Vanguard SPIA's....IRR=?

[73ss454]

Quote:

Originally Posted by RockOn You could lock in 6% for 33 years, as in my example, your CD might only get you 4% the next time it rolls. That is the point.

Maybe, but as we've discussed may time here that you can't time the market. I can remember a time when we were getting 16% on CD's and if that was the case I'd be locked into 6% for 33years. Remember one other thing, I'd still have my money to leave for my kids. You wouldn't have that option.

Not for me, no way, no how.

[mathjak107]

n;652214]You could lock in 6% for 33 years (as in my example), your CD might only get you 4% the next time it rolls. The point is you have interest rate risk, the annuity doesn't have that.[/quote]

the immeadiate annuties pay more than the current rates you can get in a cd and lock you in forever if you want. if you could get a cd to pay you 6% forever then you got it made. however if the cd was paying 6 the annuity may pay 8 at that time. generally the annuity based on your age will always be higher.

the big pile of dead people enable them to do something your cd,s or bonds cant.


some people are interested in getting the biggest monthly return they can get and spend more then they otherwise might instead of passing money to heirs.

its not always about dying with the biggest pile, for some its about spending more and enjoying more things while they are alive and healthy then they otherwise might do on their own worrying about running out of money if they live to long.


for some like my ex wife they will need every penny they can muster each month to pay bills, there is no need for worrying about passing something to our kids, ill take care of that. for her an imeadiate annuity is perfect as she will have more to live on forever then any laddered cd's or bonds may afford her . ruling out default of the issuer of course

[73ss454]

Well, that's what make the world go around. If you think it's a good deal then it's a good deal for you. I just don't see it, and I guess I never will.

After being sold some Whole life policies and have all 3 go to class action I don't have a love to ins. companies. The only good thing is I was awarded good payouts for all the lies I was told by the salespeople. Even going via Vanguard you still have to deal with and ins. co. which I choose not to do.

[chinaco]

I would only consider a SPIA to develop some base income level. I would not put all assets in it.

And at that.... now that VG has that endowment fund, I am rethinking our options.