As you manage these two goals, remember to build an emergency fund as well, so that you have ready cash to
cover unanticipated expenses.
Fortunately, some permanent life insurance policies, while offering a death benefit, also provide a cash value that can be used to
cover unanticipated expenses.
So you'll want to be sure that after buying the annuity you have enough left over from your lump sum or invested in other accounts to
cover unanticipated expenses.
If your nest egg's value drops sharply, say, due to a market downturn or higher - than - expected withdrawals to
cover unanticipated expenses, you may need to trim your scheduled withdrawal to avoid running through your savings prematurely.