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Looking For an Immediate Fixed 5 year Annuity
Old 01-29-2014, 10:34 AM   #1
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Looking For an Immediate Fixed 5 year Annuity

We were wondering if we could get some help on suggestions for an immediate fixed five year annuity.

We have to bridge a five year gap, before I start picking SS. We have approx. 100K ready to bridge that gap.

We need to organize ourselves so that we can get a monthly income of somewhere between $1500.00 and $2000.00 a month - for the next five years.

We were wondering if there is some kind of immediate fixed annuity out there, where we can pay the lump some of 100K upfront, for return of a monthly expected payment of that stated above.

Any thoughts or suggestion would be appreciated. Thanks
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Old 01-29-2014, 10:59 AM   #2
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Check out Fidelity's web site. They offer a 5 year immediate annuity.
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Old 01-29-2014, 11:29 AM   #3
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Immediate Annuities - Income Annuity Quote Calculator - ImmediateAnnuities.com

has 5-year or any other flavor.
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Old 01-29-2014, 11:35 AM   #4
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IMHO- You do not need an annuity. You could simply withdraw $1666/mo from your $100k nest egg left in a savings account even assuming NO interest. Better plan with (near) absolute safety could be to leave $20k in a savings account to cover 1st yr's income and ladder $20k each in 1,2,3,&4 yr CD's. Then as each CD matures, put that $$ into savings account to cover next year's 'income'. Even at today's low interest rates, that strategy would likely give you better return than an immediate 5yr annuity. At 1.3% ave interest (laddered CD's bankrate.com), you would get an ave ~$35-40/mo interest over the 5 yrs for ave monthly withdrawal ~$1700/mo. And maybe more as interest rates are likely to rise over next few years.


immediateannuities.com gives on-line competitive annuity quotes. When I input IA for 60yr old male 5yrs period certain, it returns fixed $1691/mo, or only $24/mo more than just regularly withdrawing your $$ from a no-interest savings account.

Good luck, and welcome aboard!
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Old 01-29-2014, 11:35 AM   #5
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Check out the annuities and see what return they offer. But something like an Ally Bank savings account at 0.87% or a CD ladder might be just as good and more flexible.
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Old 01-29-2014, 01:46 PM   #6
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Originally Posted by Animorph View Post
Check out the annuities and see what return they offer. But something like an Ally Bank savings account at 0.87% or a CD ladder might be just as good and more flexible.

GECapitalBank.com offers 0.90%
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Old 01-29-2014, 02:46 PM   #7
Confused about dryer sheets
 
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Originally Posted by Cammot View Post
We have to bridge a five year gap, before I start picking SS. We have approx. 100K ready to bridge that gap.
I just want to THANK YOU all for the various suggestions and ideas. I had not realized that there are several options to look at this from different angles.
Sincerely Appreciated.
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Old 01-31-2014, 10:29 AM   #8
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Quote:
Originally Posted by ERhoosier View Post
IMHO- You do not need an annuity. You could simply withdraw $1666/mo from your $100k nest egg left in a savings account even assuming NO interest. Better plan with (near) absolute safety could be to leave $20k in a savings account to cover 1st yr's income and ladder $20k each in 1,2,3,&4 yr CD's. Then as each CD matures, put that $$ into savings account to cover next year's 'income'. Even at today's low interest rates, that strategy would likely give you better return than an immediate 5yr annuity. At 1.3% ave interest (laddered CD's bankrate.com), you would get an ave ~$35-40/mo interest over the 5 yrs for ave monthly withdrawal ~$1700/mo. And maybe more as interest rates are likely to rise over next few years.


immediateannuities.com gives on-line competitive annuity quotes. When I input IA for 60yr old male 5yrs period certain, it returns fixed $1691/mo, or only $24/mo more than just regularly withdrawing your $$ from a no-interest savings account.

Good luck, and welcome aboard!
A big 'ol +1. CDs would also leave you FDIC insured, which would not be the case with an annuity.
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Old 01-31-2014, 12:24 PM   #9
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+2 I would put the $100k in the highest yield online savings account that you can find, then set up an automatic monthly transfer of $1,700 a month from that online savings account to your spending bank account and you have created an annuity for yourself.
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