Can SPIAs outperform a portfolio-based strategy?

07/24/2013 | Nerd's Eye View blog

Financial columnist Michael Kitces examines whether the partial annuitization of a portfolio can outmatch a portfolio strategy. He concludes that while using a single premium immediate annuity strategy can enhance retirement outcomes, the vehicle is mostly effective for very long-lived retirees. For most retirees, the equity-shielding effects of using SPIAs can be achieved by employing a generic 50/50 portfolio and withdrawing from bonds, according to Kitces.

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