Lump Sum Versus Annuity

[pacificlou]

I took my lump sum and my 401K, purchased an annuity with one and rolled over my lump sum to an IRA w/Vanguard back in 2006. Annuity guarantees my wife and I lifetime payout regardless if I pass away first, when my spouse dies any monies left goes to my beneficiaries which would be our only child. I need about 4 more years to break even on annuity, I can roll it over to an IRA but then again this guarantees income regardless what happens in market.
The Vanguard account has been paying almost 6% the last 5 years and more over 10 years Vanguard Wellesley Income Admiral (VWIAX). I currently only withdraw about 3-4% annually and it should be plenty till I pass on, I retired at 55 and currently 69 so I don't expect to outlive my savings there nor my wife. Prior to retirement I read as much as I could about money matters on retirement, make sure your investments are with holdings that are in the billions and have a minimum of 7 years profits over a 10 year period, (per Warren Buffet). Good luck!

 

[zinger1457]

I took my lump sum and my 401K, purchased an annuity with one and rolled over my lump sum to an IRA w/Vanguard back in 2006. Annuity guarantees my wife and I lifetime payout regardless if I pass away first, when my spouse dies any monies left goes to my beneficiaries which would be our only child. I need about 4 more years to break even on annuity, I can roll it over to an IRA but then again this guarantees income regardless what happens in market.

The cash payout of the annuity to any beneficiaries would not happen after you reach the break even point in 4 years correct? In any case you're probably getting a much better payout from your annuity purchased in 2006 then one would get if purchased today for the same amount.