|
|
05-12-2012, 07:08 AM
|
#1
|
Confused about dryer sheets
Join Date: May 2012
Location: Dallas
Posts: 8
|
Fixed Income Needs
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?
|
|
|
|
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!
|
05-12-2012, 07:19 AM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,005
|
Quote:
Originally Posted by Stan Katz
Would like to find something guaranteed and safe that I can cash in if needed.
Noticed Vanguard has something like that paying 5.5%.
|
They do? What is it?
__________________
Numbers is hard
|
|
|
05-12-2012, 07:23 AM
|
#3
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,206
|
Quote:
Originally Posted by Stan Katz
Would like to find something guaranteed and safe that I can cash in if needed.
Noticed Vanguard has something like that paying 5.5%.
Quote:
Originally Posted by REWahoo
They do? What is it?
|
|
Sign me up too!
__________________
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: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
|
|
|
05-12-2012, 07:33 AM
|
#4
|
Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,595
|
How about 10 Year sovereign bonds from Portugal and Spain?
|
|
|
05-12-2012, 07:34 AM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,206
|
Quote:
Originally Posted by MichaelB
How about 10 Year sovereign bonds from Portugal and Spain?
|
You don't like Greece?
__________________
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: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
|
|
|
05-12-2012, 07:34 AM
|
#6
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
|
Quote:
Originally Posted by Midpack
Sign me up too!
|
+1 Who needs equities?
|
|
|
05-12-2012, 07:39 AM
|
#7
|
Confused about dryer sheets
Join Date: May 2012
Location: Dallas
Posts: 8
|
Thought I was going to learn something here, but looks like I will need to educate you guys.
It's a rider available through the Vanguard Variable Annuity called "The Guaranteed Lifetime Withdrawal Benefit."
GLWB
__________________
Stan
|
|
|
05-12-2012, 07:40 AM
|
#8
|
Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,595
|
Quote:
Originally Posted by Midpack
You don't like Greece?
|
I love Greece, but he said "guaranteed". Spain and Portugal are safer, aren't they?
|
|
|
05-12-2012, 07:50 AM
|
#9
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,206
|
Quote:
Originally Posted by MichaelB
I love Greece, but he said "guaranteed". Spain and Portugal are safer, aren't they?
|
Indeed, you know I was kidding...
__________________
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: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
|
|
|
05-12-2012, 07:51 AM
|
#10
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,005
|
Quote:
Originally Posted by Stan Katz
Thought I was going to learn something here, but looks like I will need to educate you guys.
It's a rider available through the Vanguard Variable Annuity called "The Guaranteed Lifetime Withdrawal Benefit."
GLWB
|
Stan, I've learned that whenever I attempt to educate someone, chances are I'm the one who will be getting educated....
__________________
Numbers is hard
|
|
|
05-12-2012, 07:51 AM
|
#11
|
Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,595
|
Quote:
Originally Posted by Midpack
Indeed, you know I was kidding...
|
And if anyone thinks I consider Spain and Portugal safe I really need to start using emoticons...
|
|
|
05-12-2012, 07:53 AM
|
#12
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,005
|
We need a sar chasm emoticon to bridge the understanding gap.
__________________
Numbers is hard
|
|
|
05-12-2012, 07:59 AM
|
#13
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,206
|
__________________
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: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
|
|
|
05-12-2012, 08:07 AM
|
#14
|
Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,595
|
midpack, I was wondering the same thing. If this is basically an annuity it seems unlikely one can have the 5.5% return and access to the entire original invested amount.
|
|
|
05-12-2012, 08:21 AM
|
#15
|
Full time employment: Posting here.
Join Date: Jul 2011
Posts: 723
|
Quote:
Originally Posted by MichaelB
midpack, I was wondering the same thing. If this is basically an annuity it seems unlikely one can have the 5.5% return and access to the entire original invested amount.
|
+1
The only way an insurance company can provide this kind of lifetime withdrawal benefit is if they have restrictions on the amount that can be withdrawn.
Stan, the 5.5% is simply the withdrawal benefit, not really an investment return. You're simply getting return of principal until you get your money back. You could really come out ahead if you significantly outlive the average person though.
Unfortunately, there is nothing like you're describing. In this low interest rate environment, to get return, you have to take risk.
I think the facepalm is the closest thing we have to a sarcasm emoticon.
|
|
|
05-12-2012, 08:36 AM
|
#16
|
Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,474
|
How about something like the Vanguard Target Retirement Funds? There is some risk, but one can pick a fund depending on how much risk is acceptable. Here's the Vanguard Target Retirement 2010 Fund:
https://personal.vanguard.com/us/fun...FundIntExt=INT
The SEC yield is 2.5%, but you have access to the principal as well if/when you need it. Click on the Price and Performance tab to look at returns and see more information about yield.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
|
|
|
05-12-2012, 09:02 AM
|
#17
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 17,178
|
Guaranteed and safe would be something like US Treasuries or CD's insured by the FDIC. The yields are miserable. 30 year Treasuries are about 3.3%. Most CD's under 5 years are under 2%. Can you live on that little interest?
__________________
Comparison is the thief of joy
The worst decisions are usually made in times of anger and impatience.
|
|
|
05-12-2012, 09:27 AM
|
#18
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,588
|
The problem is that, if it sounds too good to be true, it isn't.
I will be happy to get 3.5% (inflation adjusted) of dividends off my portfolio--forever.
__________________
I have outlived most of the people I don't like and I am working on the rest.
|
|
|
05-12-2012, 09:35 AM
|
#19
|
gone traveling
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
|
Quote:
Originally Posted by Chasen
Thought I was going to learn something here, but looks like I will need to educate you guys.
|
Uh, with a VA as a choice, I don't think "we" need to be educated. I believe most of us folks on this forum don't think that a VA is an "option", at all ...
(We may look dumb, but we're smarter than you may think! )...
|
|
|
05-12-2012, 10:09 AM
|
#20
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,588
|
Quote:
(We may look dumb, but we're smarter than you may think! )...
|
Naw, I really am that dumb.
__________________
I have outlived most of the people I don't like and I am working on the rest.
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|