Focus
Full time employment: Posting here.
- Joined
- Oct 10, 2009
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- 640
This post in the Nerd's Eye View blog (new to me) brings up some interesting points if you're pondering an annuity. In a nutshell:
The Reichling/Smetters research represents a significant breakthrough, in that it shows why even a rational (but somewhat risk-averse) investor would choose not to annuitize, even if there is no bequest motive and the sole goal is to fund retirement, due to a combination of the illiquidity of the contract and the fact that its implicit value declines in the face of health care shocks when the need for money actually rises.