Good points. Note also, with fixed term annuities, e.g. a 10 year, the annuitant received all his principal back, with interest, over the course of the term; should the annuitant die his heirs continue to receive payments.You can look at the good annuities, the "Multi-Year Guaranteed Annuities" or MYGAs. They are CD like in that they will provide a stream of income, and at the end of the contract period you get your principal back.
https://www.blueprintincome.com/
https://www.immediatennuities.com/
These MYGAs are offered by insurance companies, not banks, they are not therefore "insured by FDIC" etc. There is a State Guaranty Association in each state that regulates these entities, but even so, I do not advise to commit more than $250k in them, plus I'd stick with A rated or better insurers to increase the likelihood that the insurance company will still be alive at the end of the contract period.
The yields are attractive, you get 4.9% from A+ rated insurers and 5.1% from A rated insurers, up to 10 years in the future.
Quotes for a 64-year old in Washington state:
https://www.blueprintincome.com/fixed-a ... 1&rating=A
Often a “life annuity” is the best choice—but often not.
Statistics: Posted by smectym — Thu Nov 28, 2024 5:40 am — Replies 91 — Views 13063