investing $75,000 lump sum, annuity or something else

Determining what someone should do with any amount of money depends on a number of factors.

These include your living expenses, whether you currently earn enough money "to make ends meet".

But you have already stated that you want to add your "$75, 000 lump sum" towards a Lifetime Retirement Stream as a supplement to Social Security Retirmement Benefits, plus any other pension or other savings that you have invested.

So the next thing to look at is where is our economy going in the next few years -- say the next five years. It's clear that our economy, particularly our Financial Industry -- Banks, Investment and Brokerage Firms. some Insurance Firms -- are in BIG Trouble.

We can define BIG Trouble as meaning that their Investments -- the investments that they made in behave of folks like you and me -- have TANKED. So that in many cases, they have been forced To FREEZE WITHDRAWLS by their invstors, their customers so that now you cannot pull your money out, and on top of that, the value of your investment is dropping!

When you talk to these investment houses, these banks and insurance firms, remember that they are first and foremost SALES People regardless of their title such as Financial Advisor, Investment Counselor, etc., etc.

They want you to BUY the particular investment/financial products that they are trying to sell you. That's how they earn their living.

Since many of these Financial Products are now suspect, it suggests that you might want to steer clear of them for awhile -- a few years.

In the meantime, Economists are forecasting an increase in INFLATION, in the Cost-Of-Living. To me, that means only one thing. And that is that I should invest in TREASURY BONDS that are Indexed to INFLATION.

Quoting from Wipikedia:

"Treasury Inflation-Protected Securities (or TIPS) are the inflation-indexed bonds issued by the U.S. Treasury.

"These securities were first issued in 1997. The principal is adjusted to the Consumer Price Index, the commonly used measure of inflation.

"The Coupon Rate is constant, but generates a different amount of interest when multiplied by the Inflation-Adjusted Principal, thus Protecting the Holder Against Inflation.

"TIPS are currently offered in 5-year, 7-year, 10-year and 20-year maturities."

Be careful that you are not being sold so-called Government insured bonds or other such squirrely named debt -- because that is what bonds are, they are instruments of debt.

If the Bond Issuer goes bankrupt, then you lose your money. So you want to buy U.S. Treasury Issued Bonds!!!

I would be very careful before you take the advice given in the prior post. I'm not saying that the person responded doesn't bring up some valid points about market risk in todays environment, however, I have never heard of insurance companies not allowing a client to withdrawal their funds... and we are specifically talking about annuity products, correct? Annuities are designed for just that, taking withdrawals.

TIPS were also mentioned, but just like everything else, they too come with some risk; this doesn't answer you question and I could go on for sometime about this... point of the matter is the income you can generate from a TIP is probably nominal compared to what a Single Premium Immediate Annutiy would do. If you're interested in learning more about TIPS check out http://www.treasurydirect.gov/.

Now, to try and answer your question.... yes, you can invest lump sum into an Immediate Annuity or a mutual fund (hopefully something like the Franklin Templeton Income fund) or you can use deffered annuities with income riders (variable, or fixed indexed). The best advice I can give you here is DO NOT DO THIS YOURSELF and DO NOT LET THE LAST POSTER SCARE YOU ABOUT FINANCIAL PROFESSIONALS. They are there to help you... there are so many cosiderations for you to make... you truly need the advice of someone who has the education and experience to advise you on such matters, not someone who read an article on wikipedia. Look up somone who is a Certified Financial Planner in your area or someone who is a Regisitered Income Sepcialist.

Best of luck to you!

I would be very careful before you take the advice given in the prior post. I'm not saying that the person responded doesn't bring up some valid points about market risk in todays environment, however, I have never heard of insurance companies not allowing a client to withdrawal their funds... and we are specifically talking about annuity products, correct? Annuities are designed for just that, taking withdrawals.

TIPS were also mentioned, but just like everything else, they too come with some risk; this doesn't answer you question and I could go on for sometime about this... point of the matter is the income you can generate from a TIP is probably nominal compared to what a Single Premium Immediate Annutiy would do. If you're interested in learning more about TIPS check out http://www.treasurydirect.gov/.

Now, to try and answer your question.... yes, you can invest lump sum into an Immediate Annuity or a mutual fund (hopefully something like the Franklin Templeton Income fund) or you can use deffered annuities with income riders (variable, or fixed indexed). The best advice I can give you here is DO NOT DO THIS YOURSELF and DO NOT LET THE LAST POSTER SCARE YOU ABOUT FINANCIAL PROFESSIONALS. They are there to help you... there are so many cosiderations for you to make... you truly need the advice of someone who has the education and experience to advise you on such matters, not someone who read an article on wikipedia. Look up somone who is a Certified Financial Planner in your area or someone who is a Regisitered Income Sepcialist.

Best of luck to you!