MattInAustin
Dryer sheet aficionado
- Joined
- Feb 19, 2004
- Messages
- 26
Great points being raised both for and against annuitizing a portion of ones portfolio regardless of realistically possible payout rates.
Risks that annuities might help mitigate to consider:
Longevity risk,
Sequence of returns risk,
Portfolio complexity risk (annuities don't require much to manage),
Market timing risk (post purchase),
Risk of lawsuit and creditors (I believe annuity payouts are largely protected from lawsuits and creditors because they are insurance? Probably depends on state),
Probably some others I am missing.
I think annuity payments are not included in financial aid qualification calculations for school.
Risks that annuities might help mitigate to consider:
Longevity risk,
Sequence of returns risk,
Portfolio complexity risk (annuities don't require much to manage),
Market timing risk (post purchase),
Risk of lawsuit and creditors (I believe annuity payouts are largely protected from lawsuits and creditors because they are insurance? Probably depends on state),
Probably some others I am missing.
I think annuity payments are not included in financial aid qualification calculations for school.