Annuities are Sorely Misunderstood
June 13, 2022 by Kerry Pechter
Most people, and I mean the average person-on-the-street, most of Congress, as well as many investment advisers and most mass-media journalists, don’t know much about today’s annuities.
Wink’s Note: Another GREAT article by Kerry Pechter. I couldn’t agree with him more.
However, one section has me scratching my head:
“If contract owners want some protection against outliving their savings—the purpose of a real annuity—they have to pay an extra fee for a complicated “living benefit” rider that offers a weak version of a true annuity.”
This isn’t true? Every deferred annuity allows the purchaser to annuitize their contract for FREE, and create a stream of guaranteed lifetime income? So, even deferred annuities are “true” annuities? – SJM