I want to buy an annuity. As I’ve written before, they make sense to me, in theory. In practice, I’m having a hard time pulling the trigger….
We received a modest inheritance. It doesn’t change our financial picture substantially, but it does mean we have some free cash to put to work — money we weren’t necessarily banking on. So this is a good opportunity to experiment with a new asset class. Diversify a bit. And one of the most compelling asset classes for retirees is an annuity – guaranteed monthly income for life….
We’re not interested in an immediate annuity right now, because we don’t need the income yet. We have several years of cash on hand, and years beyond that in conservative investments. We have a bit of business income. We are still at an age where our lifestyle remains flexible, where returning to work would be an option, where we can manage our own investments. In short, there is no need to put our retirement income on “autopilot” just yet.