 |
|
What percentage of your assets have you annuitized / do you plan to annuitize ?
01-14-2012, 04:25 AM
|
#1
|
|
Thinks s/he gets paid by the post
Join Date: Sep 2010
Location: midwestern city
Posts: 3,511
|
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.
__________________
Very conservative with investments. Not ER'd yet, 48 years old, about 98-99% in cash, CDs, munis, sizeable nest egg, WR < 3.5%, pensions, annuities, no debt, and 47-year planning horizon. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
|
|
|
 |
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 Early-Retirement.org 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!
|
|
01-14-2012, 04:31 AM
|
#2
|
|
Moderator
Join Date: Jan 2008
Location: The northernmost tip of Latin America
Posts: 10,664
|
I don't have an annuity or any plans for one.
__________________
It's not the cards you're dealt in life but what you do with them that matters
|
|
|
|
|
01-14-2012, 04:34 AM
|
#3
|
|
Moderator Emeritus
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 29,459
|
My annuity is Social Security.
__________________
Numbers is hard...
|
|
|
|
|
01-14-2012, 04:36 AM
|
#4
|
|
Thinks s/he gets paid by the post
Join Date: Oct 2002
Location: Chattanooga
Posts: 1,265
|
 Quote:
Originally Posted by REWahoo
My annuity is Social Security.
|
Ditto !
__________________
The only thing a golfer needs is more daylight.
|
|
|
|
|
01-14-2012, 04:39 AM
|
#5
|
|
Administrator
Join Date: Jan 2007
Location: New Orleans
Posts: 24,608
|
Quote:
Originally Posted by REWahoo
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.
__________________
"Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harborless immensities." - - H. Melville, 1851
|
|
|
|
01-14-2012, 05:43 AM
|
#6
|
|
Recycles dryer sheets
Join Date: Sep 2007
Posts: 168
|
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.
|
|
|
|
|
01-14-2012, 05:45 AM
|
#7
|
|
Recycles dryer sheets
Join Date: Sep 2011
Location: Easten Long Island
Posts: 414
|
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.
|
|
|
|
|
01-14-2012, 05:45 AM
|
#8
|
|
Thinks s/he gets paid by the post
Join Date: Feb 2010
Posts: 2,293
|
Quote:
Originally Posted by W2R
+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.
|
|
|
|
|
01-14-2012, 06:00 AM
|
#9
|
|
Thinks s/he gets paid by the post
Join Date: Sep 2010
Location: midwestern city
Posts: 3,511
|
I like this idea and will likely do something along the same lines.
Quote:
Originally Posted by W2R
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.
|
__________________
Very conservative with investments. Not ER'd yet, 48 years old, about 98-99% in cash, CDs, munis, sizeable nest egg, WR < 3.5%, pensions, annuities, no debt, and 47-year planning horizon. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
|
|
|
|
|
01-14-2012, 06:02 AM
|
#10
|
|
Thinks s/he gets paid by the post
Join Date: Sep 2010
Location: midwestern city
Posts: 3,511
|
The problem in my case is that I have spent half my life working abroad, therefore my SS benefits will be greatly reduced.
Quote:
Originally Posted by REWahoo
My annuity is Social Security.
|
__________________
Very conservative with investments. Not ER'd yet, 48 years old, about 98-99% in cash, CDs, munis, sizeable nest egg, WR < 3.5%, pensions, annuities, no debt, and 47-year planning horizon. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
|
|
|
|
|
01-14-2012, 06:04 AM
|
#11
|
|
Thinks s/he gets paid by the post
Join Date: Sep 2010
Location: midwestern city
Posts: 3,511
|
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
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.
|
__________________
Very conservative with investments. Not ER'd yet, 48 years old, about 98-99% in cash, CDs, munis, sizeable nest egg, WR < 3.5%, pensions, annuities, no debt, and 47-year planning horizon. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
|
|
|
|
|
01-14-2012, 06:09 AM
|
#12
|
|
Recycles dryer sheets
Join Date: Jan 2010
Location: dubuque
Posts: 311
|
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.
|
|
|
|
|
01-14-2012, 06:16 AM
|
#13
|
|
Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Baku, Azerbaijan
Posts: 4,200
|
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.
__________________
"Ain't got no money for no old-age pension;
I'm so broke, I can't pay attention!"
"I started out with nothin' and I still got most of it left."
|
|
|
|
|
01-14-2012, 06:17 AM
|
#14
|
|
Moderator
Join Date: Jan 2008
Location: The northernmost tip of Latin America
Posts: 10,664
|
Quote:
Originally Posted by obgyn65
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
Quote:
Originally Posted by W2R
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.
|
__________________
It's not the cards you're dealt in life but what you do with them that matters
|
|
|
|
|
01-14-2012, 06:18 AM
|
#15
|
|
Thinks s/he gets paid by the post
Join Date: Sep 2010
Location: midwestern city
Posts: 3,511
|
Please could you give more specifics ? What were the fees for example, or how old is your SIL ?
Quote:
Originally Posted by frank
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.
|
__________________
Very conservative with investments. Not ER'd yet, 48 years old, about 98-99% in cash, CDs, munis, sizeable nest egg, WR < 3.5%, pensions, annuities, no debt, and 47-year planning horizon. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
|
|
|
|
|
01-14-2012, 06:18 AM
|
#16
|
|
Moderator
Join Date: Jan 2008
Location: The northernmost tip of Latin America
Posts: 10,664
|
Quote:
Originally Posted by Ed_The_Gypsy
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 ... 
__________________
It's not the cards you're dealt in life but what you do with them that matters
|
|
|
|
|
01-14-2012, 06:31 AM
|
#17
|
|
Recycles dryer sheets
Join Date: Jan 2010
Location: dubuque
Posts: 311
|
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.
|
|
|
|
|
01-14-2012, 06:32 AM
|
#18
|
|
Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Baku, Azerbaijan
Posts: 4,200
|
Mike, bring a couple of Polars and we'll talk about it! 
__________________
"Ain't got no money for no old-age pension;
I'm so broke, I can't pay attention!"
"I started out with nothin' and I still got most of it left."
|
|
|
|
|
01-14-2012, 06:39 AM
|
#19
|
|
Moderator
Join Date: Jan 2008
Location: The northernmost tip of Latin America
Posts: 10,664
|
Now we're talkin'
__________________
It's not the cards you're dealt in life but what you do with them that matters
|
|
|
|
|
01-14-2012, 06:45 AM
|
#20
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Feb 2006
Posts: 6,544
|
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.
__________________
Every man is, or hopes to be, an Idler. -- Samuel Johnson
|
|
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
|
| Thread Tools |
Search this Thread |
|
|
|
| Display Modes |
 Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
