Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Old 01-15-2014, 05:53 AM   #21
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,872
Quote:
Originally Posted by clifp View Post
When/if interest rates rise, I'll consider buying a deferred annuity. Although in my case I don't think I'll have payments start before age 80.
True interest rates suck at the moment. That's where TIAA-Traditional is different from many annuity products because it's interest rate tracks the prevailing long term rates with a guaranteed minimum of 3%. The pay out options also mean that you can make it into a true life time income annuity of arrange it to operate more like a very long term CD with access to your principal over a period of 10 years.
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
nun is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-06-2014, 10:25 PM   #22
Confused about dryer sheets
 
Join Date: Feb 2014
Location: Orange
Posts: 1
Hi. I'm new to this website and seeking opinions on Annuities. I've ready many postings on several sub-forums on the site. I have found many interesting points. We are early 50s, and are in a financial position where we can start working part time. In the process of laying out a financial plan with a Fidelity Advisor, he is recommending using a portion of our IRA funds to purchase a Fixed Deferred Annuity with a 3% COLA. This Annuity would provide a low-risk future funding/income base. The annuity would start paying @ 65, about 12 years from now. The proposed Annuity would require ~27% of our current investible funds, which would then provide about a 42% of our future projected income needs on a yearly basis (all referenced to today's dollars - to keep apples-apples). The remaining income needs would amply be covered by the remaining investible funds and social security.

Please share your thoughts an opinions on this strategy.

Thanks, Phil
Phil_1960 is offline   Reply With Quote
Old 02-06-2014, 10:29 PM   #23
gone traveling
 
Join Date: Nov 2013
Location: Los Angeles
Posts: 202
Quote:
Originally Posted by Phil_1960 View Post
Hi. I'm new to this website and seeking opinions on Annuities. I've ready many postings on several sub-forums on the site. I have found many interesting points. We are early 50s, and are in a financial position where we can start working part time. In the process of laying out a financial plan with a Fidelity Advisor, he is recommending using a portion of our IRA funds to purchase a Fixed Deferred Annuity with a 3% COLA. This Annuity would provide a low-risk future funding/income base. The annuity would start paying @ 65, about 12 years from now. The proposed Annuity would require ~27% of our current investible funds, which would then provide about a 42% of our future projected income needs on a yearly basis (all referenced to today's dollars - to keep apples-apples). The remaining income needs would amply be covered by the remaining investible funds and social security.

Please share your thoughts an opinions on this strategy.

Thanks, Phil
That "adviser" from Fidelty is a salesman -- Not a fiduciary. Legally that salesman does not work for you and your best interests even though it might appears that way. They are trying to sell you commission based products that pay themselves and Fidelity the highest commissions. Find a fiduciary fee-only registered investment adviser for a one time consultation.

Here's a quote from Forbes Magazine: "We don’t recommend an allocation to annuities for ANY portion of your portfolio. We believe an age-appropriate allocation to bonds provides a similar boost to the likelihood you will have sufficient assets in retirement."
ETFs_Rule is offline   Reply With Quote
Old 02-06-2014, 10:48 PM   #24
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,872
I'd look into deferring SS before I bought the annuities that are on offer now. What are the expenses and payout rate of this deferred annuity. I guarantee that they will not be good.
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
nun is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


» Quick Links

 
All times are GMT -6. The time now is 06:38 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.