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WCI #246: Early Retirement Now

White Coat Investor Podcast

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Annuity Yields

A lot of people don't have a pension any more, and consider buying one from an insurance company using a spia. What do you think about that strategy of annuitizing part of the nest egg with a single premium immediate annuity? Ti: The whole annuity proposition is a really bad deal because interest rates are so lo right now. Even in the worst case scenario be something like a 19 seventies, repeat, you could do better than with an annuity with just a regular portfolio. And then social security is alsoa inflation adjusted so thats, that's still pretty good.

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