Absent the insurance company going bust (unlikely -they have reinsurance and in some countries annuities/insurance policies are also backed by industry bodies or the government) there is no risk to be passed on to the customer in the case of a fixed annuity or policy. If the company sells you a policy that states a given payout or minimum payout you have a fairly high expectation of receiving that payout.Established wrote: ↑Tue Aug 31, 2021 11:27 amRetireJapan -> No payout is "guarenteed" , the investing company is taking risk, that will be passed on to you. Yes, high degrees of fixed income investment can cut the risk, but the fees would eat away any return. This is not a free lunch.
This is different for variable annuities, which do involve the insurance company investing on your behalf (and taking fees).
My plan for managing my investments when I am old and incapable is to train my granddaughter to do it -wish me luck!
So far she is mastering board games (most recent one Dominion), which incorporate the necessary skills of choosing a strategy and estimating probabilities etc