Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: Go with TIPs or am I crazy?
Old 06-13-2005, 03:51 PM   #141
Full time employment: Posting here.
 
Join Date: Oct 2003
Posts: 961
Re: Go with TIPs or am I crazy?

For articles on annuities and retirement see:


Making Retirement Income Last a Lifetime

Reducing Retirement Income Risks: The Role of Annuitization


- Alec
__________________

__________________
ats5g 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 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!

Re: Go with TIPs or am I crazy?
Old 06-13-2005, 04:29 PM   #142
Moderator Emeritus
laurence's Avatar
 
Join Date: Feb 2005
Location: San Diego
Posts: 5,234
Re: Go with TIPs or am I crazy?

Thanks, I'll check it out. I agree I'm too young at this point, but when I retire, it's good to have a clear view of all options.
__________________

__________________
laurence is offline   Reply With Quote
Re: Go with TIPs or am I crazy?
Old 06-13-2005, 04:42 PM   #143
Thinks s/he gets paid by the post
Eagle43's Avatar
 
Join Date: Jan 2005
Location: DFW
Posts: 1,879
Re: Go with TIPs or am I crazy?

Shouldn't I consider my two pensions an annuity? I mean, they gonna come forever, I hope, or until I die, whichever is first. One pension is military, the other is from a large blue-chip corp. Probably could lose one in the worst scenario, but surely not both.
__________________
Resist much. Obey Little. . . . Ed Abbey

Disclaimer: My Posts are for my amusement only.
Eagle43 is offline   Reply With Quote
Re: Go with TIPs or am I crazy?
Old 06-13-2005, 07:32 PM   #144
Recycles dryer sheets
 
Join Date: Jun 2005
Posts: 261
Re: Go with TIPs or am I crazy?

Quote:
Originally Posted by Eagle43
Shouldn't I consider my two pensions an annuity?*
Of course you should, as long as they generate lifetime income streams.
__________________
"Against stupidity, God Himself fights in vain."
Art is offline   Reply With Quote
Re: Go with TIPs or am I crazy?
Old 06-13-2005, 09:41 PM   #145
Thinks s/he gets paid by the post
 
Join Date: Mar 2004
Posts: 1,318
Re: Go with TIPs or am I crazy?

Sure, Social Security could be considered an annuity. If the U.S. govt, despite all its foibles, were to issue annuities, I would actually be interested. Despite assurances to the contrary, I do find the risk of any organization staying afloat for the 60+ years I might need them to be around, enough of a risk that it makes annuities a non-starter for me.

Can anyone spell 'fraud"?

Even AIG is being pulled into the fray for funny business, though I think that is more about how to keep their share price up than monkeying with insureds funds. Still, you never know.

One idea I find interesting, though, is to set up a private annuity with an elderly parent. Parent gives the kids the lumpsum, and the kids promise to pay the parent a regular monthly or annual payment in perpetuity. Kind of solves the problem of whether you are overpaying, or whether fees and commissions are taking up too much of the benefit -- it all stays in the family no matter what.

Not right for everybody, I know, but where it can work, it is a dandy way to transfer assets from older to younger generation. For most early retirees, that means we would be receiving the lumpsum rather than paying it, but that isn't such an awful thing, either.
__________________
ER for 10 years; living off 4.3% of savings (and a few book royalties ;-)
ESRBob is offline   Reply With Quote
Re: Go with TIPs or am I crazy?
Old 06-13-2005, 11:14 PM   #146
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,380
Re: Go with TIPs or am I crazy?

Quote:
Originally Posted by ESRBob
One idea I find interesting, though, is to set up a private annuity with an elderly parent.* Parent gives the kids the lumpsum, and the kids promise to pay the parent a regular monthly or annual payment in perpetuity.* Kind of solves the problem of whether you are overpaying, or whether fees and commissions are taking up too much of the benefit -- it all stays in the family no matter what.

Not right for everybody, I know, but where it can work, it is a dandy way to transfer assets from older to younger generation.* For most early retirees, that means we would be receiving the lumpsum rather than paying it, but that isn't such an awful thing, either.*
What would concern me is what happens in a divorce? (A divorce or bankruptcy of the child underwriting the annuity.) I imagine one could theorize all day long, but if push came to shove, who knows what might happen? I would not have wanted to subject my aging parents to the risks in my marriage. Even less would I want to subject myself to the risks in either of my kids' marriages. Or anybodies, for that matter.

haha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Re: Go with TIPs or am I crazy?
Old 06-14-2005, 07:01 AM   #147
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: Go with TIPs or am I crazy?

I have the same worry as HaHa. One way to address that worry is to secure the annuity with collateral. For example, if you deposited the funds from the parents into a brokerage account, you would pledge that account to the parents to secure the obligation to make the payments to the parents. To be valid against your creditors' claims, you would need to perfect that security interest under state law. The broker would have to acknowledge the security interest. For some of my lender clients, I have taken brokerage accounts, including Vanguard accounts, as collateral for a loan. Vanguard was always cooperative. Some brokerages would not cooperate, like Scottrade.

A thought anyway.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: Go with TIPs or am I crazy?
Old 06-14-2005, 10:25 AM   #148
Thinks s/he gets paid by the post
tryan's Avatar
 
Join Date: Mar 2005
Posts: 2,449
Re: Go with TIPs or am I crazy?

Quote:
One idea I find interesting, though, is to set up a private annuity with an elderly parent. Parent gives the kids the lumpsum, and the kids promise to pay the parent a regular monthly or annual payment in perpetuity
I like this idea with vacation homes; or even preferable to reverse mortgages on primary residences if the kids want the house. At least you know where the "borrower" lives.
__________________

__________________
FIRE'd since 2005
tryan 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


Similar Threads
Thread Thread Starter Forum Replies Last Post
Income from TIPS? Gearhead Jim FIRE and Money 6 04-05-2007 03:52 PM
TIPS vs. Vanguard TIPS Fund Cut-Throat FIRE and Money 16 08-15-2006 06:32 AM
TIPS funds: FIREcalc inputs, withdrawal strategy.. Cb FIRE and Money 2 09-28-2004 02:13 PM
SWR, terminal values, TIPS, I-bnds & comm paper sgeeeee FIRE and Money 144 02-25-2004 04:35 PM
TIPS vs. Mutual Fund with TIPS? Telly FIRE and Money 12 07-16-2003 12:21 PM

 

 
All times are GMT -6. The time now is 11:05 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.