Ask Terry Questions Must choose type of Annuity plan.

Must choose type of Annuity plan.

By Terry Savage on June 20, 2018 | Financial Planning / Retirement

I need help in choosing wisely which is the better Annuity payout plan.
I am 70 1/2 yrs old my wife is 63 1/2 yrs old has a 403b and will retire in a year and a half.
I recall hearing that the 100% Joint and Survivor Annuity was viewed as the better choice.
My options are:
Single Life Annuity: Lifetime benefit payments, No Beneficiary payments.
100% Joint and Survivor Annuity. Pays both same amount.
Or one of these options:
50%, 75% or 100% Joint & survivor Annuity with POP UP “If your beneficiary dies before you, your payments increase to the Single Life Annuity amount.

I appreciate your insight on this matter, thank You.

Terry Says

Well, first of all, who told you that you MUST choose an annuity with the 403(b) rollover?? Didn’t someone suggest that you could roll over a portion of the money into an IRA rollover that you could invest conservatively for growth over the next 25 years? Who wants to be “stuck” with a fixed check — even over both lives — when inflation at only 3 percent will cut the spending power of your money in half in 25 years!!

I understand wanting the certainty of some income. But that’s what Social Security is supposed to give you — and it is indexed for inflation. You need some better investment advice — from someone who is not trying to sell you an expensive and restrictive policy.
Let me know where you live (what state) and I’ll try to point you in the right direction to get some unbiased advice.

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