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What percentage of your assets have you annuitized / do you plan to annuitize ?
Old 01-14-2012, 05:25 AM   #1
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What percentage of your assets have you annuitized / do you plan to annuitize ?

I was reading the key findings of this article last night. http://www.ebri.org/pdf/briefspdf/EB..._Annuities.pdf

Would be interested to know what percentage of your assets have you annuitized / do you plan to annuitize. Sorry, I don't know how to create a survey on this website.
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Old 01-14-2012, 05:31 AM   #2
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I don't have an annuity or any plans for one.
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Old 01-14-2012, 05:34 AM   #3
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My annuity is Social Security.
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Old 01-14-2012, 05:36 AM   #4
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My annuity is Social Security.

Ditto !
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Old 01-14-2012, 05:39 AM   #5
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My annuity is Social Security.
+1 (Or, at least it will be once I have claimed SS). Plus, I have a very small pension. I have no plans to buy any further annuity for now.

Perhaps when I am in my 80's I might buy an immediate lifetime annuity with less than 1/4 of my portfolio. The objective of this would be to simplify the income needed for my most basic expenses, in case I live to a very very old age and in case I become less mentally competent. At that age, the cost should be much lower and maybe interest rates will have rebounded by then.
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Old 01-14-2012, 06:43 AM   #6
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Social Security is my only annuity. I don't particularly trust the insurance companies to give them that much money. Besides I'd rather get more money by doing my self and leaving an estate than getting less money and having no estate to leave.
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Old 01-14-2012, 06:45 AM   #7
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When dictated by my spending requirements, I plan to annuitize the portion of my portfolio that amounts to 1 / (100 - age). For example, at age 70 I'd be comfortable cashing in 3.33% of my investments.
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Old 01-14-2012, 06:45 AM   #8
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+1 (Or, at least it will be once I have claimed SS). Plus, I have a very small pension. I have no plans to buy any further annuity for now.

Perhaps when I am in my 80's I might buy an immediate lifetime annuity with less than 1/4 of my portfolio. The objective of this would be to simplify the income needed for my most basic expenses, in case I live to a very very old age and in case I become less mentally competent. At that age, the cost should be much lower and maybe interest rates will have rebounded by then.
That's exactly my situation and plan.
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Old 01-14-2012, 07:00 AM   #9
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I like this idea and will likely do something along the same lines.
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Originally Posted by W2R View Post
The objective of this would be to simplify the income needed for my most basic expenses, in case I live to a very very old age and in case I become less mentally competent.
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Old 01-14-2012, 07:02 AM   #10
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The problem in my case is that I have spent half my life working abroad, therefore my SS benefits will be greatly reduced.
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My annuity is Social Security.
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Old 01-14-2012, 07:04 AM   #11
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I like this idea too. Thanks for sharing.

This is why I keep coming back to this website. I have been learning so much from everyone.

Thank you.


Quote:
Originally Posted by justplainbll View Post
When my dictated by my spending requirements, I plan to annuitize the portion of my portfolio that amounts to 1 / (100 - age). For example, at age 70 I'd be comfortable cashing in 3.33% of my investments.
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Old 01-14-2012, 07:09 AM   #12
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my sil took out a 15 year immediate annuity. I looked at the parameters of the annuity and penciled it out, when it was all said and done she was getting 0.8 percent on her money. I would think even in todays economy you could do better than that. annuities are only good for the insurance companies.
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Old 01-14-2012, 07:16 AM   #13
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My plans are about the same as most of the above.

Be aware that the IRS imposes a MWR (minimum withdrawal rate) after a certain age (72?) from traditional IRAs and 401Ks according to the table used for 72t withdrawals. Every year thereafter, the MWR is 1/current life expectancy in years and changes every year. Vanguard will automatically calculate this at the end of every year and send you a check. Basically, you are forced to annuitize your IRA.

If I live so long, I expect to get a larger payout than I need after a while, so it will have to go into a holding account of some kind.
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Old 01-14-2012, 07:17 AM   #14
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The problem in my case is that I have spent half my life working abroad, therefore my SS benefits will be greatly reduced.
SS eligibility requires a minimum of 10 years (40 credits) and I have 14, as I spent almost all of my time working abroad. Even more extreme, 7 were earned while I was in high school / college / grad school, so the income levels are low, as will be my SS pension. For me this is not a problem because I had opportunities to save, and like you, if I want an annuity I can buy one. While I have no plans to do so, this is a good idea

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Perhaps when I am in my 80's I might buy an immediate lifetime annuity with less than 1/4 of my portfolio. The objective of this would be to simplify the income needed for my most basic expenses, in case I live to a very very old age and in case I become less mentally competent. At that age, the cost should be much lower and maybe interest rates will have rebounded by then.
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Old 01-14-2012, 07:18 AM   #15
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Please could you give more specifics ? What were the fees for example, or how old is your SIL ?
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my sil took out a 15 year immediate annuity. I looked at the parameters of the annuity and penciled it out, when it was all said and done she was getting 0.8 percent on her money. I would think even in todays economy you could do better than that. annuities are only good for the insurance companies.
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Old 01-14-2012, 07:18 AM   #16
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If I live so long, I expect to get a larger payout than I need after a while, so it will have to go into a holding account of some kind.
Gypsy Ed, feel free to give me a call - I'll help you spend it ...
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Old 01-14-2012, 07:31 AM   #17
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I really didn't consider any fees. she put in a certain amount and got so many dollars a month for 15 years. when you figured the total return for the annuity it turned out at .08 percent. it did have the death benefit, but other than that it was pretty straight forward. my sil is 65.
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Old 01-14-2012, 07:32 AM   #18
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Mike, bring a couple of Polars and we'll talk about it!
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Old 01-14-2012, 07:39 AM   #19
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Mike, bring a couple of Polars and we'll talk about it!
Now we're talkin'

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Old 01-14-2012, 07:45 AM   #20
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My Federal Pension is my annuity. It accounts for about 50% of our planned ER spending. We discount DWs SS, viewing it as an offset for higher taxes as we get toward RMDs. But it will also be a stable annuity like source of income and definitely a source of security. DW and I could get by OK on my pension and her SS. If I had no pension I would probably annuitize about 1/3 of my portfolio for peace of mind.
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