I'm 52 and planning to retire around 53. My Fidelity CFP is recommending a guaranteed lifetime annuity over a 72(t) approach to fund early retirement. The models show long-term results are roughly the same either way, but I've always been skeptical of annuities. What are your thoughts? Has anyone weighed these two options?

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Posted by Everyday Is Saturday

Member since Dec 2025

2789 posts

Posted on 10/17/26 at 9:28 pm to oildog

I’m skeptical of annuity costs / commissions and CFPs who recommend them.

Big fan of retiring early to control time / financial independence, even if costs are a bit high (within reason).

But I would think twice about high annuity costs. Is Rule of 55 an option?

2 more years…?

This post was edited on 10/17/26 at 9:33 pm

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Posted by Rize

Spring Texas

Member since Sep 2011

20134 posts

Posted on 10/17/26 at 9:32 pm to Everyday Is Saturday

quote:
I’m skeptical of annuity costs / commissions. Big fan of retiring early to control time / financial independence. Even if costs are a bit high. But I would think twice about annuity costs and the CFP who recommends them.

How old were you when you retired?

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Posted by La Place Mike

West Florida Republic

Member since Jan 2004

32035 posts

Posted on 10/17/26 at 10:03 pm to oildog

quote:
My Fidelity CFP is recommending a guaranteed lifetime annuity over a 72(t) approach to fund early retirement.

Is he advising you to do one over the other or is he advising you to use the annuity to fund the 72t bridge?

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Posted by oildog

Member since Jun 2016

99 posts

Posted on 10/17/26 at 10:07 pm to Everyday Is Saturday

Rule of 55 was/is the original plan, but just looking at different options. The annuity is fairly simple with minimal fees the way I understand it. “Buy” the annuity and they pay me ~7% for life.

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