Schwab Intelligent Income vs. an Annuity: Which Is Better?
Most people worry about running out of money in retirement. In response, Charles Schwab launched Schwab Intelligent Income™ in 2020. The program promises monthly income from a regularly rebalanced portfolio of diversified ETFs plus a cash account. Participants pay no commissions or advisory fees. This is the newest strategy to generate retirement income.
In contrast, the income annuity is a strategy that has been around a long time. It provides a guaranteed income for a lifetime or a fixed term. An income annuity can offer deferred or immediate payments.
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A single-premium immediate annuity, or SPIA, is a popular choice that starts paying income right away. How does it stack up against Schwab Intelligent Income? via a long-established website, it’s not surprising I’d believe that, but as you’lI see, I have good reasons.
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