There are various ways to grow financially.
And not all of them are actually financial!
Sometimes, there's emotional grow as well, a matter of changing one's mind.
I'm getting there when it comes to annuities.
I know that we old fogies are supposed to be set in our ways but life has a habit of changing things. Witness my previous, long-held aversion to bonds. Nothing like a recession to rearrange one's priorities! I'm now upping my bond quotient, which, at my age (Ahem! Umm--61) is probably long overdue, though it has taken me some time to come to that conclusion.
Now I'm rethinking another aversion--to annuities.
This article, by Money Magazine's Walter Updegrave, not only mentions my major concern (that annuities are too expensive for the benefits they grant, particularly if I exit this mortal coil sooner than expected) but has some solutions that provide safety while not tying up all one's funds.
I expect to retire with around $400,000 in my 401(k), which, with my Social Security, should provide me with about $50,000 a year. Since I calculate that I really only need about $36,000 after taxes to live comfortably in retirement, I could afford to put at least $100,000 into a guaranteed annuity. Unfortunately, there is no pension in Grace's future.
I haven't made any final decisions, and don't intend to for a few more years. I figure the payouts can only get better, given how low they currently are.
But unlike past decisions to never consider annuities, these days I'm listening. And reading. And, yes, considering them.