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Old 05-12-2012, 12:01 PM   #21
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Appreciate all of the great advice!
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Old 05-12-2012, 12:55 PM   #22
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Appreciate all of the great advice!
We just didn't realize a variable annuity with a GLWB rider was a equivalent to fixed income? Thanks for educating us...
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Old 05-12-2012, 01:39 PM   #23
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Appreciate all of the great advice!
Playing with fire. Who is the carrier? How much does it cost? What does the fine print say?
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Old 05-12-2012, 02:51 PM   #24
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Originally Posted by Chasen View Post
...
Don't like giving my money to an insurance company and not being able to
ever access that money again.
Would like to find something guaranteed and safe that I can cash in if needed.
Noticed Vanguard has something like that paying 5.5%.
Any other suggestions?
So you don't want to give money to an insurance company, but you might be OK giving your money to Vanguard who in turn gives it to an insurance company? Does that Vanguard annuity with GLWB allow you to "cash in if needed" without penalties? Anyways, I'm confused.
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Old 05-12-2012, 02:59 PM   #25
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Yes, I think you can cash in as needed.
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Old 05-12-2012, 03:14 PM   #26
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Yes, I think you can cash in as needed.
According to the info in the Vanguard link below, there are defined limits on how much you can withdraw each year - a 'maximum annual withdrawal amount' which appears to be tied to your age when you begin withdrawal, topping out at 6.5% if you delay withdrawals until age 80. I see nothing about the ability to "cash in as needed". What am I missing?

https://personal.vanguard.com/us/wha...drawal-benefit
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Old 05-12-2012, 03:21 PM   #27
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Here is the GLWB brochure with some details:

https://personal.vanguard.com/pdf/z070.pdf?2210060582

I way I understand it, once you start taking the guaranteed income, there is a limit on how much you can withdraw if you don't want to see that guaranteed income cut.
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Old 05-12-2012, 03:33 PM   #28
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Looks like this is the provision you are referring to as the ability to 'cash in as needed' ? From the Vanuard brochure:

Quote:
Access to your investment. Unlike
many other variable annuities, you’ll
have the flexibility to cancel the
GLWB rider at any time, so that you
have complete, unrestricted access
to your money in an emergency
(subject to normal tax regulations).

No surrender charges. Gain
flexibility and save money because
the Vanguard Variable Annuity has
no surrender charges.
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Old 05-12-2012, 04:47 PM   #29
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I have social security, a guaranteed annuity from teachers retirement and some real estate income.
Have you considered stocks as part of your asset allocation? A good shot of Vanguard Total Stock Market Index would do wonders for your mix.
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Old 05-12-2012, 05:55 PM   #30
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Hello everyone.
I'm new to this forum and just retired in 2011.
70 years of age.
Tired of being beat up by the stock market and looking into fixed
income options.
I have social security, a guaranteed annuity from teachers retirement and some real estate income.
Don't like giving my money to an insurance company and not being able to
ever access that money again.
Would like to find something guaranteed and safe that I can cash in if needed.
Noticed Vanguard has something like that paying 5.5%.
Any other suggestions?
CD's but rates right now are in the basement. But could get to the money by losing some interest. Here is 7.2% but you would have to give your money to an insurance company for good. http://www.immediateannuities.com/
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Old 05-13-2012, 02:48 AM   #31
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Have you considered CDs or munis ? I have CDs and munis laddered over the next 12 years. I like the peace of mind that comes with them.
Quote:
Originally Posted by Chasen View Post
Don't like giving my money to an insurance company and not being able to
ever access that money again.
Would like to find something guaranteed and safe that I can cash in if needed.
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Old 05-13-2012, 02:51 AM   #32
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The OP mentioned he doen't like "giving (his) money to an insurance company and not being able to ever access that money again." I assume he is referring to annuities.

Quote:
Originally Posted by rec7 View Post
CD's but rates right now are in the basement. But could get to the money by losing some interest. Here is 7.2% but you would have to give your money to an insurance company for good. Immediate Annuities - Instant Annuity Quote Calculator.
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Check out some of these funds
Old 05-13-2012, 08:16 PM   #33
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Check out some of these funds

Yield
AGDCX 6.2%
DLTNC 7.5%
AWF 7.9%
GIM 5.7%
SDY 3.1%
NLY (Stock) 13.3%

Tax free AFB 6.2%
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Old 05-13-2012, 09:47 PM   #34
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When the term Variable Annuity comes up I am running for the exit. Don't get in my way.
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Old 05-14-2012, 12:48 PM   #35
Confused about dryer sheets
 
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How about a Vanguard managed payout fund?

It still has market volatility and the payout amounts aren't guaranteed, but if your main concern is the psychological effect of market swings this would give you a little insulation from that. The fees are pretty reasonable and you can get some or all of you money back at any time.
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Old 05-14-2012, 03:26 PM   #36
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Anyone care to comment on the TR Price High Yield Fund (PRHYX)?

Yes, yes, it is a 'junk bond' fund but my research shows a fairly steady price and a fairly steady 7.5% yield (more or less) for the past 20 years.

Same with the TRP Spectrum Income Fund, RPSIX which has show a price appreciation over the years.

I've been in Spectrum for 10 years with a steady, monthly ~4% and in the High Yield for over a year at ~ 7.5%.

Yes, I understand the risk, but as a managed fund vs straight bond, I sleep at night....(or shouldn't I?)

Of course, this represents only a portion of my portfolio.
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Old 05-14-2012, 03:33 PM   #37
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Somehow I missed this thread. I'm pleased to see that everyone was as sarcastic and negative as I would have been to prevent this new forum member from falling for a variable annuity. Good job.
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