Wow, thanks for sharing! On average, people are of average intelligence. You seem to be confusing a lack of time/resources with a lack of brains. Social Security is complex, and getting advice from a friend or the SSA website is exactly what 'average' people—who are also busy working, raising families, and living—are supposed to do. The best advice is to clarify the path, not insult the travelers.
To be fair, we should also recognize that the time value of money should be considered when making these comparisons. The payroll taxes were paid over an individual's entire working life, sometimes decades before benefits began. If one were to calculate the future value of those early contributions, including a reasonable rate of return, the actual "break-even" point—where the benefits received equal the contributions plus interest—would be significantly longer than the 6-9 years mentioned.
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
Comments
Wow, thanks for sharing! On average, people are of average intelligence. You seem to be confusing a lack of time/resources with a lack of brains. Social Security is complex, and getting advice from a friend or the SSA website is exactly what 'average' people—who are also busy working, raising families, and living—are supposed to do. The best advice is to clarify the path, not insult the travelers.
Post: Social Security subject beaten to death, but one more time please
Link to comment from October 24, 2025
To be fair, we should also recognize that the time value of money should be considered when making these comparisons. The payroll taxes were paid over an individual's entire working life, sometimes decades before benefits began. If one were to calculate the future value of those early contributions, including a reasonable rate of return, the actual "break-even" point—where the benefits received equal the contributions plus interest—would be significantly longer than the 6-9 years mentioned.
Post: Nope, you didn’t pay for YOUR Social Security benefits
Link to comment from October 5, 2025
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