Kronk
Full time employment: Posting here.
My mother has a financial planner; I'm reviewing some of his recommendations now. One of which is longevity insurance.
$30,000 bought at age 65.
At age 80, income is $524/month NOT inflation adjusted
OR
At age 85, income is $771/month NOT inflation adjusted
Both of these numbers have a "10 year guarantee" if she dies during payout. If she dies prior to the start of the annuitized stream, the $30k is returned at 3% per year compounding.
$30k is not a huge part of her portfolio, and the vast majority of her income needs will be met between pension and SS, so she isn't looking at much of a yearly drawdown of her portfolio. I'm leaning towards advising her to do this (the age 80 version). This might not be the greatest "investment", but as an insurance product that adds some money down the line it probably suits her needs.
Anyone have any thoughts on the matter?
$30,000 bought at age 65.
At age 80, income is $524/month NOT inflation adjusted
OR
At age 85, income is $771/month NOT inflation adjusted
Both of these numbers have a "10 year guarantee" if she dies during payout. If she dies prior to the start of the annuitized stream, the $30k is returned at 3% per year compounding.
$30k is not a huge part of her portfolio, and the vast majority of her income needs will be met between pension and SS, so she isn't looking at much of a yearly drawdown of her portfolio. I'm leaning towards advising her to do this (the age 80 version). This might not be the greatest "investment", but as an insurance product that adds some money down the line it probably suits her needs.
Anyone have any thoughts on the matter?