Retirement Income? Annuities Come Up Short
Author: Brett Arends</br></br>Turmoil in the stock market. Paltry interest rates at the bank. What are the newly retired to do?</br></br>Many are taking a look at buying a fixed annuity instead.</br></br>These products let you swap a lump sum for a fixed income for life. They're sold by insurance companies, and have long been considered a safe way to ensure a steady income in retirement.</br></br>They have a fair amount to commend them -- especially in theory. They eliminate the risk that you'll outlive your savings. And they let you squeeze out extra income while you're alive, at the cost of leaving nothing for your heirs.