As discussed most recently in our post of July 27, 2022, annuity purchase rates for single premium immediate life annuities have become more favorable over the past five months. As a result, you may be considering purchase of a single premium life annuity in the near future to strengthen the Floor Portfolio you use to fund your Essential Expenses. In this post, we will once again discuss how changes in your
- Present value of Essential Expenses,
- Present value of Non-Financial Floor Portfolio assets, or
- Accumulated savings
can affect the optimal investment mix in your financial asset portfolio (accumulated savings) under the Safety-First investment strategy.