Retirement - Annuity vs Drawdown

You're about to retire. An annuity gives you a guaranteed income for life, but once you've bought it, you can't undo it. Drawdown keeps your money invested and under your control, but it could pay more or less, and it could run out. So how do you choose? I think the choice comes down to three trade-offs, and only one of them is about how much you're paid. In this video we look at what an annuity quote really tells you, how each route treats the money you leave behind, and the three questions to ask before you decide.

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Timestamps
00:00 Introduction
00:24 How Annuities Work
01:12 Three Key Tradeoffs
01:32 Rates and Bond Yields
02:33 Pooling and Bond Ladders
05:45 Adding Shares and Risk
07:07 Tradeoff Two Legacy
07:48 Tradeoff Three Control
08:30 When to Buy Annuities
09:28 How Much to Annuitize
10:20 Questions and Shopping Around
11:00 Final Thoughts and Wrap Up

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DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.

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