EFFICIENCY
This week’s article tells us that “Annuities are one of the most efficient ways to generate guaranteed income. This is demonstrated through a series of three case studies which looked at combination strategies using both annuities and investments compared to traditional investments-only portfolios. The simulations found: Adding an income annuity to a retirement portfolio allows a retiree to get the same or higher income with lower risk of outliving savings than an investments-only approach; Income annuities allow a retiree to spend at a level that investments alone would be unable to match without significant risk of running out of money