Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 10-12-2013, 07:46 AM   #81
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
Join Date: Mar 2007
Posts: 8,490
Originally Posted by LitGal View Post
......... It would cost her 7% to change her mind and get out of this product..........
I wonder if by some coincidence the agent makes a 7% commission?

Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-12-2013, 08:28 AM   #82
Thinks s/he gets paid by the post
nun's Avatar
Join Date: Feb 2006
Posts: 4,331
Originally Posted by Huston55 View Post
Nun-As I recall, your AA and investing approach are relatively conservative, which, I presume, is the reason you own annuities. Without revealing any private details, I'd like to know what annuities you purchased, why you purchased them, if they're performing the function intended, and if you'd make the same decision in today's low rate environment. Thx.
I'd say I'm pretty middle of the road in my AA it being 50/50 overall. But I have arrange things so that my basic income can come from pretty stable sources like rent, SS, pension and annuities. I'm very glad I bought my TIAA-Traditional deferred annuity years ago as it just keeps plugging away giving me good tax deferred interest and it's part of my income foundation.

As I have retirement money with TIAA-CREF it's by default invested in annuities. However, the TIAA-CREF variable annuities in a 401a or 403b account function just like mutual funds with ERs around 0.4% or 0.5%. There are no other fees or withdrawal restrictions and they can be rolled over into IRAs. TIAA-CREF does encourage you to turn the VA accumulation into a one or two life annuity at retirement to provide income for life, but you can ignore that and just live of the gains etc if you want, or roll it over to a Vanguard IRA to save money on fees.

As well as the VAs, TIAA offers a deferred annuity called TIAA-Traditional. I bought this 27 years ago and have put money into it as part of my fixed income allocation, today it's only 5% of my portfolio. It has access restrictions and if you want to take money out you either do it through a life time annuity or in equal amounts over 10 years. But you do get good interest rates for giving up control; 3% minimum, but today it's paying 4.416%. Actually money inside the annuity gets different interest rates depending on when it was contributed, so today's contributions get 4.416%, but contributions made earlier get higher rates. Costs etc are taken out before the interest rate is declared, so it basically acts like a tax deferred high interest savings account or CD, but you can't get at your money. At retirement you turn it into an income stream or it pays out over 10 years. I got a quote for a single life fixed annuity for a 55 year old male and the payout rate was 7% which is about 1% higher than other quotes I've seen.

Because I have access to TIAA-CREF's annuities and they seem to give far better deals than most annuities I would not buy one from another company. I will probably leave my TIAA-Traditional to compound after I retire and use it as longevity insurance.

"The needs of the many outweigh the needs of the few, or the one." - Spock
Retired Mar 2014 at age 52
Target AA: 70% equity funds / 28% TIAA-Traditional/ 2% cash
Target WR: 0.0%,
Income from pension, rent, and eventually SS
nun is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


All times are GMT -6. The time now is 04:28 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.