In this episode, The Annuity Man discussed:
How lifetime income is priced
Don’t time annuity purchases
Laddering annuities
Key Takeaways:
Lifetime income annuities are primarily based on your life expectancy. Interest rates play a secondary role in the pricing.
Higher interest rates will positively impact annuity pricing. Don't try to time the market for annuity purchases; base decisions on contractual guarantees.
Consider laddering annuity purchases to take advantage of future pricing changes.
"Remember, lifetime income annuities are primarily based on your life expectancy or life expectancies if joint at the time you take the payment. Interest rates play a secondary pricing role." — Stan The Annuity Man.
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