A Ladder of Annuities Can Hedge Your Bets

Smooth out the highs and lows of interest rates, and payouts, by staggering annuity purchases.

EDITOR'S NOTE: This article was originally published in the August 2008 issue of Kiplinger's Retirement Report. To subscribe, click here.In today's low interest-rate environment, locking up a big chunk of your portfolio in a fixed immediate annuity may not seem wise. But if you like the security of guaranteed payments and you believe rates will rise in coming years, you can hedge your bets by laddering annuities.

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Rachel L. Sheedy
Editor, Kiplinger's Retirement Report