Deferred Income annuity
Terry, what do you think of a deferred income annuity or QLAC; suggested as a possibility by our Fidelity rep; my wife and I are 77 and have no debt and current income is not an issue. Thank you
Terry Says
Well, that depends on your income and other assets. Remember, you already have a QLAC — and it is inflation-adjusted. That is your Social Security checks!
Are you worried about running out of money? Are you willing to take a reduced monthly check to cover two lives? Are you aware that the fixed check looks good now, but will be impacted by future inflation? Will you ever need this cash for an emergency — and find it impossible to get because it is tied up in the QLAC?
Remember, the insurance company makes money on this deal. That’s why they have the big buildings!
