Stan Haithcock...Stan the Annuity Man says annuities can be very powerful retirement income tools provided they are used based on contractual guarantees. Retirees and advisors get into trouble when they depend on potential growth outside of the contract.
This is the original design for receiving lifetime income payments from an annuity. This strategy is primarily used with single premium immediate annuities and longevity annuities, but deferred annuities can be annuitized as well.
Annuities are not investments. Annuities are insurance products. They are contractually guaranteed transfer of risk strategies that solve problems like lifetime income, legacy, or principal protection. The questions you need to ask yourself are ...when do I need the money?....and if I died tomorrow, are contractual guarantees in place so that my spouse can continue their current lifestyle uninterrupted without having to manage the assets?