http://www.early-retirement.org/forums/f28/longevity-insurance-65132.htmlNot finding much via search.
I'm "buying" a longevity annuity from the U.S. government by deferring taking SS until I am 70.
Not finding much via search. Any opinions?
Never ever go to a non-fiduciary for money advice. They don't legally work for you. They're nothing more than salesmen pushing the products that make themselves the most commission money (at YOUR expense). Annuities are complex smoke and mirrors. They are usually sold with deceptive talking points like "the market is risky" (just diversify into bonds and it isn't) and they'll say look at the high interest payment rate (not the same as return on investment, especially when your surrender value / death benefit value is getting eaten away by high fees and what not).Thanks for the replies. I have a FA promoting these. I think I'll slow down a bit.
"There comes a time when all optimists should be shot" -- Jára Cimrman, the greatest Czech of all time.+ 1
That's my plan, too.
Of course I'm an optimist
I'm willing to bet that his version of a "longevity annuity" looks a lot like a typical variable annuity that you could get a "guaranteed" income in your retirement years.Thanks for the replies. I have a FA promoting these. I think I'll slow down a bit.
Annuities are dangerous because there are opportunities to hid fees and expenses in their complexity. However, they can be useful in a portfolio if you know exactly what you are buying and don't buy through a salesperson.
I have a deferred annuity with TIAA-CREF and it's currently growing at 4.7%.
Over it's lifetime the return has bee 6% a year. It's not very liquid as it's structured to be turned into a stream of income when I retire, but there is an option to do a "pay out annuity" that pays the account balance out over 10 years.....so I just think of it a a 10 year CD with 4.7% interest. If you are looking for an annuity go directly to an insurance company. TIAA-CREF are a good one to try, although you get the best deal if you already have a retirement plan with them.
That depends. Are we talking about a variable annuity with a GMWB? That's complex with plenty of moving parts.Annuities are dangerous because there are opportunities to hid fees and expenses in their complexity. However, they can be useful in a portfolio if you know exactly what you are buying and don't buy through a salesperson.
That depends. Are we talking about a variable annuity with a GMWB? That's complex with plenty of moving parts. OTOH, a plain SPIA is a simple product that's easy to comparison shop.
I'm a retired actuary (property-casualty, not life insurance)
1+ I don't know much about non-retirement annuities at TIAA, but my "TIAA Traditional" is the only typical annuity I would consider. And in reality, it isn't very typical. I too am credited with 4.6% overall/year and the payout rate, if I took it at 59.5 IIRC, is north of 7%
Yes not surprisingly that's the same quote I got from TIAA for turning my TIAA Traditional accumulation into a single life annuity. TIAA Traditional isn't the most exciting part if my portfolio, but it's a fantastic steady performer with a guaranteed minimum annual growth of 3%
they are such a new product I haven't seen but maybe one or two insurers that offer them
I also don't know how they are priced so it's tough to tell if they are a good "deal" or not. I'll probably end up buying one when the time comes. The last thing I want to do is outlive my $$$$.
If you buy an annuity it puts a price on your head. Something to think about.��