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Late retirement annuity?
Old 01-08-2017, 04:15 PM   #61
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Late retirement annuity?

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Originally Posted by Danmar View Post
Understand why people don't like annuities. Loss of control and poor pricing. Pensions (just an annuity) are certainly loved though. Thing is, annuities are the perfect product for many retirees. Better to buy them later, and hopefully interest rates rise. Can't argue with the benefits for many people. Too bad banks don't sell them.
One advantage of annuities is that once the money is annuitized, the person can't do something stupid with it - like give it to a new version of Bernie Madoff, speculate on Can't Lose stocks, or bail out ungrateful children from their debts and other financial problems.
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Old 01-08-2017, 04:55 PM   #62
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One advantage of annuities is that once the money is annuitized, the person can't do something stupid with it - like give it a new version of Bernie Madoff, speculate on Can't Lose stocks, or bail out ungrateful children from their debts and other financial problems.
Right. Also really simplifies things once you become a little less "sharp". Particularly good if you have no desire for a legacy. If I didnt already have a generous pension, I might consider it. As it is, I intend to "disintermediate" myself from my alimony obligations by buying my first wife an annuity.
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Old 01-08-2017, 05:05 PM   #63
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Wouldn't touch non-cola as well. Will matter if you surprise yourself and make it 110+. I'm already grumpy, don't need to be poor and unhappy too.
Colas are way too expensive for what you get. It's better to start out small and add more annuities over time to make up for the shrinking real income.
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Old 01-08-2017, 06:05 PM   #64
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Colas are way too expensive for what you get. It's better to start out small and add more annuities over time to make up for the shrinking real income.
Delayed SS can be the COLAed annuity and then a QLAC or DIA could be purchased at retirement to start at say age 86 so you have a defined maximum of 20 years to make withdrawals from the rest of your investments.
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Old 01-09-2017, 03:17 AM   #65
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Originally Posted by Danmar View Post
Understand why people don't like annuities. Loss of control and poor pricing. Pensions (just an annuity) are certainly loved though. Thing is, annuities are the perfect product for many retirees. Better to buy them later, and hopefully interest rates rise before then. Can't argue with the benefits for many people. Too bad banks don't sell them.
If banks sold them, could be another "Big Short" movie 10 years from now...
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Old 01-09-2017, 08:08 AM   #66
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If banks sold them, could be another "Big Short" movie 10 years from now...
Good point. I was thinking about the Canadian banks. Pricing and access would likely improve.
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