Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Fire plan
Old 09-19-2016, 08:59 PM   #1
Confused about dryer sheets
Join Date: Mar 2015
Posts: 2
Fire plan

What do you think of this plan?
62 yrs. still working until Feb. 2017 (probable) wife 67 retired has modest pension
CFP recommends:
Delay SS to 70 (8 yrs) for me, wife claimed at FRA
Take immediate annuity for 8 years (280k)brokerage acct. for any difference needed
Remaining IRA 1/3= structured note, 2/3 moderate risk fund
At 70 take SS, 2 annuities life time riders, covers basic spending for 20 yrs..without Tax deferred except RMD's

thanks for feedback

Sent from my iPad using Early Retirement Forum

nazoomer 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 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 09-19-2016, 10:55 PM   #2
Thinks s/he gets paid by the post
Sunset's Avatar
Join Date: Jul 2014
Location: Chicago
Posts: 2,626
Could be your CFP wants to sell you an annuity for the commission ?

You don't say what expenses are vs wife modest pension.
Will you get health care coverage ? If not need to think of the expense of that.

It's good IMHO that you are planning to take SS at 70, although one of the reasons for men to do this is to provide a larger SS for their wife after the man statistically had died. Since your wife is 5 yrs older, odds are she will die first or you'll both go at the same time.
It could be argued that you taking SS at FRA would be good enough if you needed the money, since the spouse idea doesn't apply.

Sunset is offline   Reply With Quote
Old 09-20-2016, 05:38 AM   #3
Full time employment: Posting here.
Join Date: Jul 2011
Posts: 636
SS answer depends on each of your amounts and your individual health and life expectancy. What's a "structured note"? Sounds like another annuity. And probably too much annuity component already. Keep in mind you already have SS and pension which are also annuities. Is the CFP a fiduciary or a salesperson?
panacea is offline   Reply With Quote
Old 09-20-2016, 05:45 AM   #4
Thinks s/he gets paid by the post
Koolau's Avatar
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 2,326
Generally you will not find a lot of support for annuities here. Without knowing your portfolio, it would be difficult to judge whether you could "do it yourself" without paying an insurance carrier to "help" you obtain periodic payments from your stash.

Most here think you can structure your portfolio and take reasonable withdrawals (on the order of 4%) and stand a very good chance of not running out of money - especially if you were willing to occasionally tighten the belt during a market downturn.

Still, annuities can be structured to meet most of your income needs. You just know going in that you are paying the insurance company to take your money and give it back to you in payments. Big issue is that major inflation can defeat even an inflation adjusted annuity. The theory is that, properly structured, your portfolio can survive even with unexpected inflation - of course, who knows till we get there. Oh, and of course, the annuity company might run into their own financial difficulties.

Not saying "no" just "why?" As always, YMMV.
Ko'olau's Law -

Anything which can be used can be misused. Anything which can be misused will be.
Koolau is offline   Reply With Quote
Old 09-20-2016, 05:56 AM   #5
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: 13,197
Originally Posted by nazoomer View Post
What do you think of this plan?....
I think it is good for your CFP, probably not so good for you.

Take your monthly annuity payments * 96 months and it will probably be close to your $280k premium...meaning that the return that they are paying you is minimal. You would be better off just putting that $280k in an online FDIC insured savings account that pays 1% and arranging an automatic monthly withdrawal for your benefit. That way, if your circumstances change and you need that $280k you can get to whatever is left... you can't do that with the annuity that he is proposing.

Similarly, I'm skeptical about structured notes... after all the limitations and complexities their returns are poor. A bond ETF would be just as good or better.

Use this site to see what you should do on SS.
SSAnalyze - Bedrock Capital Management

Your best bet... create your own annuity for 62 to SS buy taking an amount equal to 8 years of SS payments in an online savings account, put the rest in Vanguard's Wellesley or Wellington funds, ditch the CFP and go have a great retirement.
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
pb4uski is offline   Reply With Quote
Old 09-20-2016, 01:40 PM   #6
Thinks s/he gets paid by the post
Join Date: Oct 2006
Posts: 3,636
I agree with everyone above.

Also, is it possible that your eventual SS benefits will cover your basic spending?

Do you have a plan for long term care expenses?

I don't see why you would want a "structured note". In particular, you didn't mention what index it was tracking.
Independent is offline   Reply With Quote
Old 09-20-2016, 03:24 PM   #7
Recycles dryer sheets
Join Date: Dec 2012
Posts: 92
This, big time, from pb4uski:

"Your best bet... create your own annuity for 62 to SS buy taking an amount equal to 8 years of SS payments in an online savings account, put the rest in Vanguard's Wellesley or Wellington funds, ditch the CFP and go have a great retirement."

Take a deep breath and do it it really is not hard at all. Your CFP is definitely not giving you advice that is good for you, only good for the CFP.

mamadogmamacat is offline   Reply With Quote

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

Similar Threads
Thread Thread Starter Forum Replies Last Post
Safe car part of health plan and/or retirement plan Buckeye Health and Early Retirement 21 07-10-2016 02:58 PM
50 year plan, best way to plan kat FIRECalc support 22 01-01-2009 05:38 AM
Fire! Fire!---Not FIRE mickeyd Other topics 16 11-18-2008 04:19 PM
Stock Market Decline-Tests your beliefs - Have a plan and work the plan dex FIRE and Money 21 08-18-2007 01:24 PM
35 buckets plan, starting WR of 7.4% - punch holes in me plan citril FIRE and Money 35 03-10-2007 05:46 PM


All times are GMT -6. The time now is 07:51 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.