BUZ LIVINGSTON: Annuities, burgers and Eden State Park
One glorious day last spring, Byron Chism treated us to grilled hamburgers at Eden State Park. The dynamic bluegrass duo Larkin Poe also made the guest list and sang angelically warming up for their evening show at the Seaside Rep. A couple of dolphins even played tricks in Tucker Bayou. You wouldn’t eat a burger every day (although I have) but Byron’s burgers made a perfect accompaniment on an impeccable day.
It took me a long time to figure out for some situations an annuity is spot-on, too.
Every case is different. Deferred annuities deservedly get a load of bad press and this correspondent included has spoken ill of deferred annuities. For income investors, fixed immediate annuities, on the other hand, should not be ignored. With a fixed immediate annuity you (and/or your spouse) turn over a lump sum to an insurance company in exchange for an income stream as long as you live.
Football has Bear Bryant and the retirement planning field counters with Harold Evensky. In addition to his Coral Gables wealth management firm, Evensky teaches personal financial planning at Texas Tech University and boldly calls immediate annuities “the most important vehicle over the next decade.” He believes the products are more efficient now with lower costs. When interest rates rise, he anticipates adding annuities to client portfolios. Previously, mentioning annuities meant scrubbing his mouth with soap.