Quote:
Originally Posted by KayakerNC
Pie in the sky?
If anyone is considering one of these things, the guarantee is the ONLY thing they should count on. With all the contractual Caps and Participation Rates the insurance industry has in place, that is probably the max you can get.
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If we evaluate our investments by eliminating all risks, we are left with a very low-performing set of alternatives. I am not a big fan of annuities, but I have evaluated them in great detail and there are many examples over the years where the market performance was such that the amount that determines the annual withdrawal amount exceeds the guaranteed minimum.
Yes, you can choose to ignore these scenarios in favor of the worst case, but if you really want to take a no-risk approach to investment analysis, you need to do it for the alternative investment options as well. I guess that leaves one with CDs - which today lose money to inflation every year.