What does annuitize mean (It can be interpreted different ways)?
I know what an annuity is, but the word "annuitize" can mean different things. In Retirement Accounts/Smooth Withdrawals, ESPlanner asks the user to specify the percent of retirement assets to be annuitized. Does this mean the percent of assets to be used to PURCHASE an annuity in the retail market, or does this mean the percent that are used to SELF-ANNUITIZE, in other words to create your own set of regular withdrawals in a manner that accounts for inflation? Thanks!
Thu, 05/09/2019 - 15:00
It means the amount of
It means the amount of retirement assets that you would be willing to convert to an annuity (i.e., purchase in the market). You'd convert them to an annuity probably through your broker like Fidelity or Vanguard.
Thu, 05/09/2019 - 15:17
Thank! That answer my
Thank! That answer my question. You guys are great.