Interesting Life Cycle Paper

[Ed_The_Gypsy]

With my limited means, I view Social Security as my bond portfolio/annuity.

Also, so many people will find managing a portfolio beyond them, and I wonder myself about a time when my body outlives my brain, or the eyes give out. It doesn't take much--a stroke, major surgery, an auto accident, Parkinson's, macular degeneration....

[cute fuzzy bunny]

Quote:

Originally Posted by Ed_The_Gypsy a time when my body outlives my brain

I think I already crossed that point...

Actually if my body was in better shape it'd be more of a race...

[Sam]

Quote:

Originally Posted by Ed_The_Gypsy ..., I view Social Security as my bond portfolio/annuity. Also, so many people will find managing a portfolio beyond them, and I wonder myself about a time when my body outlives my brain, or the eyes give out. It doesn't take much--a stroke, major surgery, an auto accident, Parkinson's, macular degeneration....

Me too, as far as SS/bond is concerned.

I don't want to think about the time when the body outlives the brain. Also, I don't want to think about the time when the brain outlives the body.

[Ed_The_Gypsy]

My dad had a stroke, Parkinson's (with associated loss of mental acuity) and macular degeneration yet lived to 92. My sister lived nearby and handled his financial affairs, else who knows how he would have managed?

I do not expect to be so fortunate. Then, what if my wife survives me? She is pretty clever but I doubt if she would pay the same attention to the details of our retirement program as I do. I had better leave her with a program in-place.

This is why I don't discard the idea of annuities out-of-hand even though I agree with the criticisms.

[Sam]

Point well taken as far as annuities are concerned.

[walkinwood]

don' try reading it in a reclining chair on a warm saturday afternoon. My notebook computer almost slid off my lap when I dozed off. Interesting concepts though. I'll have to read the rest when I'm a little more energetic.

[ats5g]

Quote:

Originally Posted by Webzter I've been tempted to buy an annuity for retirement to sort of give myself a 'pension'. However, I have some additional upside in that, if I bought an annuity, the entire commission would be paid into my annuity as additional premium. That's the overly conservative side of me that wants to make sure there's always something there... even if the potential upside of not being in that investment is far greater. I think I can sucessfully keep that side silent for a while.

Webzter,

I hope you're talking about buying an immediate annuity at retirement, and not contributing to a variable annuity now. Remember, that you can always annuitize virtually any money that is in a tax deferred account at retirement. College prof's have been doing this since 1918 through TIAA-CREF.

The following is merely anecdotal evidence from talking to a few retirees/soon to be retirees:

If find it interesting that they have/had no problem taking their pension [which is just an annuity], but people who don't have pensions often balk at annuitizing money to create a pension.

- Alec

[Webzter]

Quote:

Originally Posted by ats5g Webzter, I hope you're talking about buying an immediate annuity at retirement, and not contributing to a variable annuity now.

My employer sells equity indexed, immediate, variable and fixed annuities. If we buy through inside sales then we get the commission paid into the annuity.

We also get discounts on whole, term, and LTC insurance.

Any future purchase considerations would have to be timed with a potential departure date . Although, at three and a half years so far, this is tracking to be my longest tenure yet... being in IT though, and at a company that's going through outsourcing, I doubt that I'll make it another 10.