Income annuities can play a HUGE role in any successful retirement plan.

Unfortunately, many people overlook the benefit of annuities because they hear all the negativity surrounding them. The fees are too high. They are sold by shameless agents. The commissions are too high. They never perform as advertised.

These are all issues with Variable and Indexed annuities, NOT income annuities.

Income annuities could not be more simple. You put in X and you get back Y for Z number of years. It’s literally that easy to understand.

No other product can provide you the same level of guaranteed income for your investment dollars as an income annuity. Nothing even comes close. So, if income is something you are interested in, you need to consider an income annuity.

In this video I show you have a JOINT LIFE income annuity works and what you need to consider BEFORE you make the commitment to purchase one.


18 replies
  1. Ken Bedsole
    Ken Bedsole says:

    For funds outside of a tax deferred wrapper, the interest is essentially double taxed IF both die within 17.2 years (when the annuity has returned the $100K). (Don't shout, I know the terminology is clumsy.) The IRR for 20, 25 and 30 years is:
    20 yr 1.471%
    25 yr 3.102%
    30 yr 4.036%
    Given the restrictions on annuities including loss of access to the money, I will pass as I don't want cash tied up for 20 years at under 1.5%. If you are unwilling or unable to weather significant downturns in the market, this could be an option with the realization that you will potentially give up significant return. Even when compared to a savings account at 1.5% (variable to be sure, laddered CDs would likely be better) there is only marginal benefit and, in my opinion, more risk of loss.

  2. Sylvan Butler
    Sylvan Butler says:

    To understand the odds of life increasing for a couple, think about it in reverse, as the odds of dying.
    If someone has a 20% chance of living to 95, that means a 80% chance to die before 90. Someone else has a 32% chance of living to 90, that means a 68% chance of dying before 90. If you look at them together, A has 80% chance of dying, B has 68% chance of dying, then the chance of BOTH of them dying is less than either alone dying.
    You calculate the odds of both dying by multiplying the individual odds of death, or 80% times 68%. You get 54.4% of both dying. Probably the numbers are rounded off, so you get 55% chance of both dying, or 45% chance of at least one living until 90.

  3. Jms Fabrication
    Jms Fabrication says:

    You touched on it a little bit. I have read that if the insurance company that has your annuity goes belly up, the state you live in (at the time they go bankrupt), has a gaurantee. Here in Michigan, I believe it's $100k.

  4. Spartangirl 2020
    Spartangirl 2020 says:

    Enjoyed the video. What about a TIPS ladder for an I come stream? Lawrence K., author of the SS book mentioned this idea in an article. Distributions 2X yearly that can be managed as monthly income & inflation protection. The benefit seems to be growth of the principle & and no state/local tax on Gov't securities.

  5. Too-old Forthischet
    Too-old Forthischet says:

    I have an annuity for my monthly retirement income. The main reason I went this route is that my work's HR department said that my pension is NOT guaranteed for life and I was fortunate enough to have a cash buy out option. On top of that, the annuity can be acquired by my son when I pass. If I had opted for the pension, when I pass, that's it, it ends.

  6. Harry Langley
    Harry Langley says:

    Can you explain how an Income annuities affect your RMD? Say I had 900K and bought an IA for 300K when I retire at 60, how would that affect the remaining 600K? Great Video by the way.

  7. myvenusheeler
    myvenusheeler says:

    Immediate won't bother you ever.I have gotten numerous quotes from them over the last two years and as earlier as last week.No issues.I am not affiliated with them nor have I purchased one from them.They are going up slightly on the monthly payout because the 10 year bond is rising.That being said the payouts per Insurance company varies a good bit.


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