Chapter 4: Is an Annuity Right for Me?
The MassMutual Study MassMutual Financial Group released a study provomg that incorporating a fixed income annuity into a retirement income account not only provided more income security, but also produced greater long-term wealth for the investor than equities and bonds alone. “Incorporating a fixed income annuity in a retirement income account yielded greater longterm wealth for an investor—along with more income security—than a portfolio of equity and bond investments alone, even in an "up" market.”
They also discovered that fixed income annuities create greater cash flow for retirees while significantly lessening their risk of outliving their savings. "By including fixed income annuities in a retirement income account, retirees may achieve greater growth potential while also addressing their desire to avoid running out of money in retirement and to leave a legacy for their spouses or children."
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