Jill on Money with Jill Schlesinger Is the Annuity Too Good to Be True?
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Jun 27, 2025 This discussion dives into the allure of annuities as a means to generate guaranteed income during retirement. A couple shares their initial skepticism but considers expert advice while evaluating their unique financial situation. The host critiques a financial planner's proposal, exploring the potential benefits and drawbacks of annuities versus alternative investment strategies. Misconceptions about annuities are addressed, emphasizing the importance of informed financial planning and the value of getting a second opinion from a knowledgeable advisor.
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Couple's Retirement and Savings Story
- Steve retired at 58 due to good savings, no big pension. Lisa still works but plans to retire soon, managing their finances carefully.
- They've accumulated significant assets across multiple accounts and brokerage firms.
Annuities vs Drawing Savings
- Annuitizing part of a retirement portfolio aims to create a guaranteed income stream before Social Security starts.
- But with substantial assets, drawing systematically from savings may suffice to create income without insurance fees.
Create Income Without Annuities
- To create consistent retirement income, consider bond ladders or CD maturities instead of annuities.
- Start withdrawing to optimize tax brackets early, especially from traditional IRAs before Social Security.