Originally Posted by wfobrien
I was thinking of the annuity as a way to hedge against a huge hit to my portfolio-since other than SS its all I got.
Try this exercise: Divide the cost of the annuity (SPIA, right?) by the amount it pays you each year, and see how many years it takes until you're getting their
money instead of just a return of your
I read one recently where a 68 year-old lady was recommended to buy a SPIA, and when you did this it turned out that she was just getting her own money back for the first 18 years. Only if she lived several years past her life expectancy would she finally be getting their money.
She'd be much better off by putting it into a bond fund like DODIX and taking the same monthly withdrawal.