Investing - Theory, News & General • Would a 5 Year Annuity Be Good In My Situation?

Yea I want to get payments in a fixed amount on a monthly basis. As I learn more about investing I'll move the money where I see fit. Doesn't even have to be 5 years. It could be a year or 2. I only said 5 year annuity b/c it seems like that's the shortest time frame I can get with regards to an annuity.

Instead of an annuity, you could think about just parking the funds in a money market fund and making monthly withdrawals.

My Vanguard money market fund is currently earning 4.28%. That’s higher than the imputed rate on the 5 year annuity. You could put your $100k into that fund, make money withdrawals of $1,843, and your money would probably last about 5 years, depending on future short term interest rates.

Statistics: Posted by Stinky — Sat Jan 25, 2025 8:32 pm — Replies 3 — Views 161

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