My last post was about annuities and why they are unpopular. Most recently I came across an article on Morningstar that provides a different perspective – a historical one, and prompted a different set of questions!
Wondering whether addressing these questions would help move the needle in favor of annuities:
1) What if people understood what “life expectancy” truly means?
2) What if the tax implications of receiving annuity payments were more beneficial than taking a lump-sum?
3) What if people understood how, if set up according to the age 70 1/2 minimum distribution rules, annuities have the potential to partially meet those requirements?
Would people think of annuities differently if they knew the answers to the questions?