Investing for lifetime income and long-term growth
You have a third option — namely, devote a portion of your savings to an immediate annuity that can provide income you can’t outlive, and invest the rest in a diversified portfolio of stock and bond funds, plus a cash reserve. Let’s say you have $1 million in retirement savings. If you put, say, 25% of that amount, or $250,000 into an immediate annuity that would generate guaranteed lifetime payments of about $1,350 a month for a 65-year old man, $1,290 for a 65-year-old woman or $1,155 for a 65-year-old couple (man and woman) as long as either one of the couple is alive.
How to invest for lifetime income and long-term growth – Oct. 11, 2017