In This Chapter
Starting with the basics of annuities
Determining whether annuities have a place in your financial plans
Choosing among fixed deferred annuities, variable annuities, and more
In the years since the first edition of this book came out, Baby Boomers have begun to retire. They've saved trillions of dollars in 401(k) and 403(b) plans, but few have a strategy for stretching that money over what could be 20, 25, or even 30 years of retirement.
Annuities may be the answer. Annuities can help Baby Boomers (especially those without traditional pensions) protect their savings and/or convert savings into guaranteed lifelong income. Annuities aren't just for the Baby Boom generation. They can be a viable investment option for anyone who wants to protect his income in later years. This chapter gives you an overview of what annuities are, what they offer (both good and bad), and the general types of annuities you can choose from.
Annuities are neither pure investments nor pure insurance. Instead, they have one foot in both worlds.