Just thought I'd communicate a investment product being pushed by the megaCorp. They were bragging that this is first of it's kind, a do-it-yourself annuity through people you can trust. You know, those kind, considerate, helpful people at megaCorp. Actually, the proceeds will help fund the overlord's new corporate headquarters complete with pool and sauna for the overstressed management.
I call it the Lifetime Income Strategy Plan or Lisp for short. Don't worry, it get's better.
This year they decided to change our administrator from VG; if you don't roll/map your existing money into one or more of 5 "new" funds; S&P index, Market Bond, International, small cap or company stock, you're VG balance will be automatically transferred into the LISP. why? You're just a inquisitive little bugger, aren't you? Well, you're about to find out.
Being the reasonably prudent investor I am, contrarian and skeptic, I ran their calculator and here's the nifty return promised me. If I rolled my $380k into this immediately, at 60, (I'm early fifties), I'd get a whopping $1399/mo for the rest of my not-so-special life. Yes, thats US dollars and NOT COLA'd. A joint annuity was $1200/mo (spouse same age). The fees were a special 1.71% for this awesome, one-of-a-kind product. According to my IRR calc, my return would be negative until my IRS anticipated death age at which point the return would be approximately 0.2%. If I lived to 95, my return was about 2.5%.
You know, at some point, somebody is gonna call these people out. Maybe, it'll be me, eh? If you are FIRE'd, you have just one more reason to be thankful this holiday season.
Cheers.
I call it the Lifetime Income Strategy Plan or Lisp for short. Don't worry, it get's better.
This year they decided to change our administrator from VG; if you don't roll/map your existing money into one or more of 5 "new" funds; S&P index, Market Bond, International, small cap or company stock, you're VG balance will be automatically transferred into the LISP. why? You're just a inquisitive little bugger, aren't you? Well, you're about to find out.
Being the reasonably prudent investor I am, contrarian and skeptic, I ran their calculator and here's the nifty return promised me. If I rolled my $380k into this immediately, at 60, (I'm early fifties), I'd get a whopping $1399/mo for the rest of my not-so-special life. Yes, thats US dollars and NOT COLA'd. A joint annuity was $1200/mo (spouse same age). The fees were a special 1.71% for this awesome, one-of-a-kind product. According to my IRR calc, my return would be negative until my IRS anticipated death age at which point the return would be approximately 0.2%. If I lived to 95, my return was about 2.5%.
You know, at some point, somebody is gonna call these people out. Maybe, it'll be me, eh? If you are FIRE'd, you have just one more reason to be thankful this holiday season.
Cheers.