Found it.
https://www.advisorperspectives.com/art ... at-age-104
https://www.advisorperspectives.com/art ... at-age-104
Yea, his issue with SPIAs was inflation. It's a real concern but can be mitigated somewhat by not annuitizing everything, buying multiple SPIAs over a 15 year period, etc.Some argue that a single-premium immediate annuity (SPIA), by theoretically insuring against longevity in a way that a TIPS ladder doesn’t, also serves the retiree well. Trouble is, there aren’t any inflation-adjusted ones available. As put by one of Paul Samuelson’s most illustrious students, Zvi Bodie, buying a nominal annuity amounts to “betting that future inflation rates will be lower than the market consensus at the time the annuity is purchased … this sort of speculation is imprudent for retirees.” In other words, if long-term price rises significantly outstrip expectations, a SPIA’s supposed longevity insurance melts away in a blizzard of future funny money.
Statistics: Posted by White Coat Investor — Sun Jul 28, 2024 3:34 pm — Replies 13 — Views 424