Truth 21. Split annuities

"In investing money, the amount of interest you want should depend on whether you want to eat well or sleep well."

—Kenfield Morley

Split annuities are the surf and turf of annuities. Just as when you go to a restaurant and can't quite decide which is best, the steak or the fish, so you get a dinner that consists of both, so it is with split annuities—except in this case, there is nothing fishy about your choice. You don't need to decide whether to pick the immediate annuity and its guaranteed payment of income or a deferred annuity with its promise of greater, tax-deferred returns later down the road. With split annuities, you can have both.

The split in split annuities refers to taking the money that you consider ...

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