Sunday, February 26, 2012
How to "buy your own pension" (IFA's)
Here’s an article, from 2009, Kiplinger, that I thought I would pass along, “Buy a Pension with an Immediate Annuity”, by Steven Goldberg. The discussion concerns IFA’s, Immediate Fixed Annuities, with link here.
He says that sales people don’t earn much selling them. And once you pay the single premium, it’s out of your hands; you can’t get the principal back for an emergency, ever, beyond your payments. But if you’re going to live a long time, it could become a good deal.
I have a variable annuity contract with Met Life (not fixed), and in general many of the same concepts would apply.
Normally there are beneficiaries, and sometimes a death benefit may remain, depending on the contract.