A. The soaring stock market poses a dilemma for soon-to-be retired or retirees - participate or not?
The conventional answer is to lower portfolio's exposure to uncertainty as one nears retirement by buying more bonds, locking in stock-market gains. Another popular idea is to put a portiion of retirement funds into a relatively stable place that will guarantee income for the rest of the life, in this case, fixed-income annuity.
Time magazine recently ran an article titled "stock-market highs pose vexing questions for the soon-to-be retired" clearly explains the situation many soon to be retired or retirees face and a practical solution, read the article here.
While there are many options out there, you should only buy something you could understand easily. If you are interested in fixed income annuities, please contact us.