Everyone’s situation is different.  Your personal and family circumstances, risk tolerance, age, investment capital available, existing sources of guaranteed income, and retirement income expectations are all important considerations.

A life annuity is for those of us who want safety and guarantees, and don’t want any management responsibilities.  It will guarantee you income for life, or provide income for the lifetimes of you and your spouse. Because you give up flexibility and access to your capital, you need to keep other money available for the unexpected, or have access to money with a secured line of credit against your home.

Annuities can be great for a healthy individual or couple with longevity on their side, and for the financially unsophisticated (or when one spouse is more knowledgeable than the other, it can protect the surviving spouse if they outlive the more financially experienced one).

If you have ever spent sleepless nights worrying about your investments because of market volatility, locking part of your money into annuities will provide risk-free income at a high rate of return relative to current low interest alternatives like term deposits and bonds.  Annuity income is also very tax advantaged, if you invest non registered money.  
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Once in a while, life knocks us for a loop.

Sometimes it presents itself as the abrupt end to a 15-year marriage. Or maybe it’s a child who refuses to communicate with his parents. It can even be a poor business decision that results in bankruptcy.

Sadly, countless people endure these and other life-changing experiences. While each situation is unique, the initial response from most every one often is “I didn’t see it coming.”

Let’s be honest. There probably had been indications along the way. Signals that, had they been acknowledged, might have prevented the problem from escalating. But in some cases there are no warnings, particularly, when it involves one’s health. One day we’re running 10K, the next we’re on life support.

There’s no telling when life will throw a curve ball at us, or in the case of Sandra, hit us over the head with a sledge hammer.
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