Annuities

[mathjak107]

no inflation adjusted annuity's at all. no need for them when coupled with your own investing . your equity's handle all inflation adjusting .  not only will inflation adjusted annuity's fail to meet anyone's personal cost of living but they are to expensive once you add that feature.

in fact it may even be a better deal if you are married to take a single annuity instead of joint and use the difference to buy a single premium life policy for the spouse instead since that is tax free.

we are not talking about a stand alone annuity here , we are talking either substituting the bond portion of a conventional portfolio or some of the bond portion .

the biggest problem trying to substitute bonds for the higher annuity cash flow is that if rates rise over the next 30 years as they likely will , you need to sell bigger chunks of bonds each year as prices fall to generate that same 6% cash flow.

that will cause depletion in the bonds and cash  much earlier and then have to have other assets sold either earlier or in greater quantity  to replenish spending money.

this is why even with no roi success rates are higher when the annuity's are used vs bonds .

a good plan would be a LMP.  a liability matched portfolio.

the immediate annuity covers the non discretionary expenses  with a pay check monthly . your wants and inflation adjusting are handled by your own portfolio .

no matter what markets do that income floor will always be safe ,secure and consistent .
you would be hard pressed to find any accredited study showing anything else except under optimal investing conditions .