A. The answer hinges on only one factor - do you have a gap between your regular incomes (pension, social security payment, other guaranteed sources of incomes) and regular expenses (utility, medical insurance, food, property tax, etc.)?
If the answer is yes, your guaranteed regular income is not enough to support your regular expenses, then invest a portion of your retirement savings to buy an immediate annuity.
An Immediate Annuity is an outlier in the complicated financial products world - it is very simple - you hand over a lump sum to an insurance company and you are guaranteed to a monthly payment for the rest of your life.
This makes the comparison of immediate annuity very simple - just pick the insurance provider that gives you the highest monthly income.
Unfortunately, things don't always work that way. In our next blog post, we will discuss a few common variations of immediate annuity.