nun
Thinks s/he gets paid by the post
- Joined
- Feb 17, 2006
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- 4,872
BobbinChina said:I guess there are a lot of teachers in this forum? Isn't that how you get access to TIAA funds? So for those who don't have that access, like me, I think the difference between just putting the money aside yourself or buying this longevity insurance might just revolve around the Treasury dept. ruling that I discussed in a previous post.
Many public employees, university workers and researchers have access to TIAA retirement products.
TIAA traditional is just a guaranteed income product. Because of TIAA's insurance background and very conservative approach to investing it's always been one of the core investments - it's now supplemented with the usual range of mutual funds and target date funds. I've put money into it over 25 years and it's about 10% of my portfolio. You can buy similar things from lots of insurance companies. IMHO the growing popularity of longevity insurance highlights the errors in conventional AA advice over recent decades. If income products had been part of people's AA right from the start they wouldn't be worried about running out of money in retirement. If you have SS and some guaranteed supplement like an annuity you don't have to worry about running out of money. The problem I have with true longevity insurance is you don't get any income until the start date of the contract. Say that's 85, what happens if you run out of money at 80?
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