They are spelled "annuities".

We have an annuity on my husband's military retirement pay for me and our kids but that is the only kind I think are worth it.

Waste of money.

My current plan is to, at the point of retirement, purchase an immediate annuity from Vanguard to fill the gap between my social security payment and my very bare bones budget needs (without factoring in inflation). Every five years or thereafter so I'll consider purchasing an additional small annuity to cover any gaps due to inflation or increased cost. This action allows me to feel comfortable taking more risks with my investment portfolio so it makes sense for me--I'll know that no market downturn will completely erode my livelihood. I also like the idea of having additional income that does not get figured into asset calculation so if we were in the situation where one spouse had really expensive nursing home care and ended up needing medicaid.

But immediate annuities are not very complex and have low fees. I wouldn't do any other except maybe, maybe a very cheap deferred annuity for old age just in case I live to be 100+ like a number of my relatives.

Very helpful links. Thank you, PPs!

The only annuities that I would consider are single payment immediate annuities (google SPIA). You give them X amount of money and they pay you a certain amount of money for life. Do some research on these, you can get quotes right online to estimate how much money you would get per money based on your investment and such.

Ask over at Bogleheads. Here’s an example discussion:

https://www.bogleheads.org/forum/viewtopic.php?t=256307

Anonymous wrote:Agree - do a trust instead. There is no such thing as a "good" annuity.

+ 1

Agree - do a trust instead. There is no such thing as a "good" annuity.

Anonymous wrote:Read up on them, OP. They're a rip off -- all of them.

No. Otherwise the companies selling them would not be in so much trouble related to underpricing.

Anonymous wrote:Can someone post some links to ones with lower fees that you would consider purchasing? This would be to use an inheritance so it does not count as an asset for a disabled adult and we would work with a financial planner to figure it all out and make sure we are doing everything right. I am just looking for some low fee annuities that are out there right now to get an idea of what they are and how much you get out monthly vs. what you put into it.

Are you looking for an income stream or a savings vehicle?

Read up on them, OP. They're a rip off -- all of them.

Anonymous wrote:Here is a list of low fee annuities that I would consider purchasing:





The end.

Sounds like what you really need is a special needs trust.

Lol.

Here is a list of low fee annuities that I would consider purchasing:





The end.

Sounds like what you really need is a special needs trust.

Can someone post some links to ones with lower fees that you would consider purchasing? This would be to use an inheritance so it does not count as an asset for a disabled adult and we would work with a financial planner to figure it all out and make sure we are doing everything right. I am just looking for some low fee annuities that are out there right now to get an idea of what they are and how much you get out monthly vs. what you put into it.