An annuity is an insurance product that can provide a secure income stream for the rest of your life

December 16, 2020 by Karen Fernandez

“People always live forever when there is an annuity to be paid them,” observed Jane Austen in Sense and Sensibility. 

An annuity isn’t literally an elixir for immortality, but Austen does have a point. For centuries, a broad range of investors has found that owning and receiving payments from an annuity has helped them —not to live longer, maybe, but to live better.

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Wink’s Note:

• The “big fees” described are features of VAs, not annuities in general. The entire industry cannot be swept with a broad brush. 
• Liquidity comes in the form of an annual penalty-free withdrawal provision and features such as waiver of surrender charges in the event of nursing home confinement, terminal illness, unemployment, and more.
• Comparing annuities to mutual funds and ETFs is nonsense! Annuities transfer the risk of living too long to the issuing insurance company. That cannot be done with ETFs and Mutual Funds. 
• The average annuity purchaser is 63. 

Originally Posted at Business Insider on December 8, 2020 by Karen Fernandez.