Just wanted to call out the point above about the impacts of inflation. To my knowledge, there are no "inflation adjusted SPIA" anymore. You might be able to get one with 1% or 2%, but effectively an annuity is going to have less "purchasing power" each year, over 10+ years maybe significantly so.I too looked at the annuity idea so I would not have potential headaches of calls for money. I dismissed the idea in my situation for a few reasons: I do not like SPIAs in general and since would not buy one myself did not like the idea for them; did not want to be stuck in contract; worried about them selling the annuity to a third party; worried about the monthly income not being enough, not keeping pace with inflation, and then getting a call to help them out until next month; and did not want it tied up since I foresee them wanting or needing the occasional lumpy purchase. That already occurred with needed money for car repair and it was nice to be able to let them use their money for it.
Statistics: Posted by SnowBog — Sun Mar 24, 2024 11:43 pm — Replies 38 — Views 2073