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Originally Posted by Raen Dear
I am looking at increasing income in the future. Right now my income is fine but my resources are a pension plus social security and, while they are supposed to go up, I'm not convinced they will be adequate. So I am looking to lock in some future income. Is this the way to do it?
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Don't think anyone knows the answer to that one. At this point I would say dividend paying stocks is probably the only option for my situation. Yours could be different.
I have seen a few financial planners recommend the purchase of an immediate annuities when your resources may not be adequate to meet your income needs. The idea is you purchase the annuity x years into retirement because inflation has reduced the value of your pension and your assets would have to be invested in high risk investments to earn enough income. This could be something to consider down the road. I do not think you would want to buy an annuity until interest rates increased. Annuities can be expensive so be sure to shop (try Vanguard and Fidelity to start) around and maybe hire a fee only financial planner.