Lifetime income decisions are made along the continuum of “guaranty” and “optionality”. Neither one is always right or always inappropriate. A lifetime “guaranty” payout under a fixed annuity can and sometimes should play a role, alone or in conjunction with, a well-diversified, risk appropriate and managed portfolio that allows optionality. Annuity, as a form of lifetime income IN-PLAN solution, will, however, not likely catch on until DOL issues safe harbors for selecting, offering and monitoring annuities IN-PLAN.
Click here for the full article.