Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Annuity Trends
Old 01-04-2013, 06:45 AM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,976
Annuity Trends

I've been to immediateannuities.com many times for reference, but I never noticed their Annuity Trends - Interest Rate Trends page. I stumbled on this while replying to another thread a few days ago.

Lots of good charts, mostly showing clearly why now is an historically bad time to buy an annuity (or take a pension with an equivalent lump sum) if you have other options. Note the historically poor payouts & yields (left & right axes). Just one chart below...

When interest rates/bond yields improve eventually, immediate annuities will be more viable. If you bought an annuity or took a pension from 2003-2009 you did far better (congrats). Those conditions will come again one day...
Attached Images
File Type: jpg 5.jpg (38.6 KB, 38 views)
__________________

__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is online now   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 01-04-2013, 03:37 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,432
While I think the overall conclusion is still solid, I note that the payout is for a period certain annuity rather than a life contingent annuity. I suspect a life contingent line would have a similar slope.
__________________

__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is offline   Reply With Quote
Old 01-05-2013, 07:05 AM   #3
Thinks s/he gets paid by the post
obgyn65's Avatar
 
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
As discussed in other threads here, I have also noticed the downward trend, hence my decision in 2012 to start buying deferred annuities. Only time will tell whose approach was better.
Quote:
Originally Posted by Midpack View Post
I've been to immediateannuities.com many times for reference, but I never noticed their Annuity Trends - Interest Rate Trends page. I stumbled on this while replying to another thread a few days ago.

.
__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
obgyn65 is offline   Reply With Quote
Old 01-05-2013, 02:17 PM   #4
Thinks s/he gets paid by the post
MooreBonds's Avatar
 
Join Date: Aug 2004
Location: St. Louis
Posts: 2,091
Quote:
Originally Posted by obgyn65 View Post
As discussed in other threads here, I have also noticed the downward trend, hence my decision in 2012 to start buying deferred annuities. Only time will tell whose approach was better.
Just out of curiosity - did you go through a broker? Have you found any websites to give quotes on deferred annuities like the ones you have?

I've tried searching the net for deferred annuities for quotes just to see what they're like, and all I can find are references to the traditional fixed-rate "deferred" annuity (like a CD).
__________________
Dryer sheets Schmyer sheets
MooreBonds is offline   Reply With Quote
Old 01-05-2013, 02:28 PM   #5
Thinks s/he gets paid by the post
obgyn65's Avatar
 
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
No. I followed the advice given on this website about those companies with the most financial strength. Then I did some online research and only at that stage I called three of them. When I compared the three quotes given to me, only one them clearly stood out.

Quote:
Originally Posted by MooreBonds

Just out of curiosity - did you go through a broker? Have you found any websites to give quotes on deferred annuities like the ones you have?

I've tried searching the net for deferred annuities for quotes just to see what they're like, and all I can find are references to the traditional fixed-rate "deferred" annuity (like a CD).
__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
obgyn65 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
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


 

 
All times are GMT -6. The time now is 08:15 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.