lifetime income annuity, please consider getting social security retirement income at age 70 first. The premium is the income you forego from age 62 thru 69 and the annuity you receive is the difference in S.S. retirement income between taking it at 70 vs 62. Last time I ran the numbers it wasn't even close, but you should run the numbers yourself. Also the S.S. "annuity" is inflation adjusted.

[@boris7417]

Tremendous video. I am 75 trying to solve this problem about annuity. It’s a great help. Thank you 🙏🏻

[@marshallhosel1247]

Thanks for another informative video. I've never really thought much about annuities, but as rates rise to more historical norms, they may be more interesting for many.

[@brianjp18]

I think moving a percentage of your bond allocation into an annuity is not a bad idea, especially if the interest rate environment is favorable.

[@urbanart7325]

It's a out retirement income vs investment allocation. Cover your living expenses and have the market does what it does. Also you can buy a joint longevity annuity that will cover both partners and maybe pay for future medical cost. Too many financial advisors don't like annuity be auar it's reduces their under management funds

[@DaystarHiker]

As of right now. A single life with 10 year certain annuity at the Schwab link you provided with payments starting in 2026 pays 8.7%. Starting next year (2024) pays 7.4%.

[@Chris-sj5lj]

Hi Rob, Thank you for the deep dive! Just starting to plan for retirement, projecting to do it in the next 3 or so years. Annuties seem to be a fave with fee only financial planners these days and as a "beginner" in my retirement financial education, your post provided excellent information.

[@davidweden1413]

I've recently done a lot of research on annuities, as we get ready for retirement. I agree completely with Rob Berger's analysis in this video. Generally, I think it's good practice to keep insurance products and investments separate, such as with life insurance. I think SPIA contracts rarely make sense, however, I can see using SPDAs (deferred annuity policies) as a way to reduce or eliminate the risk of living too long.

[@stevensonnewberry8724]

Enjoy your vids. Very informative plus unedited delivery adds so much. Thank you.

[@epost1978]

Thankyou Rob, I know this video is a from a year ago.......You brought up alot of excellent points.....you're a very logical and thought provoking Gentleman....appreciate your insights.....just subscribed 😀

[@gatsby6815]

Thank you Sir. Just came across your vid. Excellent presentation, I have my Jackson annuity in joint survivorship that pays me 5% along with a corporate pension and SS. The goal is to cover all my living expenses with a buffer for inflation. Other monies can rest a while in a ‘safe place’ until this market sorts itself out.

[@dmoon9037]

impressive list of resources in the episode notes -- thank you for putting together that list for us spectators

[@cecilwampler8733]

I learned a lot from this video. Very carefully explained. Thank you.

[@mcooper9493]

Thank you for the video. You seem very trustworthy and made your points very well. It helped me a lot.

[@pware9643]

Amazing how prevailing interest rates play such a big part in these payouts.. running the same numbers now in oct '23 , the life only is 8,280 a year vrs your example from two yrs ago at 5,844 a year.. time for an updated youtube video ! One might run a savings withdrawal calculator to compare the results.. for example.. $100k invested with a 5 % return and drawing down 7296 a year (the 20 yr certain current number) the account would last about 21 years.. so the annuity wins if you live past age 88 in this example.

[@liaroozendaal4186]

Not sure if you read older videos comments but I have been thinking about annuities (close to retirement as such). I would love a brief follow up on this excellent video. You talked about annuities not being inflation adjusted but not about the 'admin' fees and that the monthly payout is calculated as reg. income tax and therefor how that may affect a retiree's decision whether or not to buy annuities. I much appreciate your insight.

[@dominiqueferguson2480]

This was a really helpful and well-articulated video on retirement annuities. Thank you for it!

[@1jet55]

/would love to see Rob work thru this idea with todays rates. Have been looking at a SPIA and I am approaching 70 with nobody anywhere In my family on any side ever reaching 90. Never see any discussions for those of us in this ball park.

[@gg80108]

Eat lots of free dinners. I found FIA with income rider is the way to go. For income you can chose to take non-annuitized! Different outcome for your heirs. I got two FIA Annuities with income rider, non-annuitized payouts and other features. Mine are just cooking (rollup) now since I bought them for SS replacement.

[@dougprw1110]

The problem is the last thing I need is more “uncontrolled” income on top of social security and rmds.

[@vinyl1Earthlink]

Do those who spend only 2.5% of their assets spend very little? Some of them, maybe, but not others! I can think of a few retired guys who have a savings rate, not a withdrawal rate.

[@b320i3]

Thanks Nick. Treasury bonds are leaking and I think you are suggesting the same maybe possible for annuities. What's left? Not seeing a clear path going forward. It maybe time for me to call time out and sit on the sidelines for a while until something materializes and impacts the system....like perhaps..... Inflation.

[@stewarthunt1722]

FWIF I'm comparing my pending-retirement wife's modest pension to the estimated annuity tools on Schwab and Fidelity. The annuities are $100+ less per month than her company's monthly pension payment. That's a big bite!

[@urbanart7325]

Maybe those investment firms do not want you to invest in annuities. No fees for them?

[@twomp1162]

Hello like your blogs, very informative. Here's a kind long question. 1. Want to see what u think? . Annuity question. Have $300K, want a fixed immediate @5% annually. for 10,15 or 20 years Is that doable ? 5% of $300K is $15,000. If so, how does that work? If no, why not? 2. What are the fees or service charges for this kind of annuity? Are fee/service charge monthly/annually? Will fees increase over time and by what percentage? Looking for feeedback from all sources. Thanks in advance.

[@AshleyShemain]

Have you done a video on creating your own annuity? It may not make sense, but why can’t someone do it themselves? Is it too difficult? I’m a novice, but seems like it would be better to replicate it and keep the principal for the family.

[@MikeEldridgeCRPC]

You can. Just build a treasury ladder from year 0 to year 30 or whenever you think you would die. Obviously there is quite a bit of math involved. The main two benefits of income annuities, from my point of view, is simplicity, and the life insurance piece. The simplicity piece comes into play with retirees that don't know that much, or don't want to build their own treasury ladder or manage a portfolio. They would rather have that time back to enjoy their retirement. The life insurance piece is helpful since the annuity companies can insure against longevity, which you as the individual can not do. You can always pick the annuity with 20 year guaranteed if the principal loss worries you. Usually doesn't ding your payment too much.

[@markg7341]

CDs are backed by the FDIC, treasury bills by the full faith and credit of the US government. How does the guarantee provided by the insurance company issuing the contract compare - what if they fail?

[@flowersfrom7311]

The formula dictates that the better annuity is, that is the bigger AR it pays, the less of it I should buy. It doesn't make sense.

[@scottprice4813]

I've got a Jackson national flexible premium fixed annuity that was issued in 1991 and is based on 1971 mortality tables. It pays 3% guaranteed and the pay table is amazing. I can put up to five million into it with additional contributions having no surrender fees. Only the first contribution back in 1991 was subject to surrender charges. If annuitized the payback is 11.3 years and the payout rate (Which goes up a little each year) is currently 8.3% at age 61. With this set of circumstances I'm thinking putting more in above the $300,000 state guarantee is a good bet. Opinions?

[@ronbloom7173]

I have 3 annuities that are all have a 3% inflation rate Plus when i die my beneficiares get all the money back Pacific Life

[@urbanart7325]

Can you please present ideas how to develop retirement income vs investment allocation. How to minimize tax liability during retirement

[@josephjuno9555]

This video is from 2021. I got a quote June 2024 with higher intrest Rates. 62 male in Michigan recieve $1000 per month wud cost $163k it wud break even at 13.5 yr so I would be 75 $1000 p mo so if I live 20 yr is $200,000 25 YR IS $300,000

[@medwayhistory3101]

I’m writing from Ontario Canada and I really enjoyed the episode and am interested. In about a decade, I will have a defined benefit pensions which will be taxed as income. I see the annuity as basically the same in that it would be a second guaranteed form of income. Am I correct in that there will be similar tax implications as well he monthly deposit will be treated as income without the benefits of increasing the RSP contribution room? Thanks!

[@Steve_SEC]

What do you think of QLAC and which company is reliable enough to purchase them?

[@basamnath2883]

Rob , great video with tonnes of information . Could you please share the list of companies that we can buy annuities. I hear companies like Fidelity and vanguard also offer annuities. Is that true

[@rob_berger]

Fidelity does sell annuities: www.fidelity.com/annuities/overview I don't believe Vanguard does. I've never bought one, so don't have an opinion on Fidelity.

[@b320i3]

Thanks for the Great Information Rob. I have a simple I think question. When will Bonds stop leaking money. I don't understand why the 10 and 30 year Treasury continues to decrease in value. I bring that up because to me it makes a strong case for purchasing a (stable) annuity?

[@neysatg]

My WR is high and the final value I get is 110. That can't be correct. For the top I have 8.8 - 4 and the bottom is 7.5-4.

[@berg8970]

I personally can't see any scenario where an annuity would be a good fit for me.

[@keithgegg997]

Very thorough, thanks!

[@jaybrown6174]

Bob, if I buy an annuity using money from an IRA how does that effect your yearly RMD requirement? If for example I buy an annuity using a significant chunk of my IRA would I still have to compute my RMD each year by including the amount I paid for the annuity plus the money left in my IRA?

[@olfart7902]

Only with a QLAC you can postpone RMD requirements..... with a SPIA using IRA money the amount you receive each year will be subtracted from your RMD requirements...yes you would add the annuity value to the remaining IRA to compute RMDs...hope that helps....a little info than you asked for 😀

[@manuvns]

ca you do a video on purchasing MYGAs (multi year guaranteed annuities) since the rates are high now

[@jettfinancial]

Its amazing how many people in Texas do not realize pensions are funded by annuities. People happy about their income certainty have pensions. Business owners must create their own retirement plan and pension, which are funded with annuities. Social security is bankrupt and at the mercy of political risk every cycle.

[@vincentslusser9205]

Appreciate your input on this.

[@crimsonpearl4686]

Rob, what are your thoughts on TIAA's traditional fixed annuity? Pays minimum 3% up to 4%.

[@bob-ix2ky]

how do you handle RMD`s? you cant touch what you gave to the insurance company. im sure its counted in your IRA balance for RMD~s

[@whatwhome6914]

It is very misleading when someone talks about a 'rate of turn' on an annuity. Since with an annuity you have lost the entire principal, the money you get per year isn't really a 'rate of turn' on your investment.

[@wilma6235]

I have an annuity with after tax dollars, I had to leave there for 5 years. At the end of 5 years, I plan to cash it out and invest elsewhere. I could leave it and Annuitized it later, but I don’t recall Payments for Life. I’m thinking it until the money runs out. I could also let it set there and my beneficiaries would get it. What’s your opinion?

[@financialownership]

Really enjoyed the video great objective information!

[@urbanart7325]

You made lots of great points and made me thinking about taking a portion of my savings and investing in an annuity.

[@josevalverde2263]

The monthly guaranteed makes inflation adjustments?

[@tiffanyyin8762]

Hi, Rob . what do you think about variable annuity ? people say is has higher potential growth than GLI and GFI

[@Nettechnologist]

Wonder about annuity laddering say every 5 yrs as part of your bond portfolio portion as you retire where when you get older your bond portion would generally increase and you could annuitize a portion of that to guarantee. I’m nearly 50 and 90/10 mix, but my wife wants more guarantee’d income and fearful of the market, while I’m more bullish.

[@rob_berger]

Definitely a solid strategy. I don't need annuities, but if I did, I would likely ladder them. Pros and cons, like anything in life. But I do like the strategy.

[@jrhaywood49]

Where are the links?

[@gardengirl6636]

Excellent! Thank you!

[@davidw1732]

Question. Now, 1 year later, given the rates we have today what are your thoughts on the following: I am 60 yrs old. Should I put money into a deferred fixed annuity to lock in todays rates?

[@rob_berger]

You just can't answer that question in a vacuum in my opinion. Needs to be based on your entire financial picture and your own personal approach to funding retirement.

[@emc6511]

From what I've observed, the increase in interest rates have benefited MYGA greatly and really have not affected SPIA or DIA; same payouts as before FED increases. Makes sense; for MYGA the carriers are matching our payout with short term treasuries etc which are UP ... long term treasuries are lower return than short term ... AKA the inverted yield curve situation that persists. So long term SPIA and DIA not joining the party. Maybe when we see MYGA rates deflate will be the pivot to consider long term SPIA DIA. Not that they will be better than now; just that MYGA will not be better than SPIA DIA as they are now.

[@BearPapa49]

My plan is to invest into a myga to a spia . Stan the annuity man gave me some good insights on this strategy. What are your thoughts on it ?

[@missouri6014]

I’m glad that you went to Stan the Man because what he says is so true and accurate

[@alanlundberg4534]

Great video! Very well presented.

[@joshuahenderson5399]

Love the show!

[@nancymassey3974]

What is your opinion of laddered annuities?

[@basamnath2883]

God bless you

[@teambigv]

What good would 10% bonds in Buffets 90/10 portfolio do for you?

[@Zacon2mlg]

shout out the lawn mower in the background LOL

[@lostmylaundrylist9997]

Thank you Rob.

[@scott1441]

A 10 /3 approach is better than an annuity - split portfolio in half - 10 years in CASH , withdrawing annually and 3 LOW FEE ALLOCATTED PORTFOLIO ( s/ term investment grade 35%, balanced 40% , and value equity 25%) The 3 investments compound and rebalance for 10 years and the CASH is flexible in terms of amount the annual withdrawal rates during the first 10 years. Annuity offers no flexibility

[@johnkumpelis1121]

Yikes! 10 years in cash....quite a drag on returns. You must have a large nest egg and small withdrawal rate?

[@urbanart7325]

You didn't mention that the annuity can be passed to your spouse

[@hanwagu9967]

yeah, for an additional/fee cost and benefit.

[@ultramegasuper11]

Thanks . Great Stuff !

[@antoniobranch]

I guess you can say an annuity, like social security, is supplemental income. "Never buy something you can't auction or pawn."

[@johnkumpelis1121]

Hey Rob, love this podcast, very timely. I'm very curious you thoughts about the podcast "Fun with Annuities"..let say episode #48. Reasons for an Annuity ..Acronym "PILL". I would love you thoughts on this....thanks for all you do!

[@rob_berger]

I'll check it out.

[@CallSignWhiplash]

An IA with a LTC Rider might be a good idea for people with certain genetic health risks.

[@YG-fo5rl]

No. Why would you give up your $ to someone else to manage and for them to pay you a monthly on the assumption that they will help you make $, not to mention to cut a fee for themselves in the process. I say take what you have, throw it into either an index fund or even a CD and pay yourself that way. In today's day and age, to trust corporations or others to do the right thing for you will never happen.

[@Gzluweez]

Because you may have a stroke or mild cognitive impairment and you need some of this stuff automated.

[@iamwell5654]

Because it’s guaranteed for life, regardless of what the market does. If structured correctly you can make off like a bandit.

[@aasavickas]

Excellent Video!!!

[@Lisa-jy7bk]

We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2024, how can we enhance our earnings during this period of adjustment? I cannot let my $680,000 savings vanish after putting in so much effort to accumulate them.

[@Helen-tg4tr]

Keeping some gold is usually a wise decision. You would be better off keeping away from equities for a bit or, even better, seeking advice from an expert given the current market conditions and everything that is at risk with the current economy.

[@heidikamrath1951]

SCAM ALERT

[@gk_filer]

So If I have a Income annuity at 200k And a total including annuity portfolio of 1,000,000 Does the amount coming out of the Income annuity count towards RMD's at 73 or are the RMD's calculated on the 800k balance? Thanks

[@dokada1]

I have an income annuity. From what I understand it does not count toward RMD's.

[@johntamulonis4626]

Good info! Thanks for sharing.

[@urbanart7325]

What percent of American retirees even have a portfolio. Period.

[@johngill2853]

But that has nothing to do with a single premium immediate annuity and if it fits your situation. Obviously if you have no money it's a mute point or if you have a ton of money it's probably a mute point

[@ljrockstar69]

This insurance person is trying to sell me this kind of investment and keeps pushing it and say that it outperforms the S&P. Is this true?

[@hanwagu9967]

no. person keeps pushing because of his fat commission and huge profit margin for peddling crappy annuities.

[@jrcll7856]

geez, i used the calculator on stan the annuity guy website and at 63 at 100k... i would get 611.00 a month

[@urbanart7325]

I would like to get your thoughts on Jerry Golden and his approach to annuities and retirement income

[@sherriel.s.robinson7781]

Tell me are you a licensed insurance Agent with the State of Utah?

[@tim71pos]

One thought: if you are getting ready to retire and you are not in the habit of walking 2 mi a day, don't bother buying an annuity. You going to croak.

[@winstonsmiths2449]

Unless you have money to BURN, stay away from annuities. Bonds are junk. The guarantee is good until it isn't. The money from your annuity payment is invested, and many funds are invested in bonds, by law.

[@junyang2109]

Thanks a lot

[@bencheung2407]

Another great video! How would you consider annuity as part of the "60/40" portfolio? Would it belong to the 'bond' bucket? Or is it separate from the 60/40 allocation? TIA!

[@ALowe-d1d]

What is ARF

[@jillhotvet1977]

Rob, really good explanation regarding the target fund cap gain situation. I had a large cap gain and called VG after seeing an article in the WSJ. They had someone reach out to me. He basically scolded me for having the fund in a taxable account, but he also said the cap gains have been high in general in that fund in the past. I went back the 9 years I could go back and wrote back that his statement was false and listed the gains. My resulting cap gain amount was many times that of the previous 9 years. Ouch. Question, as a class action attorney, does the claimant end up with less, in general, than they would if they sued on their own? Is it possible to join the original plaintiffs once the suit has been filed? Do you have any idea how many pennies on the dollar you can expect in a class action suit like this? Would the proceeds be taxable? Thank you

[@bertsadventures9974]

Hey Rob! I'm about 10 years from retirement and am considering an Annuity as a way to payoff my mortgage, lump sum, at a point in the future. Plan is to invest about $200k in the annuity which is what I would owe based on the mortgage amortization schedule for the date I want to retire. My goal is to guarantee the money is there which is why I'm considering this as part of my 401k rollover. Bad or good idea?

[@sergiosantana4658]

Have you considered the tax implications when you draw the lump sum to pay off the mortgage.

[@kingkang6877]

My rule is: Never buy an insurance policy that is tied into a financial instrument

[@johngill2853]

Which in general is good advice But when you get older the mortality credits make the single premium immediate annuity very appealing for some people. It's not for everybody

[@vapeking466]

My fiduciary told me to never ever invest in annuities! Unfortunately I already had one that was left to me. It's does earn interest but very little 2%. Now it may somehow be good for certain situations but be very careful in shopping for them if you decide to go for one. Beware banks push them because they earn a commission when you get one! An iseries bond maybe a much better option as it pays interest at the rate of inflation.

[@jhtranPharmD]

The best annuity one can buy is to delay social security.

[@RonaldCJones]

Very interesting comment and, honestly, an alternative that I had not considered. However, you could certainly withdraw from savings or other retirement funds to delay the SS start date until 70.

[@terryadams1830]

@@RonaldCJones That's what I'm doing. I'm going to delay SS until one of the following happens: 1. I run out of the money remaining in my IRA and have to start drawing from my ROTH 2. The market drops and I don't want to draw out funds when it is low 3. I reach 70

[@BK-dy8jk]

My friend delayed Social Security and then died two years after receiving Social Security so better get it early and have it for long instead of two years and die.

[@johngill2853]

@@BK-dy8jk that is called confirmation bias,the average person once they reach 62 lives another 20 years

[@coutureleotards]

I have recently heard many people doing just this. Waiting till 70 to start ssi. Along with their IRA and other retirement RMDs.

[@krihanek117]

If we were in a time with historically high interest rates would it make sense to lock in a annuity rate? Depending on your age, etc. P.S. I love this channel, thanks.

[@AAB463]

OR if inflation is at historically high rates…seems to be a good solution.

[@johngill2853]

@@AAB463 I'm confused why do you think SPIA is good in high inflation period?

[@AAB463]

Yeah…I don’t know what I was thinking!

[@masoncnc]

QYLD and forget it