Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 09-21-2010, 03:59 PM   #61
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by W2R View Post
Before interest rates dropped quite so much I was thinking of buying the annuity with part of my TSP. However, all the input from my co-workers, plus input from our agency sponsored retirement training seminars, told me to avoid the annuity. I don't recall anybody from work who planned to take the annuity option, whether FERS or CSRS.
Agreed. In some situations buying an SPIA for additional retirement income you can't outlive makes sense. It's just a horrible time to buy one in today's low interest rate environment; the amount you have to pay for one dollar of monthly income has probably never been higher.
__________________

__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 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 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!

Old 09-21-2010, 04:08 PM   #62
Thinks s/he gets paid by the post
 
Join Date: Oct 2006
Posts: 3,815
I happened to read the Vanguard written testimony just out of curiosity. I discovered that they are now offering a link to an online annuity quoting service. You have to register to get in, but you do not need to provide real name or email to get quotes. I expect this means that Vanguard no longer offers annuities through AIG, but I didn't look hard to be sure of that.

At any rate, it is one more source of quotes.
__________________

__________________
Independent is offline   Reply With Quote
Old 09-21-2010, 05:03 PM   #63
Moderator Emeritus
 
Join Date: May 2007
Posts: 11,037
Quote:
Originally Posted by Independent View Post
I happened to read the Vanguard written testimony just out of curiosity. I discovered that they are now offering a link to an online annuity quoting service. You have to register to get in, but you do not need to provide real name or email to get quotes. I expect this means that Vanguard no longer offers annuities through AIG, but I didn't look hard to be sure of that.

At any rate, it is one more source of quotes.
They still do offer annuities through AIG/American General. But it's now only one of their 5 or 6 offerings.
__________________
FIREd is offline   Reply With Quote
Old 09-21-2010, 05:42 PM   #64
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Quote:
Originally Posted by ziggy29 View Post
My concern would be a form of "adverse selection" where someone is more likely to take the annuity option when their parents and grandparents all lived to be at least (say) 85, and their payout is based on average life expectancy. In other words, I would expect an annuity to be more attractive to folks with a family history of longevity, and if the payout is based on overall life expectancy this could be a bad deal for the taxpayers.
I think insurance companies are pretty familiar with adverse selection in the longevity tables:
The high cost of a no-fee, no-commission Single Premium Immediate Annuity (SPIA).

IIRC Vanguard used to provide online annuity quotes but stopped doing so when AIG started spiraling down the drain... 2007? 2008?
__________________

__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Reply


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


Similar Threads
Thread Thread Starter Forum Replies Last Post
Veterans Administration Hospitals two4theroad Health and Early Retirement 2 02-06-2008 06:22 PM

 

 
All times are GMT -6. The time now is 05:31 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.