Retirement mistake no. 6: Ignoring immediate annuities

Daniel Solin

Retirement mistake #6 is ignoring immediate annuities.

For most retirees, variable annuities and equity-indexed annuities are poor investments. Because of the poor reputation of these products, retirees have shunned immediate annuities. This can be a big mistake.

Immediate annuities are simple to understand. You give the insurance company a lump sum. They give you monthly, quarterly, or yearly checks for the rest of your life, or longer, if you choose.