Join Early Retirement Today
View Poll Results: How much of your income are you expecting to come from annuities YOU purchase(d)?
over 50% 2 1.45%
30-49% 3 2.17%
10-29% 10 7.25%
less than 10% 7 5.07%
None planned (barring Armageddon) 116 84.06%
Voters: 138. You may not vote on this poll

Reply
 
Thread Tools Search this Thread Display Modes
Old 05-17-2017, 03:49 PM   #21
Thinks s/he gets paid by the post
2017ish's Avatar
 
Join Date: Apr 2012
Location: Nashville
Posts: 2,136
Quote:
Originally Posted by Gill View Post
I may win the prize. Have purchased 12 annuities, two of them deferred to age 85, at a cost of over $1.1 million, currently distributing $104K and will total $138K at age 85.
Out of curiosity, any of them COLA'd (or equivalent)? Or, perhaps, the deferreds serve that purpose? Spread among variety of companies?
__________________
OMY * 3 2ish Done 7.28.17
2017ish is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-17-2017, 04:20 PM   #22
Recycles dryer sheets
 
Join Date: Jun 2010
Location: Southwest Florida
Posts: 450
No, none of them are COLA'd. Yes, they are spread among ten insurance companies. I always defer my initial payment one year which is the maximum allowed. I view the equities in my portfolio as well as a chunk of TIPS and I-Bonds as my inflation hedge.
Gill
Gill is offline   Reply With Quote
Old 05-18-2017, 04:57 AM   #23
Thinks s/he gets paid by the post
DrRoy's Avatar
 
Join Date: Dec 2015
Location: Michigan
Posts: 3,659
No plans. The fees drive me crazy.
__________________
"The mountains are calling, and I must go." John Muir
DrRoy is offline   Reply With Quote
Old 05-18-2017, 05:39 AM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 8,775
Undecided. If I make it into my 70's, I will evaluate at that time. I've always thought it would be a good idea to have some sort of guaranteed income stream in addition to SS to take care of basic living expenses late in life. Worried about the old mind going haywire at some point. But I do have a nephew who is very mature(40 now) and conservative that I can probably turn the keys over to when the time comes.
__________________
Retired 3/31/2007@52
Investing style: Full time wuss.
Dawg52 is offline   Reply With Quote
Old 05-18-2017, 06:07 AM   #25
gone traveling
 
Join Date: Apr 2011
Posts: 3,375
Don't enter my mind.
gerntz is offline   Reply With Quote
Old 05-18-2017, 06:21 AM   #26
Recycles dryer sheets
 
Join Date: Jun 2010
Location: Southwest Florida
Posts: 450
Quote:
Originally Posted by DrRoy View Post
No plans. The fees drive me crazy.


Would it surprise you to know there are no fees? What you see is what you get.
Gill
Gill is offline   Reply With Quote
Old 05-18-2017, 07:15 AM   #27
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 48,179
Quote:
Originally Posted by Gill View Post
Would it surprise you to know there are no fees? What you see is what you get.
Gill
You haven't looked closely enough.

Please post links to these "no fee" annuity contracts so we can see the entire agreement, including all the fine print.

No insurance company is going to provide anyone an annuity unless they stand to make a profit from the transaction. They may obscure the fees by using different terminology or mask the costs with complex language and convoluted terms, but the fees are in there.
__________________
Numbers is hard

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 05-18-2017, 07:27 AM   #28
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 11,368
Undecided, like some of the other respondents here. If interest rates get high, and my health remains good, there's a good chance I'll annuitize some or a lot of my portfolio. Too many variables and probably too far in the future for me to give an answer now.


A lot of people talk about not getting an SPIA until they are much older. Why is that, if you are already retired? If interest rates are high, wouldn't it make sense to lock in at that point, even if you are 55 instead of 75? Is there a concern with predicting the longevity of the insurer, or other reasons?
RunningBum is offline   Reply With Quote
Old 05-18-2017, 07:29 AM   #29
Thinks s/he gets paid by the post
Fedup's Avatar
 
Join Date: Mar 2014
Location: Southern Cal
Posts: 4,032
I think it depends on your ability to manage investments. I know I would buy some for my husband because he doesn't care to invest.
Fedup is offline   Reply With Quote
Old 05-18-2017, 07:36 AM   #30
Recycles dryer sheets
 
Join Date: Jan 2017
Posts: 54
[QUOTE=Midpack;1882297]Seems timely with some of the fear of bonds threads circulating again...

I'm not sure I've seen the "fear" threads you mention. Can you post some examples to help me understand the concerns better...
MrFlish is offline   Reply With Quote
Old 05-18-2017, 08:13 AM   #31
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 11,368
Quote:
Originally Posted by RunningBum View Post
...

A lot of people talk about not getting an SPIA until they are much older. Why is that, if you are already retired? If interest rates are high, wouldn't it make sense to lock in at that point, even if you are 55 instead of 75? Is there a concern with predicting the longevity of the insurer, or other reasons?
I guess this is a pretty good answer to my question.
https://whitecoatinvestor.com/spia-the-good-annuity/

There is a chart that shows, if you outlive your life expectancy, (the main reason for getting an annuity) the returns get better if you wait to invest as them as you get older.

The article also says that some (like Swedroe) suggests 70 or later is the best time to buy, but the author says there's nothing wrong with buying earlier as needed, but probably not all at once. And diversify among multiple highly rated insurers.

Disagreement with this? As I at least implied in my first post, I'm not looking at annuities now (age 55) with rates so low, but if they do rise enough, is there any reason not to start buying rather than waiting until 70 or later?
RunningBum is offline   Reply With Quote
Old 05-18-2017, 08:45 AM   #32
Recycles dryer sheets
 
Join Date: Jun 2010
Location: Southwest Florida
Posts: 450
Quote:
Originally Posted by REWahoo View Post
You haven't looked closely enough.

Please post links to these "no fee" annuity contracts so we can see the entire agreement, including all the fine print.

No insurance company is going to provide anyone an annuity unless they stand to make a profit from the transaction. They may obscure the fees by using different terminology or mask the costs with complex language and convoluted terms, but the fees are in there.
I don't think you understand immediate annuities. Of course the insurance company expects to make a profit. However, when you are quoted a $10,000 annual distribution on a $100,000 investment that is what you get. There are no fees of any sort involved. Naturally, in computing the payout the company seeks to make a profit.
Gill
Gill is offline   Reply With Quote
Old 05-18-2017, 08:53 AM   #33
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 48,179
Quote:
Originally Posted by Gill View Post
Naturally, in computing the payout the company seeks to make a profit.
Gill
IOW, the fees are there, hidden where you can't see them.
__________________
Numbers is hard

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 05-18-2017, 08:55 AM   #34
Recycles dryer sheets
 
Join Date: Jun 2010
Location: Southwest Florida
Posts: 450
Quote:
Originally Posted by REWahoo View Post
IOW, the fees are there, hidden where you can't see them.
Of course they are. Insurance companies are not charities. The point is when you get a quote on an SPIA you can take it or leave it. There is no mystery involved or any later surprise fees. If they say they will pay you $10,000 a year for life, that's what you will get.
Gill
Gill is offline   Reply With Quote
Old 05-18-2017, 09:01 AM   #35
Thinks s/he gets paid by the post
2017ish's Avatar
 
Join Date: Apr 2012
Location: Nashville
Posts: 2,136
We need a forum terminology rule. "Annuity" can only be used to refer to SPIA and SPDA products. "P.O.C. Insurance Product sold by charlatans" is to be used to refer to other things sold as annuities.



(I won't hold my breath)
__________________
OMY * 3 2ish Done 7.28.17
2017ish is offline   Reply With Quote
Old 05-18-2017, 09:01 AM   #36
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: NC
Posts: 17,101
Quote:
Originally Posted by Midpack View Post
Seems timely with some of the fear of bonds threads circulating again...
Quote:
Originally Posted by MrFlish View Post
I'm not sure I've seen the "fear" threads you mention. Can you post some examples to help me understand the concerns better...
There have been many dozens of (dire) "bond warning" threads since 2009, just one of the latest http://www.early-retirement.org/foru...rld-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?
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 50% equity funds / 30% bond funds / 20% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 05-18-2017, 09:14 AM   #37
Moderator
samclem's Avatar
 
Join Date: May 2004
Location: SW Ohio
Posts: 14,404
Quote:
Originally Posted by Gill View Post
Of course they are. Insurance companies are not charities. The point is when you get a quote on an SPIA you can take it or leave it. There is no mystery involved or any later surprise fees. If they say they will pay you $10,000 a year for life, that's what you will get.
Gill
If things change and you need your money back next year, can you get it all back? If you don't get it all back what do they call the difference? Not a "fee," "charge," etc?
samclem is offline   Reply With Quote
Old 05-18-2017, 09:22 AM   #38
Recycles dryer sheets
 
Join Date: Jun 2010
Location: Southwest Florida
Posts: 450
Quote:
Originally Posted by samclem View Post
If things change and you need your money back next year, can you get it all back? If you don't get it all back what do they call the difference? Not a "fee," "charge," etc?
Of course you can't get it back on a pure SPIA. The contract is very simple, i.e., you give them $100,000 premium and they will pay you $10,000 a year for life. The agreement is irrevocable, just the same as you can't get your homeowner's insurance back if your home doesn't burn down. The insurance company is taking the risk you will live almost forever while you take the risk you will die a premature death. It is insurance, pure and simple. If you don't like the deal you don't have to buy it.
Gill
Gill is offline   Reply With Quote
Old 05-18-2017, 09:24 AM   #39
Thinks s/he gets paid by the post
Fedup's Avatar
 
Join Date: Mar 2014
Location: Southern Cal
Posts: 4,032
$10,000 per year is pretty good, I ran some calculator and the the amount I get yearly about $6000 per year at most. IIRC
Fedup is offline   Reply With Quote
Old 05-18-2017, 09:27 AM   #40
Recycles dryer sheets
 
Join Date: Jun 2010
Location: Southwest Florida
Posts: 450
It's obvious you need to grow up. You're much too young to get $10,000 a year. My last purchase was $2,500+ a quarter or more than $10,000 a year. By the way, I'm not here to defend SPIA's or to convince others to buy them. This has been argued ad nauseum on this forum and Bogleheads for years. I'm just saying I have them and I like them.
Gill
Gill is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Retirement Income: fixed income, systematic withdrawals or annuities? BBQ-Nut FIRE and Money 29 03-01-2014 12:34 PM
Happy Holidays! Still haven't purchased a... Mary_From_Georgia Young Dreamers 22 01-01-2008 06:07 AM
News: Rydex purchased Olav23 FIRE and Money 0 07-06-2007 03:11 PM
CPI vs. Items purchased Cut-Throat FIRE and Money 38 11-29-2006 07:19 PM
Re: Things purchased that were truly useful wabmester Other topics 47 03-21-2006 05:03 PM

» Quick Links

 
All times are GMT -6. The time now is 02:52 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.