Dawg52
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Annuities make sense for some people. If a person attempting to fund retirement is not a financial planning wizard... an annuity for a top rated company is not a bad way to go. It is self purchased pension.
For example you might have a couple that is somewhat disciplined in sticking with a budget, but know little about stocks, bonds, etc... and do not know/will not learn... the use of an annuity could be their best approach to a secure retirement. They just need to purchase the right annuity with a Top Rated company (Triple A rate with 3 or more key rating agencies) that has a long, conservative, predictable track record. It is best if they groom the CEO and much of top management from inside the company after 25 to 30 years of proving themselves. There are a few insurance companies out there that have a strong balance sheet (i.e., net worth) and are conservative.
Annuities can be structure to leave money to beneficiaries in some form or fashion. Newer annuity products are coming out (and the features are changing rapidly) that allow the annuitant to restructure the annuity to get at some or all of the remaining principle. Of course this comes with a price tag.
Makes sense to me. Not sure I will ever buy one though. Heck, I'm doing fine right now living off of interest and dividends. When SS kicks in, my cash flow will be even better. But who knows how I will feel when I'm 65. An annuity would help put things on autopilot. But as you said, at a price.