Talk of The Villages Florida - View Single Post - Article in Barrons behind Paywall about 4% Rule Might not work
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Old 01-24-2022, 08:41 AM
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Quote:
Originally Posted by Stu from NYC View Post
Would be interested in how much money he makes from the annuity and reverse mortgage industry.

Taking out 4% from your assets each year starting as you enter retirement has been a recommendation for many years.
When I studied financial planning years ago, they would send me a financial planning trade magazine every month. The magazine always had several full page ads by insurance companies promising a 9-10 percent upfront commission for selling an annuity. I understood that they often recover most of that money from the 7-10 percent surrender fees from people who decide to cash in the annuity when they need the money after a few years. It takes a little longer to recover the commission from people who keep the annuity, but the annual fees eventually pay for the commission.