lazysundays
Dryer sheet aficionado
- Joined
- Apr 21, 2014
- Messages
- 25
Ummm thanks. I will read that
I didn't even know age mattered.
Edit- I'm here to see if I can speed that plan up a bit.
I'm not sure why. Most of us younger than 60 have little memory of severe or lasting high inflation, so we do not fear it like older people. But this is just demographics, and attitudes based on recency bias.Lazy. I am not a fan of annuities but you need to do a lot of reading before you take one or reject the concept entirely.
The above link is to Lindauer's first Forbes article in a series of six on annuities. Here are links to the others:Mel Lindauer wrote an excellent series on annuities for Forbes a while back. You can still find it on the web here: Annuities: Good, Bad Or Ugly? - Forbes
Rewahoo- just looked up historical inflation rates. Like I thought- it's all over the place from 1%, 5% 22%! Yikes. Even a 4% inflation on year 2 of retirement leaves the annuity without enough buying power for the year.
And that is the answer I was looking for. Thanks peeps
I just plugged in the information on a couple aged 65 putting in $400,000 and annuitizing at age 70. They received $2556.19/m for their entire life guaranteed. If they live to 100, that's $950,903 in benefits! That's not including X years certain, where if both annuitants die, the beneficiaries receive the remaining amount left for x years which could be as high as $710,000.
One look at the previous posts answers that.So are you on a really good commission plan?
I just plugged in the information on a couple aged 65 putting in $400,000 and annuitizing at age 70. They received $2556.19/m for their entire life guaranteed. If they live to 100, that's $950,903 in benefits! That's not including X years certain, where if both annuitants die, the beneficiaries receive the remaining amount left for x years which could be as high as $710,000.
So are you on a really good commission plan?
One look at the previous posts answers that.
Ummm.... If they can average 6% a year, they should be able to do better than that over 30 years. Personally, I think that averaging 6% a year is far more likely than one or both living to 100. My 2 cents.
That's not to say I am anti annuity. This theoretical couple may have other reasons for buying an annuity. They must do what works for them.
Some people just don't have high risk tolerances. One retired client saw her retirement fund drop from $1m to $500,000 during those times and pulled out of the market and started working again to make up for the loss of income.
I just plugged in the information on a couple aged 65 putting in $400,000 and annuitizing at age 70. They received $2556.19/m for their entire life guaranteed. If they live to 100, that's $950,903 in benefits! That's not including X years certain, where if both annuitants die, the beneficiaries receive the remaining amount left for x years which could be as high as $710,000.
The old traditional annuities. be it SS, or Defined Benefit-Pension, minimizes the risk to the annuity company, hence reduces the return to the purchaser. This is OK and correct because the annuity company must all times be solvent and fulfill their obligation to the annuitant. BUT Suppose you can limit the longterm risk to the annuity company in exchange for higher fees and risk sharing? Could you get a higher rate of return? [rhetorical]
We bought 2012 fixed index, $100,000. Guaranteed ROR $8295/yr ($33,183/yr equivalent to $400,000 initial deposit, $995482 to age 100) , single life, without annuiitization, for life, and any remainder of account balance on death of owner goes to heirs. Guaranteed Income Withdrawal, fixed-Indexed, deferred, single premium.
Look before you show your goodies.
....... I am not sure what became of the children.
Brewer#s="I hope you not only got kissed, but also got dinner and flowers prior to doing this deed deal."
I wish. I think we got a travel mug from the agent. And blank look from the wife-it was her 401k rollover. My only reward is being able to brag about it here on this forum. And maybe I can find another one like it in 6 months.
Oh, brag all you like about this stuff. We will try hard not to laugh.