Yes, it is possible but you have to think about it differently than most everyone else. The annuity itself may or may not beat the market but how you use it can definitely give you an advantage. Too many people get stuck on evaluating a single assets rather than finding ways to build a portfolio of assets that work together.
It might help for some to have a little context. I’ve been hinting at this for over a year and have shared the idea with several people. Two of the past newsletters will give you some background and show you how long I’ve been working on this. First, you can click here to read “How to Get Out of An Annuity”. It talks about the myth of liquidity and how annual free withdrawals give you plenty of opportunity. Second is the “S&P 500 over 25 Years” that shows you a chart and gives you an idea of the real yield you should expect with risky assets.
Then it comes to this, my latest idea. I’ve been playing around with it for more than a year and have since found out that this approach has been academically verified to maximize assets in retirement. I have compared more than 50 time periods and all have similar results. So the numbers aren’t cherry picked and if you want to pick your favorite mutual fund or ETF I can pull the chart and make a quick spreadsheet to test it out.
This is just another thing you can do with an annuity that wouldn’t be possible with other assets. Liquidity free of interest rate risk with a reasonable yield is what gives the annuity an advantage over bonds and cash. So enjoy the video and let me know your thoughts. You can comment below or respond to my email. I’m going fishing today so forgive me if my response time is a little slow.
Have a nice weekend…