No. of Recommendations: 3
I retired in January. Laddered five years' expenses shortly thereafter, standard issue "hedge against down turn" (hmmm...) behavior. First two years were treasuries. Years three to five were...annuities. They paid about 80bp above what treasuries or CDs offered so it was a pretty easy decision. I would have never thought I would buy an annuity, but the arithmetic case for them - for this purpose - made sense. Just something to think about that I would never have considered, but talking to Schwab's fixed income guy (who facilitated the treasuries) he suggested this as an option to explore because of the yield.
