4 ms·
If you annuitize your 401k balance at retirement you're effectively participating in a Tontine-like structure with fees paid to the insurance and reinsurance co
by nugget 9y ago
If you annuitize your 401k balance at retirement you're effectively participating in a Tontine-like structure with fees paid to the insurance and reinsurance companies in return for administration and risk mitigation.
- ThrustVectoring 9y agoIndexed annuities are crap, single premium inflation-indexed annuities are pretty much the ideal product but not enough people are buying it for it to be offered, and buying a flat single-premium immediate annuity has some execution problems with dealing with inflation properly. There's significant execution hurdles with this plan. And like, yeah, this solves the problem for me, but I'm already a high-income earner who is financially literate enough to reason through these things. Having it be opt-out or mandatory solves this for the people who aren't as lucky.