Late retirement annuity?

[Gill]

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[dallas27]

Thank you for educating on the concept of valuing a perpetuity. I'll file that under useless information and not at all relevant to this discussion. Why is it that discussions of immediate annuities always elicit such responses?
Bruce

Since you got a bit affected by me referencing the relevant finance theory from the sophomore text book, probably best we don't continue commenting on each others posts from now on. Good day and best of luck to you.

 

[W2R]

Please --- both of you might want to remember the "ignore" feature. It is very useful for everyone.

1. Click on User CP on the horizontal bar above.
2. Then, on the list on the left hand side, under Settings and Options, click on Edit Ignore List.
3. Type the username of the person you wish to ignore, under Add a Member to your List.
4. Hit OK.

Members can't put mods/admins on their ignore list and vice versa.

 

[Gill]

Please --- both of you might want to remember the "ignore" feature.

Thanks for the suggestion, but it is more entertaining to read his posts.
Bruce

 

[W2R]

Thanks for the suggestion, but it is more entertaining to read his posts.
Bruce

Up to you (as things stand). The "ignore" feature is a handy one that many of our members use, and we like to remind everyone about it now and then by posting a public reminder about it. It has saved many a member from future headaches and battles.

Everyone should also be careful to follow the Community Rules and re-read them now and then.

 

[harley]

Up to you (as things stand).

Lol! Nicely done.

 

[Chuckanut]

May I humbly suggest that people avoid the use of the word 'you'? As in "You don't understand basic supply/demand as taught in Econ 101".

Far better to say "My Econ 101 professor was very clear that prices are set by supply and demand, not cost of production".

'You' should be left to compliments or nice questions " You have demonstrated a good head for investments, so can you give me your opinion on beaver cheese futures this year?"

 

[2017ish]

May I humbly suggest that people avoid the use of the word 'you'? As in "You don't understand basic supply/demand as taught in Econ 101".

Far better to say "My Econ 101 professor was very clear that prices are set by supply and demand, not cost of production".

'You' should be left to compliments or nice questions " You have demonstrated a good head for investments, so can you give me your opinion on beaver cheese futures this year?"

Are You kidding?

[joking aside, good point. ]

 

[nun]

The best late retirement annuity you can buy is to delay social security. I'd do that at 66 rather than planning to buy an SPIA later in life.

However, I'm not entirely sold on the delaying SS idea as if you take SS at age 62, delaying to age 70 will only net you more money if you live past 83 and if you were to invest the SS from ages 62 to 70 and get 4% a year and then start spending enough from the accumulation to equal the delayed SS payment, then the beak even point would be 91. So for a single person it isn't a slam dunk at all.....for couples it's more complex.

 

[Danmar]

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.

 

[Chuckanut]

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.

 

[Danmar]

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.

 

[audreyh1]

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.

 

[nun]

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.

 

[brucethebroker]

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...

 

[Danmar]

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.