At age 65, average life expectancy is 18 years. An annuity promises a set amount per year regardless of how long you live. An annuity will yield approximately 7.9 percent of capital per year. Live off the income from the capital, and save the principal sum to give tax free to your heirs. As an excellent example, individuals with trusts and foundations usually spend 5 percent income from capital while preserving the principal for future generations.
Experts agree that the United States is experiencing a severe savings crisis.
We need substantial new savings for investment in high-paying jobs and industries for tomorrow. People mostly focus on Wall Street equities and securities. The bond markets, where investment money is needed for new plants and equipment, can also utilize substantial new capital. There are solid and growing investment opportunities all around the world. Adding hundreds of billions of dollars to private sector investments has the potential to be a substantial growth agenda for the American economy.