Life annuities are the topic of many conversations John Q Public is always turn between 2 extremes of how to invest his money, particularly retirement funds.
wants safety and his wife demands safety. But he doesn’t have a lot and he lost some in the 2008 crash. So what wins out, security or another mutual fund policy?
If he buys a mutual fund he may make money, perhaps not right now but soon. But there are zero guarantees and they are not getting any younger. He has never really understood what the market does; all he knows that he would like more income now and perhaps leave some to the kids.
The alternative to the mutual fund is a life annuity where the payments are guaranteed for both their lives. And if they die prematurely, the children will inherit the balance.
Only life annuities can give you peace of mind. I’ve seen people lose tens of thousands of dollars or more because they wanted to invest it in the market. The time to take risk is when you’re younger and if you don’t feel young, it’s time for security like a life annuity.