A friend recently told me he’s planning to retire but is worried about his financial ability to do so. When he described his situation, I told him it seemed to me he didn’t have anything to worry about. But, still he’s worried. As luck would have it, I heard a finance professor lecture on retirement income planning the following day. He suggested a strategy that might just help put my friend’s mind at ease. I then also read an article in the Harvard Business Review by Nobel laureate economist Robert Merton touting the same idea. It’s not a cure-all, a panacea or magical solution. As a financial whiz-kid once reminded me, “No financial product has a ‘secret sauce’.”
The concept: use annuities as a key element in your retirement income strategy. Read more