Retirees face two big risks: living 10 to 30+ years in retirement and not knowing what their investments will earn. An income annuity removes both by guaranteeing lifelong payments, eliminating the fear of running out of money.
Chapters
How do we get the most income out of our retirement savings without the risk of depleting our assets and possibly outliving our money? Because we can't know for sure how long we will live after we retire. 10 years, 20 years, 30 years, longer. So we cannot know how long we will need our retirement income to last. Into our 80s, our 90s, maybe even into our hundreds. And if our retirement savings are invested in stocks, bonds, or real estate, we cannot know for sure how much we will earn on those investments from one year to the next because markets crash, bonds default, and leases expire. So investment returns cannot be guaranteed, especially over 20 or 30 years of retirement, which means that we cannot depend on the income from our investments to always be enough or to last as long as we do. Because if our earnings are not high enough in some years to withdraw all the money we need to support our lifestyle, or if our investments should