Annuities
We have 1 million in our 401k
8000/month in pension and social security’s
We are both 70 years old
I still work part time and make about 40 thousand per year, 28% going into my 401k.
We have no other debt besides our mortgage which is 30 thousand.
We seem to be short of cash by the end of the month.
We are thinking of getting a fixed rate annuity for 200 thousand that would give us aro1800 per month
Would this wise?
Terry Says
Well, the problem with an immediate annuity is that it locks you into a fixed monthly check. At that check will be impacted by inflation. Even at only 3% inflation, the spending power of that fixed check will be cut in HALF by inflation. And maybe you’ll live to be 95 and need the money!
I think this is a perfect time for a review of your entire financial situation by a Certfied Financial Planner who is a fee-only FIDUCIARY advisor. The only way I can be sure you will be in good hands is through the Wealthramp process. Please watch thevideo at this link:
https://www.terrysavage.com/pam-krueger-wealthramp/
Pam will match you with a couple of qualifying advisors, and there is no obligation to do anything. But if you find your perfect match, you will be in good hands. I’m guessing there are better options than creating this “allowance” for yourself.
