In Part A, we discussed why fixed lifetime income annuity, in Part B, we discussed what is a fixed lifetime income annuity, in Part C, we discussed the four major options of fixed lifetime income annuity payments.
Now, how does Fixed Lifetime Income Annuity fit into your retirement portfolio?
Diversification
In retirement time, spreading your sources of retirement income across different types of investment products can help you balance your risks and maintain some liquidity and opportunity for potential growth over the long term.
A fixed lifetime income annuity can help diversify your retirement income portfolio so a portion of your income is shielded from market volatility.
However, your assets allocated to the purchase of fixed income annuities should represent not more than 50% of your liquid net assets, because even though these products provide guaranteed income for life, they also require that you give up liquidity and access to that part of your portfolio.
Now, how does Fixed Lifetime Income Annuity fit into your retirement portfolio?
Diversification
In retirement time, spreading your sources of retirement income across different types of investment products can help you balance your risks and maintain some liquidity and opportunity for potential growth over the long term.
A fixed lifetime income annuity can help diversify your retirement income portfolio so a portion of your income is shielded from market volatility.
However, your assets allocated to the purchase of fixed income annuities should represent not more than 50% of your liquid net assets, because even though these products provide guaranteed income for life, they also require that you give up liquidity and access to that part of your portfolio.
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