Annuities: Boring Is Better

Suppose that when it comes to retirement planning, you do everything right. You estimate how many years you will have to draw down your assets, rather than accumulating wealth through full-time work; you figure out how much money you will need per year; and you build your portfolio toward the required total. The unfortunate truth is that even then, you’ll still face two major financial risks as you grow older. One is inflation: Your money will buy less in the future than it does today, and it may buy less than you expect, particularly if medical costs remain out of control. That’s why it’s so important to stay invested in equities...

SmartMoney: Annuities: Boring Is Better