This is a continuation of the confessions thread but with a shift on the topic.
As I stated, I have considered a SPIA as a viable tool to build our base income. But with interest rates where they are... I was intending to just wait and buy later when I could get a better deal.
My goal for those VAs at the time was to shield the taxes and grow during accumulation. I hadn't put much more thought into them than that. Frankly, I always assumed we would just cash them out at 59.5 and use the lump for income during FIRE. It was not a strategic tool... just a lump sum of money.
Since I dusted off that contract and read it's payout features... and since the GMWB is competitive with a SPIA, I am wondering if I should use those to create the first rung or two in the ladder.
We own these things, I intend to buy some SPIAs to guarantee income. Should those contracts be part of our strategic plan for generating income? The insurance company has a decent rating, the amount would be within the State Guaranty limits. The fees are low.
If I took a variable payout option.... our minimum would seem to be the same as a SPIA today. But I would get some market upside during years the market does well.
What do you think?