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Re: immediate annuity (again)
Old 10-09-2006, 01:31 PM   #161
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Re: immediate annuity (again)

Quote:
Originally Posted by brewer12345
No argument from me on that score. I think the lack of even basic money management education in the US is deplorable. It doesn't even require much math ability. Heck, I have a graduate degree in finance and I am not good for much beyond the most basic of algebra. 99% of managing one's finances can be done with 6th grade math.
Yeah, well during my delusional college days, I decided being a math monir would be cool. Needless to say, 3rd semester calculus did me in.............third derivatives? Give me a break, that was the end of that........

Bottom line, the school systems don't want it in their curriculum, neither do the colleges. And most of the "investment seminar series" are about SELLING, not TELLING.........

Come to think of it, those 3rd derivatives never helped me balance my checkbook..........
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Re: immediate annuity (again)
Old 10-09-2006, 06:27 PM   #162
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Re: immediate annuity (again)

Quote:
Originally Posted by brewer12345
No argument from me on that score. I think the lack of even basic money management education in the US is deplorable. It doesn't even require much math ability. Heck, I have a graduate degree in finance and I am not good for much beyond the most basic of algebra. 99% of managing one's finances can be done with 6th grade math.
I took 22 credits in business and economics at the University of Washington in the 1970s. Now that would have earned me a minor in business. I kept waiting for them to get to "the point" since, as an engineer, I already understood the math.
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Re: immediate annuity (again)
Old 10-09-2006, 10:54 PM   #163
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Re: immediate annuity (again)

I have a 60 yo brother who is in an apartment after settling his divorce and selling the house. All that cash is just sitting in his checking account (I hope), it is not invested (I am sure). I gave him an investment plan a year ago.

He receives a modest disability RR retirement.

After watching him do nothing for about a year I have come to the conclusion that for him buying a well located condo in a good solid building and buying a income annuity with 5% annual increase from Vanguard is one way to prevent him from eating dog food at 85. At least he has an income stream and could do a reverse mortgage on the condo if need be.
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Re: immediate annuity (again)
Old 10-10-2006, 09:19 AM   #164
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Re: immediate annuity (again)

Quote:
Originally Posted by Brat
I have a 60 yo brother who is in an apartment after settling his divorce and selling the house. All that cash is just sitting in his checking account (I hope), it is not invested (I am sure). I gave him an investment plan a year ago.

He receives a modest disability RR retirement.

After watching him do nothing for about a year I have come to the conclusion that for him buying a well located condo in a good solid building and buying a income annuity with 5% annual increase from Vanguard is one way to prevent him from eating dog food at 85. At least he has an income stream and could do a reverse mortgage on the condo if need be.
Or not take on debt, and use the extra cash to help build up a stream of income........ If he has trouble with his budget, why put him in debt for $150,000 or more
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Re: immediate annuity (again)
Old 10-10-2006, 11:06 AM   #165
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Re: immediate annuity (again)

Eh, he has no debt, he has ample cash which is not being invested.

I have been using the Buy vs Rent Dinkytown calculator to determine the sweet spot based on his current rent and investment returns (0). He could purchase that condo for cash and pay the HOA, utilities and taxes out of current income.
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Re: immediate annuity (again)
Old 10-11-2006, 12:23 PM   #166
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Re: immediate annuity (again)

Quote:
Originally Posted by Brat
Eh, he has no debt, he has ample cash which is not being invested.

I have been using the Buy vs Rent Dinkytown calculator to determine the sweet spot based on his current rent and investment returns (0). He could purchase that condo for cash and pay the HOA, utilities and taxes out of current income.
If he can pay cash, then that's different. You did say he wasn't good with money, so maybe tying it up in a somewhat illiquid investment is ok..............

I guess YOU know the situation better than me................
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Re: immediate annuity (again)
Old 10-11-2006, 12:57 PM   #167
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Re: immediate annuity (again)

His idea of an investment is savings bonds and he hyper-vents when I bring up the subject of mutual funds. Even his GF, who he thinks walks on water, can't get him to fill out a Vanguard application. ARRAH!!!

The core area has a forrest of construction cranes - high end condos going up like there is no tomorrow. Hopefully that will bring the price of condos in classic buildings down to 2004 levels by next spring and cash will be king. Maybe I am getting old, but the cost of those puppies makes my eyes cross. With steel and concrete at record highs, and the overlay of planning and building department requirements, I can understand the increases... BUT where are the customers comming from? God willing there will be 'condo investors' who bought in 04 who need to sell or risk forclosure this spring.
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