Rule #2: The use of variable annuities to guarantee certain levels of income increases probabilities of the plan's success, but erodes net worth faster (especially in poor markets).
As logic suggests, and as I wrote previously, guaranteed income has a price. But not just the fees, but rather the potential growth in your portfolio that may be sacrificed.
So, the question needs to be asked: "What is the goal?" Retirement income guarantees or more legacy wealth accumulation for inheritances to survivors later?