Opinions Needed and Welcome!

[pb4uski]

I stand corrected then. That is good information to check out on. Thank you. Of course, it is still
quite possible.

https://www.equities.com/news/what-happens-to-your-annuity-if-your-insurance-company-goes-under

Standard Life's business was purchased by Guggenheim Life & Annuity in February 2011 after Standard Life was placed into receivership by state insurance regulators in December 2008. Information for the Policyholders of Standard Life Insurance Company of Indiana

Shenandoah Life was purchased by another company in May 2012 after being taken over by regulators in February 2009. Virginia Regulators End Shenandoah Life Insurance Co.'s Receivership

So essentially both companies negotiated the rehabilitation process with no losses to policyholders in less than 5 years. What often happens is that companies usually have sufficient assets to pay benefits and claims, but not with the redundancy that regulators require.... initially the company is required by regulators to submit a remediation plan and it is reviewed by regulators and if accepted the regulators will monitor implementation... if things get too bad then the regulators just walk in and demand the keys and takeover operations and then try to find buyers for the business or sell it off piecemeal. If they can't sell it then they run it off. I'm pretty sure that in both cases above that no state guaranty fund monies were needed.

FGIC does not issue annuities.... they write financial guaranty insurance on bonds so I'm not sure why they were mentioned in the article that you linked.

Anything is possible... including a space saucer with little green men landing in my backyard.

 

[Retiredmajor]

Thanks to all for your input and advice. Based on your feedback, I'm taking a 180 degree turn! Now I'm exploring:
- Continue to work part-time for my current employer - I like it and it's good income
- Continue hobby job, which could bring in approx. $30k annually (minimal work)
- Delay SS until we are both FRA 66 and 4 months for me, 66 and 6 months for her
- Spend from our nest egg, as needed, for the next 5 years to live, worse case is drawdown of approx. $300K, more probable is @ $250k.

At FRA, our combined SS + my Pension = $60,000 annually. House will be paid off a few years later and then essentially, this amount will cover all living expenses.

Both Firecalc and I-Orp have me at 100% success for 30 years and our financial advisor, using their retirement income tool has the same result.

Psychologically, I have to "get over" the fact that we'll be drawing down from our nest egg sooner as opposed to later. And, I have the opportunity to work part-time as long as I want or need, so that gives us added flexibility.

Anyway, all the advice is appreciated. I don't know what I don't know and that's why I'm here on this site. Thanks! Major

 

[pb4uski]

....Psychologically, I have to "get over" the fact that we'll be drawing down from our nest egg sooner as opposed to later. And, I have the opportunity to work part-time as long as I want or need, so that gives us added flexibility. ....

Yes, that is hard... but you saved that money "for your retirement" and that is what you are using it on, so what is wrong with that? From a fellow saver, overcome your hoarder instincts.

If a portion of your nestegg is in taxable, there may be an opportunity to do some no or low tax-cost Roth conversions from when you retire to when you start collecting SS.

On your SS decision, you may want to google "SS Analyze" and run your situation though that.... they make a recommendation and you can also look at different scenarios.

 

[haha]

There is a big flaw in your total lifetime numbers you will not have that SS number guaranteed for both of your lifetimes..it will only be that until one of you passes away and then it drop immediately to a survivors benefit.

Do you realize that SS is an annuity and by you both collecting at 62 you are locking the lowest possible benefit for both of your lifetimes? In fact one of you will be left with lowest ss number, whatever survivors benefit your pension offers (if your DW survives which is more likely) and maybe 300 K plus some market gains. I think you have better options then what you considering with that annuity. Don't do anything until you clear understand how these numbers work.

Excellent advice. Various academics who promote annuities also consult for the insurance companies that sell annuities. It can't be an ideal time or maybe even a better than pretty bad time to tie up money in an annuity than when interest rates are very low, and hence you will get a small benefit for each dollar you spend on an annuity, and this will be locked.

Ha