Annuity Ladder

Let’s face it...life offers no guarantees. You could kick the bucket tomorrow. (Yep. We’re Debbie Downers today.) BUT you can create peace of mind by laddering your annuities. This means you’re going to make multiple investments (in bonds, for example) at different times to make sure you have sure-fire money coming in.

And, as interest rates change (which they might), you’ve got your cherished eggs in more than one bucket. To do this, you won’t buy annuities in one lump sum. Instead, you’ll buy a little here and a little there. Each annuity will mature at a different time. The good thing about this is that you’ll have cash coming in at different times, which secures you if times get tough. If interest rates rise, you’ll have funds immediately available to reinvest.

The thing to remember is that, in doing this, you’re tying your money up. Just make sure you know what type of annuities you’re purchasing. Annuities are as different as holidays. Don't bring holly to a Fourth of July picnic...