If . . . for income purposes, then an income annuity (whether fixed or variable) should be purchased not a day before you actually need the monthly income to help you live the life you desire.
If . . . for longevity insurance (so you assure yourself of income for life) purposes, I agree with a variety of researchers and Kerry Pechter in Annuities for Dummies (2008) who writes: "...when you reach age 60 replace the bonds in your portfolio...at age 75, ...replace the stocks in your portfolio..." (that is, just the bond or stock portion required to meet your goals and still, most likely, no more than 25% of your total portfolio).
Please note: (1) the purpose for using an annuity in the statements above (because neither may apply to you) and (2) that this is concerning "income" annuities (where you actually plan to take a monthly amount because 95% of annuities purchased are never "annuitized")
Since your money is pooled with others:
Rule #4: the older you get and the shorter your life expectancy, the more money you will be able to get on a monthly basis due to "survivorship credits" (if you live longer then average, those who died earlier have helped you to earn a better monthly payment than you could do on your own in many circumstances).
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.