W2R
Moderator Emeritus
want2....First off let me say that I really enjoy conversing with you. I find your posts to be well thought out and objective.
I guess the reason why this topic hits home with me so heavily is that my mother is currently in this boat. I think she has enough money to live the rest of her life on, but each and every day she calls me in a fit, worried that she's gonna run out of money. Her REITS and preferred stocks, which have done quite well for years, have taken a beating lately. Her rental property is half empty and the repairs she had to do last year caused her to have zero earnings last year, causing her to continually take money out of her investment account at the worst time possible. And yet she tells me that 7% guaranteed for life isn't enough income for her. My own mother doesn't see it. Believe me, I understand why people are hesitant, but it's also the reason I think people need to be educated.
I really enjoy conversing with you, too. I don't really have anything against annuities at all, and in fact was planning to get an inflation adjusted immediate lifetime annuity upon retiring, until a few months ago. The only reason I no longer plan to get one, is that I got that windfall and changed my financial plan at that point. I am a firm believer in not having all one's eggs in one basket, and so I would never recommend more than 25%-33% of one's portfolio in an immediate lifetime annuity. I think the question of whether or not to buy such an annuity is really very individual and depends so much on age, risk tolerance, and financial plan. For example, an annuity very well might be right for your mother and allow her to sleep at night, and yet not a good decision at all for one of the Young Dreamers.
I didn't mean to be flip about asking you if you meant annuities... I had forgotten who was on which side of that discussion.
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