how do annuitites affect tvm problems and investment outcomes?

Answer 1

"tvm" problems?

As for annuities, the "time" problem is often handled in immediate annuities by selecting a "time certain" option. If you are worried that you will not live long enough to fully benefit from what you put in, you select a "time certain" such as 5 or 10 years. In that way, if you live only 3 years after retirement, SOMEBODY gets the other 2 or 7 years, or whatever the period--a spouse, a child, a charity, etc. These are set to insure at least the return of your money. In that way, your investment outcome at least breaks even.