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Old 10-06-2010, 06:34 PM   #41
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Originally Posted by fchelp View Post
How would the answers/advice here differ if the 55-er was buying a 15 year period certain SPIA to add some certainty until SS kicked in?
I am not an annuity expert, but I believe in a case like this there would be little gain from mortality credits, and you will have basically made yourself a into the economic equivalent of an investor who buys a 15 year fully amortizing mortgage, though the adminstrative and credit issues may be different. That might be cheaper to do, and somewhat more securely too, by funding whatever you decide is the most appropriate CD ladder and over the 15 years spend income and gradually spend down the principle too. An ordinary 15 year mortgage amortization with the proper interest rate for your current fund can give you guidance about how much capital you will need to fund the desired draw. Others on this forum have done a similar but less radical plan of taking a larger than usually thought prudent withdrawal rate from a conservative balanced portfolio. The limiting case here is the 15 year complete liquidation, provided you avoid any assets with volatile pricing.


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Old 10-06-2010, 06:41 PM   #42
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I can't help but notice the OP has not joined in the lively discussion that's ensued since this thread was posted. Seems to happen often.

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Old 10-06-2010, 06:41 PM   #43
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Originally Posted by Midpack View Post
Good points. To the first, I would get updated annuity prices at least annually as it won't be a smooth curve at all.
Actually, they change every week. When were were in the process of purchasing our first SPIA, we got a call the same day we returned (via overnight) the application to Fidelity (the SPIA provider).

They wanted us to know that the rates had changed, and they had another company (Fidelity acts as the clearinghouse for several SPIA providers) that had changed their return by a fraction of a percent.

They sent the new application data overnight and distroyed our first application.

SPIA rates are just like mortgages; they can turn in an instant...
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Old 10-06-2010, 11:04 PM   #44
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Originally Posted by Purron View Post
Seems to happen often.
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Old 10-08-2010, 01:34 PM   #45
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Originally Posted by Purron View Post
I can't help but notice the OP has not joined in the lively discussion that's ensued since this thread was posted. Seems to happen often.
Yup my new rule is not spend more than 3 minutes responding to a new posters query until they've posted a follow up to their original post.
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Old 10-08-2010, 05:18 PM   #46
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Probably a good rule of thumb (the 3 minute rule that is.) I have digested the feedback and, for now anyway, have decided not to go the immediate annuity route. Thanks to all for your contributions. So what the heck do I do with the cash? (Right now it's parked in a bank money market account earning 1.2%.) I'm having a tough time getting into the market.
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Old 10-08-2010, 05:29 PM   #47
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You've missed the 5% for 10 years at Pen Fed. If it were me I'd be looking at Wellesley.

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