Portfolio Growth Harvesting

[W2R]

REWahoo, can you get enough money for "sleep at night" purposes, if you spend around 30% or less on your SPIA?

If so, I think you should go for it and buy two, as you mentioned; 15% for one, and 15% for the other.

If not, well, I hesitate to advise you, or anyone else, to spend more than 30% of their nestegg on an annuity at today's low rates.

I may buy an annuity when I get older, but I'll probably wait until I am a bit older than you are at present. Maybe? When I feel like I am on the final decline, and may soon be incapable of doing anything more with my portfolio, I'll get that annuity. I'll have all my dividends and annuity proceeds sent directly to the bank, stop rebalancing, and make sure my will is in order.

 

[Lsbcal]

Everyone has different risk tolerances and finances. We don't have the full picture so how can anyone but ReWahoo do the analysis?

For us, I run VPW and look a depression period (1929 and forward) plus an inflation period (1966 and forward). What does the spending and portfolio balance look like in those cases is the question. I'm 69 so looking at the next 10 years in those sequences is pretty important to me. Net result, I can convince myself that we will be OK. No annuities for us and DS gets his inheritance.

 

[capjak]

Light bulb moment! This also allows purchase from two different insurers to spread the (hopefully slight) risk.

Thanks for the suggestion.

Another one I forgot to mention is that since you are looking at a 50% survivorship, you may be better off purchasing a single life 20 year guaranteed period for you or your wife for 1/2 (90,000) and than 20 year guaranteed single life (90,000) for the other. I think the upfront fee may be less and you will guarantee 100% payout till you are 90 years old or your heirs, and still protect the 50% survivor payout

 

[bmcgonig]

I think we addressed this scenario in a previous thread. The hurdle or zone concept would work in a 2008/9 style downturn.

http://www.early-retirement.org/for...different-from-bonds-78299-4.html#post1625946

Good memory!

 

[REWahoo]

I wanted to circle back and tie up the loose ends on this thread.

I've always told myself that at some point, always "when I get older", I might consider (can't believe I'm actually saying this) buying a SPIA. Well, I'm older (71) and I'm considering it.

I decided to stay the course. I may revisit the idea of a SPIA at some point, but for now I think I'm going to continue to dance with the AA that brung me.

Thanks for all the input.

 

[capjak]

I wanted to circle back and tie up the loose ends on this thread.



I decided to stay the course. I may revisit the idea of a SPIA at some point, but for now I think I'm going to continue to dance with the AA that brung me.

Thanks for all the input.

There is no Right or Wrong answer, other than what you decide of course.

GodSpeed!

 

[ejman]

If I recall correctly the OP has a significant portion of assets in Wellesley ( As Do I to the tune of about 34% of liquid NW). Right or wrong I look at the fund history going back to 1970 and I see that the single worst year was 2008 with a drop of 9.84%. The worst multiple year performance was 1973-1974 with a combined drop of 9.92%. Both of these bad periods were sandwiched by good years that largely erased the bad performance. https://finance.yahoo.com/quote/vwinx/performance?ltr=1

Does this guarantee future performance? No, of course not - all it shows to my mind is that a balanced fund approach has as good a chance as anything else on this earth to recover from an extreme inflationary period along with recession (1973-1974) and from what looked like Armageddon at the time (2008). Who's to say an insurance company would actually be able to make those annuity payments if the SHTF?