Blueprint SPIA quotes for a California female, born in 1947, buying an $800,000 annuity, results in ~$5700 per month lifetime income with highest rated insurers. At age 81, it's ~$6600 per month for life.I don’t think this 76 year old has the temperament and certainly not the understanding for stocks. Both she and her late husband were always risk adverse. She has almost zero financial knowledge, although she is frugal. It’s too late to educate about the long term benefits of a balanced diversified portfolio. And when stocks go down, especially if they stay down longer than she stays healthy, it will be the fault of her advisor.
Is this not the best answer to her situation, i.e. buy the annuity, either all now or in two tranches, and have her simply bank excess income for emergencies, in addition to the IRA? Some of the suggestions are great, but, who is going to manage it? I wouldn't, given the propensity to lay blame for normal market dynamics. And, who can she trust to not steal her funds? This is an important consideration.
Statistics: Posted by Zdex — Wed Dec 06, 2023 9:59 pm — Replies 12 — Views 548
