When investors fear a market down-turn, some are tempted to seek shelter for their retirement funds in annuity contracts. An annuity is an insurance product that pays you a fixed monthly income for life. Annuities come in huge variety, due to different features, interest rate determinants, payout schedules and contract specifications. Even considering only the best of this group, investors usually are better off with a properly managed investment portfolio than through an annuity.
“John Doe is a millionaire.” This phrase implies much more than stating his net worth. Career success and financial independence are closely associated with being labeled as a millionaire. But in our ever-changing world, what does it mean to be a millionaire? Turns out, in 2018 it means a lot less than it used to.