Fixed Income Needs

[Chasen]

Appreciate all of the great advice!

[Midpack]

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Originally Posted by Chasen 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...

[brewer12345]

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Originally Posted by Chasen Appreciate all of the great advice!

Playing with fire. Who is the carrier? How much does it cost? What does the fine print say?

[LOL!]

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Originally Posted by Chasen ... 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.

[Chasen]

Yes, I think you can cash in as needed.

[REWahoo]

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Originally Posted by Chasen 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

[FIREd]

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.

[REWahoo]

Looks like this is the provision you are referring to as the ability to 'cash in as needed' ? From the Vanuard brochure:

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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.

[mickeyd]

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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.

[rec7]

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Originally Posted by Chasen 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/

[obgyn65]

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 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.

[obgyn65]

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.

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Originally Posted by rec7 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.

[rsingh6675]

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%

[packrat44]

When the term Variable Annuity comes up I am running for the exit. Don't get in my way.

[MrSaturday]

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.

[marko]

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.

[2B]

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.