Staggering annuity purchases over time can boost your guaranteed retirement income and lower risks. Getty Images Handing over a large lump sum to an insurance company in exchange for a stream of guaranteed payments is a hard pill to swallow for many investors. Add in uncertainty about interest rates, which affect annuity payouts , and the decision to buy an immediate annuity becomes more challenging.
A laddering strategy could help ease that decision and potentially boost your guaranteed income. To build a ladder, make smaller immediate-annuity purchases periodically, perhaps every three to five years. You capture higher payouts if interest […]
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