In the past, it was a fish story. I remember when got started in the retirement business 12 years ago there was a broker in my little town that was basing retirement plans on 15% returns for income withdrawals!
I also recently heard a major financial figure head tell his audience that if you aren't getting 15% average annual returns on your mutual funds you should change brokers! Seriously? I have never met a broker that can average that amount for any given time and I have never seen a mutual fund that can either. This is especially true over a length of time, such as your retirement of 30 years, give or take a few. If he had said real estate at 15% average annual returns I would have totally agreed with him. Talk about a fish story!
Guaranteed income from annuities is not a fish story. In fact, the "lure" to the idea is very strong as insurance companies are offering a very strong product. Guaranteed income works as a percentage of your total assets at the time of activation without loss to principal. You do not lose access to your principal!
You can also get your principal guaranteed to never go down by using fixed indexed annuities instead of variable annuities. The "lure" is guaranteed income, no principal loss, and market-like returns. To learn more about planning your retirement read - Retirement Planning And Annuities.
Image by National Marine Sanctuaries at Flickr.com
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