Should clients invest $1 million of their retirement savings in an annuity?

Should I invest $1 million of my retirement savings in an annuity?
While some experts recommend annuitizing at least 25% of savings to generate guaranteed income in retirement, clients should weigh other options before making a decision, according to this article on CNNMoney. Clients may be better off having a more comprehensive plan that will tap all their financial resources to produce the retirement income that they need, than using a substantial portion of their savings to buy an annuity product. The article offers tips for creating a comprehensive retirement income strategy, including buying annuities based on their financial situation.
How to close the Social Security COLA gap
While Social Security raises benefits to help retirees cope with inflation, the COLA does not accurately reflect the increase in their actual cost-of-living expenses, according to this article on Forbes. To close the widening gap between COLA and the actual living cost increases, investors may want to improve their portfolio's returns by focusing on mutual and exchange-traded funds, as these funds provide steady growth on dividends.

We don't have to be broke in retirement
As Congress is poised to make major tax changes, lawmakers should consider increasing the contribution limits to 401(k) plans, IRAs and other tax-deferred retirement accounts, writes a columnist on Bloomberg. Retirement investors should be allowed to contribute as much as $36,000 to a 401(k) plan every year, while the annual IRA contribution cap should be raised to $15,000, writes the columnist. "Without any changes, the U.S. will face a retirement crisis in the next 20 years or so. Raising the limits would be the first of several steps the U.S. should take to avoid that fate."

Why retirees aren't enjoying their wealth
Retirees who are living off of a pension plan from their former employers are some of the happiest people, writes a financial advisor on Kiplinger. "In order to get maximum enjoyment from your wealth, it's not enough to know you have more money than you need. You have to know how much more," the expert writes. As such, he advises a retired couple who wants to enjoy their fortune while still alive by investing some of their assets in financial products that offer guaranteed income for their needs and spending the rest of their wealth on worthwhile pursuits and interests.

What Warren Buffett’s breakfast can teach us about retirement saving
If retirement savers have to learn something from popular investor Warren Buffett, it has to be his focus on staying invested while having an appropriate strategy to manage risk, according to this article on MarketWatch. "The money is made in investments by investing and by owning good companies for long periods of time. If they buy good companies, buy them over time, they're going to do fine 10, 20, 30 years from now," Buffett said in an interview.

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