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[quote=Anonymous][quote=Anonymous]What is exactly annuity and do u reccomend it[/quote]
A key thing that wasn't mentioned is that with an annuity you share your mortality risk.

Let's say you and someone else puts in $1M each at the age of 65. You live until you're 85 but the other guy dies at 70. Of the $2M put in, ignoring any investment gains and costs here, you might get paid $1.6M and the other guy only $0.4M. So annuities are probably not a good bet if you expect to die early, but they can mitigate the risk of not dying early. This is an insurance effect you simply do not get if you invest the money yourself in index funds (or in anything, really).

A good source of information is [url=https://www.mtgprofessor.com/A%20-%20Annuities/Annuities-Much-Misunderstood-And-Vastly-Under-Utilized.html]Jack Guttentag[/url]. I learned a lot from him (and saved tens of thousands on my mortgages) when I was shopping for homes; I plan to do the same when it's time to look into these.  I will admit though that I do not follow all of his math yet (like the [url=https://www.mtgprofessor.com/A%20-%20Retirement/Annuities-And-Reverse-Mortgages-Are-Perfect-Complements-So-Why-Have-They-Been-Forcibly-Separated.html]charts in this article[/url].
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