Listen: Why All Retirees Should Consider an Income Annuity
"Got An email today from a listener. Yes about one point. Two million dollars in assets. He's fifty four about four hundred thousand in the stock market half a million dollars in certificates of deposits and is considering taking some of that money in CD's and putting it in a ladder portfolio of individual bonds this would be a portfolio where you have bonds that mature in one year two years three four or an honored individual bonds finally got an email from a member who asked about annuities given that they have no children no no debt. They don't want to leave an inheritance to anyone. Their primary goal is not run out of money before they die he asked. Should we put all of our assets assets into annuities in order to maximize our ability to spend while reducing risk during retirement. Clearly how we invest and what we do with our money when we're retired is different during the accumulation phase when we were just seeking to save enough and earn a decent return so we have have enough to retire. Police do we do with his nest egg once retired. I came face to face with this during being the great financial crisis in two thousand eight. We were managing portfolios for financial planners as one of our lines of business and in the fall. Aw of two thousand eight. I went out and met with the clients of one of these financial planners this was in Baltimore. We managed a stock portfolio. Anna Bond Portfolio for this client and the advisor would allocate mostly retirees into these portfolios typically. It was fifty percent stocks Fox on average and so these retirees came filing in to this meeting was held in the evening and they looked shell shocked act their portfolios. Were Down Twenty five the thirty percent they were fearful and as I spoke to them I tried to shit calm them. Let them know things. We're going to work out but at the same time I recognize that just investment tools isn't going to work how is retiree supposed to stomach fifty to sixty percent drop in the stock market. I spent five five months. Researching retirement income strategies different ways to go about it in at the end of that time I."