Great points in the article and in many of the comments! Annuities aren't a one-size-fits-all solution and, as you mentioned, they may underperform during a strong bull market. However, a key benefit of annuities that's often overlooked is their potential for downside protection. A portion of a retirement portfolio allocated to annuities could provide a valuable safety net, especially in a prolonged period of stagnant or contracting equity markets. Japan offers a great historical example of this, where their stock market experienced a significant downturn and then stagnated for many years, from around 1990 until the early 2010s. In such a scenario, a fixed annuity's guaranteed income stream could have been a lifesaver for retirees, offering stability when their equity investments were faltering. Ultimately, it comes down to diversification. Combining a growth-oriented equity portfolio with the stability of an annuity can help mitigate risk and create a more resilient retirement plan, no matter what the market does. Perhaps it comes down to the retiree's risk appetite.
Thank you for the terrific article. When I was still working, it seemed as if those who were "so busy" were among those who were least effective. Now in retirement, having nearly complete control of my time has been delightful, allowing me to focus on those activities that give me and those I love joy.
Once again, you've written a terrific article. Thank you. Hearing they/them being blamed for all sorts of maladies is one of my pet peeves. Life ends up being so much easier if you simply take responsibility for your own decisions and life.
Adam, Thanks for another great article! This one really sparked my interest; using Chesterton's Fence followed by a decision framework provided an effective framework. Looking forward to your next one!Bob
Ed, you wrote a terrific article. Congratulations on your retirement. Being content with simple, yet fulfilling, days has been one of the most rewarding parts of my retirement, which started nearly two years ago. May you have many more perfect days ahead. Bob
Jonathan - great question; Richard - another great article. Many bemoan conservatism, but in Richard's case, it's provided a wide margin of safety. Regarding not buying those employer shares, you bought them, with your time - the most valuable resource of all! Keep up the great work guys.
Comments
Great points in the article and in many of the comments! Annuities aren't a one-size-fits-all solution and, as you mentioned, they may underperform during a strong bull market. However, a key benefit of annuities that's often overlooked is their potential for downside protection. A portion of a retirement portfolio allocated to annuities could provide a valuable safety net, especially in a prolonged period of stagnant or contracting equity markets. Japan offers a great historical example of this, where their stock market experienced a significant downturn and then stagnated for many years, from around 1990 until the early 2010s. In such a scenario, a fixed annuity's guaranteed income stream could have been a lifesaver for retirees, offering stability when their equity investments were faltering. Ultimately, it comes down to diversification. Combining a growth-oriented equity portfolio with the stability of an annuity can help mitigate risk and create a more resilient retirement plan, no matter what the market does. Perhaps it comes down to the retiree's risk appetite.
Post: Outliving Your Money? Let’s Do the Math on Annuities
Link to comment from August 14, 2025
Truly sad, but after all these years you surely can't be surprised by these people, can you?
Post: Get your head out of …. Creating problems that can be avoided.
Link to comment from August 5, 2025
Thank you for the terrific article. When I was still working, it seemed as if those who were "so busy" were among those who were least effective. Now in retirement, having nearly complete control of my time has been delightful, allowing me to focus on those activities that give me and those I love joy.
Post: Choosing Yes by Saying No
Link to comment from August 5, 2025
Terrific article. All I could do while reading it was smile.
Post: Getting Roasted
Link to comment from November 27, 2024
Laura, you wrote a terrific article. Thank you for sharing your experience and including how you put your plan in place.
Post: Laying Down a Floor
Link to comment from September 14, 2024
Once again, you've written a terrific article. Thank you. Hearing they/them being blamed for all sorts of maladies is one of my pet peeves. Life ends up being so much easier if you simply take responsibility for your own decisions and life.
Post: Who are them and they?
Link to comment from July 17, 2024
Perhaps we will have self-driving cars within the next 20-30 years that could solve this issue for many seniors.
Post: Life After Cars
Link to comment from June 21, 2024
Adam, Thanks for another great article! This one really sparked my interest; using Chesterton's Fence followed by a decision framework provided an effective framework. Looking forward to your next one! Bob
Post: On the Fence
Link to comment from June 2, 2024
Ed, you wrote a terrific article. Congratulations on your retirement. Being content with simple, yet fulfilling, days has been one of the most rewarding parts of my retirement, which started nearly two years ago. May you have many more perfect days ahead. Bob
Post: My Perfect Daze
Link to comment from April 29, 2024
Jonathan - great question; Richard - another great article. Many bemoan conservatism, but in Richard's case, it's provided a wide margin of safety. Regarding not buying those employer shares, you bought them, with your time - the most valuable resource of all! Keep up the great work guys.
Post: He Asked, I Answered
Link to comment from March 9, 2024