Sure, but this article does not emphasize enough the foolishness of doing it at a time of such low interest rates.
http://www.theglobeandmail.com/globe-investor/personal-finance/annuities-an-option-for-any-retiree/article1360062/
The cost of annuities is based on current long term interest rates. I always considered 8% as being a good long term investment goal. Therefore I would never consider an annuity unless I could get at least that rate. I bought annuities for my mother and father from their RRSP so that they could take advantage of the (at that time) $1000 pension income deduction. The return was 10%! They both lived into their early nineties which is another factor. If you think you are healthy and will enjoy an above average lifespan you can get an extra bump from an annuity. If you are expected to live to 83 then every year after that you are getting a gift from others who didn't make it that far. Buying an annuity today when interest rates are rock bottom doesn't make sense to me. Neither does writing an article perhaps encouraging others to consider it. Nor does providing a link to it. Here's the come on.
"Welcome to the Globe and Mail Personal Finance Reader. I’m Rob Carrick, personal finance columnist at The Globe, and each week I compile a list of articles, blog postings, videos and websites that represent the best of what the online world has to offer on money-related subjects."
Friday, November 13, 2009
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