When an annuity can make sense


In general, I think annuities are great for annuity salesmen and a bad investment for everyone else. But this article makes the point that annuities are a risk management tool (to hedge the risk of living too long and running out of money) and not an investment.

I suppose it could make some sense for a risk averse person to top up their Social Security payments with a deferred income annuity to achieve a minimum monthly payment sufficient for living expenses.

But beyond that limited circumstance, I think annuities are a bad idea.


Here is the entire article.