jollystomper
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Apr 16, 2012
- Messages
- 6,188
No current plans. Fortunate that Megacorp pension + SS will provide us with a very nice base income.
None planned, so I answered "zero". The exception would be if we approach Otar's "Red Zone" and the combination of mortality credits and a favorable interest rate environment would let us buy a SPIA and maintain a more satisfactory spending level than we could otherwise get.
I'm watching our annuity hurdle, but I don't plan to buy and annuity. Wouldn't consider it at today's horrible payout premium. If we do, it probably won't be until we're 80+ years old, and then a SPIA unless something better comes along.
There have been many dozens of (dire) "bond warning" threads since 2009, just one of the latest http://www.early-retirement.org/for...r-is-not-safe-in-a-low-yield-world-86798.html. The threads detail the concerns, but very few offer real alternatives ** - so what's the upshot? Anyone can just point out risks without solutions. Put all your $ in cash if you can't tolerate any volatility or risk (other than inflation eating you alive) and you can sustain yourself (it takes about twice the nest egg if you want to go all cash instruments).
** the three most often cited:
- cash hasn't kept up so you've given away some returns for about 8 years,
- dividend stock funds are not equivalents at all, essentially a change in AA higher return/risk, and
- SPIA's, though evidently 86% here haven't bought/aren't actually buying them?
You must plan to live a long live (sic). 78 is cutting it close for me. I don't know if I last until mid 80s. If I purchase it now, I have a good chance to use this benefit for 30 years.
When you talk about prospective longevity it's like the market:
Prior performance does not guarantee future returns
True there's no "guarantee," but it's not random either - somewhat correlated and therefore somewhat predictive within family. I've never seen anyone here putting guarantee and longevity in the same sentence. My Mom lasted until 93 and Dad is still living semi-independent at 95. So I can't plan on less...I wish I could.When you talk about prospective longevity it's like the market:
Prior performance does not guarantee future returns
It makes sense in your case. You may have to deal with longevity. Not likely in my case.That's what an SPIA is all about. I'm insuring against the possibility I will live a long life. My mother died at 100 and grandfather at 97.
Gill