Understanding Why Annuities Work Better Than Bonds in a Retirement Income Portfolio
The goal of this Insight is for retirees and their financial advisors to understand why bonds are the least efficient way to fund a spending goal in retirement. Annuities can replace bonds to support a retirement spending goal, and the three articles help to justify why this approach works and why it is okay to use a more aggressive asset allocation with remaining investments.
This series of articles, published over a span of five years, builds a case for how annuities can contribute to better retirement outcomes by replacing bonds in the retirement strategy. Retirement investors and financial professionals will observe a different perspective about annuities and how their inclusion in a retirement plan can more safely support greater retirement spending relative to investments-only strategies that rely on taking distributions from a portfolio of traditional asset classes like stocks and bonds.