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
Poll: How Much Income Are You Planning From Purchased Annuities?
Old 05-16-2017, 09:21 AM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: NC
Posts: 17,107
Poll: How Much Income Are You Planning From Purchased Annuities?

Seems timely with some of the fear of bonds threads circulating again...

Not the poll is about annuities YOU have or plan to purchase, not Soc Sec, employee pensions or other annuity equivalents.
__________________
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 online now   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 05-16-2017, 09:42 AM   #2
Administrator
Alan's Avatar
 
Join Date: Jul 2005
Location: N. Yorkshire
Posts: 29,721
Quote:
Originally Posted by Midpack View Post
Seems timely with some of the fear of bonds threads circulating again...

Not the poll is about annuities YOU have or plan to purchase, not Soc Sec, employee pensions or other annuity equivalents.
Would you like those of us with pensions to not vote in the poll, or vote No Plans?
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Enough private pension and SS income to cover all needs
Alan is offline   Reply With Quote
Old 05-16-2017, 09:49 AM   #3
Full time employment: Posting here.
 
Join Date: Nov 2009
Posts: 589
Again (as earlier today)

edit/add (meaning I like the way you think)
__________________
Believe me, my young friend, there is nothing - absolutely nothing - half so much worth doing as simply messing about in boats. Kenneth Grahame, The Wind in the Willows
fritz is offline   Reply With Quote
Old 05-16-2017, 09:49 AM   #4
Moderator
 
Join Date: May 2007
Posts: 12,845
It's too early to tell whether I will purchase an annuity. It depends on where my portfolio is heading when I reached my 70s. If the portfolio performs well, I may never buy an annuity. If not, the goal would be for SS and annuity income to cover our basic expenses. I am not sure how much we will get from SS, but based on my best guess annuity income might represent up to 25% of our total income.
__________________
46 years old, single, no kids. Exited the job market in 2010 (age 36). Have lived solely off my investments since 2015 (age 41). No pensions.
Current AA: real estate 64% / equities 10% / fixed income 16% / cash 10%
FIREd is offline   Reply With Quote
Old 05-16-2017, 09:52 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Apr 2010
Posts: 4,092
Not planning to purchase an annuity now, perhaps in the future.

IF I was planning to buy one, now is definately NOT the time that I would buy.
Interest rates are too low hence the annuity premium is too high. Better to wait for the inevitable round on inflation and higher interest rates that seems to be coming down the pike.
brett is online now   Reply With Quote
Old 05-16-2017, 09:58 AM   #6
Thinks s/he gets paid by the post
2017ish's Avatar
 
Join Date: Apr 2012
Location: Nashville
Posts: 2,136
Quote:
Originally Posted by FIREd View Post
It's too early to tell whether I will purchase an annuity. It depends on where my portfolio is heading when I reached my 70s. [And upon rates then quoted for SPIA products, and upon how far off I am with my continuing hyper-conservative/illogical "$0" working estimate for Social.] ...
+1.

I'll likely look closely at getting one sufficient to cover DW's baseline, non-travel expenses in anticipation of my earlier demise. Given that we are 57/56 now, I can't fairly answer the poll--even with a 10ft pole.
__________________
OMY * 3 2ish Done 7.28.17
2017ish is offline   Reply With Quote
Old 05-16-2017, 10:00 AM   #7
Thinks s/he gets paid by the post
Fedup's Avatar
 
Join Date: Mar 2014
Location: Southern Cal
Posts: 4,032
Not planned. My SS at 70 will be my annuity.
Fedup is offline   Reply With Quote
Old 05-16-2017, 10:10 AM   #8
Thinks s/he gets paid by the post
 
Join Date: Sep 2013
Location: Ventura County
Posts: 1,274
Probably none, but still haven't entirely ruled out a QLAC. More than 50% of my assets are in tax deferred accounts and my parents both lived well into their 90s, so I'm probably the target audience for one of these.
stepford is online now   Reply With Quote
Old 05-16-2017, 10:57 AM   #9
Recycles dryer sheets
 
Join Date: Mar 2017
Location: PEPPER PIKE
Posts: 117
Both DH and I had pensions, which the company changed to a defined contribution plan. instead of taking the lump sum we chose to annuitize but we did it by taking the lump sum and purchasing single premium annuities with clause about doubling the payout if you need care. Does that count? We think of them as the pensions we were expecting before the company changed the plan. Anyway it was about a quarter of our assets when we purchased (not including projected SS).
Crewer is offline   Reply With Quote
Old 05-16-2017, 11:05 AM   #10
Moderator Emeritus
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 45,264
I voted over 50%. This would be from an SPIA annuity I may buy for around $100K if/when I reach my mid 80's.

By that age (assuming current rates), that will cover over 50% of my spending and my SS + pension will cover the rest. My investments can just sit there untouched, for my heirs. Until my mid 80's, no annuity is planned. If the rates are lousy by that time, I'll just skip buying an annuity entirely.
__________________
Happily retired since 2009, at age 61.
W2R is online now   Reply With Quote
Old 05-16-2017, 11:10 AM   #11
Moderator
samclem's Avatar
 
Join Date: May 2004
Location: SW Ohio
Posts: 14,404
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.
samclem is offline   Reply With Quote
Old 05-16-2017, 11:14 AM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: NC
Posts: 17,107
Quote:
Originally Posted by Alan View Post
Would you like those of us with pensions to not vote in the poll, or vote No Plans?
No plans. I'm curious who actually has bucked/plans to buck the annuity loss aversion hurdle by sacrificing a significant chunk of their $ nest egg for an annuity. People repeatedly fret about future bond returns, but how many act?

I guess I should've stipulated a timeframe. W2R's example is over 50%, but presumably 0% until she's mid 80's.

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.
__________________
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 online now   Reply With Quote
Old 05-16-2017, 11:21 AM   #13
Moderator Emeritus
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 45,264
Quote:
Originally Posted by Midpack View Post
No plans. I'm curious who actually has bucked/plans to buck the annuity loss aversion hurdle by sacrificing a significant chunk of their $ nest egg for an annuity. People repeatedly fret about future bond returns, but how many act?

I guess I should've stipulated a timeframe. W2R's example is over 50%, but presumably 0% until she's mid 80's.

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.
Right, I'm sorry if I voted wrong. If it is important let me know and I can edit the poll.

Also, in my case the $100K will not be a significant chunk of my nest egg at all. Actually I would have plenty from dividends, but I am thinking that I may want the convenience of having a predictable amount deposited each month for my bills (which are automatically deducted from checking). This could make life easier if I am senile or dying, and can't fool with any of it myself.

And even if (heaven forbid) I was crazy as a loon by that age and gave my entire portfolio to the Hare Krishnas or some weird cult or a con man, I'd still have enough to live on from the annuity, SS, and pension. I don't expect that to happen but I guess nobody really does, and I want to protect myself from myself in that event.
__________________
Happily retired since 2009, at age 61.
W2R is online now   Reply With Quote
Old 05-16-2017, 12:13 PM   #14
Thinks s/he gets paid by the post
 
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 4,982
Unless interest rates go up significantly, I will not be buying any in the foreseeable future. Even then I will buy CDs and create my own.
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
ShokWaveRider is offline   Reply With Quote
Old 05-16-2017, 12:23 PM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: NC
Posts: 17,107
Quote:
Originally Posted by W2R View Post
Right, I'm sorry if I voted wrong. If it is important let me know and I can edit the poll.
You didn't vote wrong, in retrospect the poll needed a timeframe stipulation, but I'm not sure how I'd include that in a meaningful way. I guess I should have framed it in % of liquid net worth have/will folks spend on an annuity. Oh well, it's not the first time I've done a poll with unintended results...sigh.
__________________
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 online now   Reply With Quote
Old 05-16-2017, 12:28 PM   #16
Moderator Emeritus
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 45,264
Quote:
Originally Posted by Midpack View Post
You didn't vote wrong, in retrospect the poll needed a timeframe stipulation, but I'm not sure how I'd include that in a meaningful way. I guess I should have framed it in % of liquid net worth have/will folks spend on an annuity. Oh well, it's not the first time I've done a poll with unintended results...sigh.
It's incredibly difficult to write a good poll that will provide the desired results, here. I have an awful time doing it, when I write polls. I have sure tried often enough, and I'm hoping that practice makes perfect (eventually).
__________________
Happily retired since 2009, at age 61.
W2R is online now   Reply With Quote
Old 05-16-2017, 12:36 PM   #17
Thinks s/he gets paid by the post
2017ish's Avatar
 
Join Date: Apr 2012
Location: Nashville
Posts: 2,136
Quote:
Originally Posted by W2R View Post
It's incredibly difficult to write a good poll that will provide the desired results, here. I have an awful time doing it, when I write polls. I have sure tried often enough, and I'm hoping that practice makes perfect (eventually).
Unless very simple poll, it is going to be quite difficult. Such a variety of backgrounds, ages, and retirement funding (and spending) among even the active posters. Arriving at a perfect poll of any complexity would be on par with successfully herding cats.
__________________
OMY * 3 2ish Done 7.28.17
2017ish is offline   Reply With Quote
Old 05-16-2017, 12:49 PM   #18
Recycles dryer sheets
 
Join Date: Apr 2012
Location: Seattle
Posts: 479
I voted "None Planned" as I'm one of those with a pension (although I treat is as an annuity). Hence my sightly more aggressive portfolio mix of 70/30. Chao.
__________________
57 now ER'd at 55 (Megacorp 31 yrs). Still figuring out *retirement*. Company pension and 70/30 asset mix. New to the ER game....
supernova72 is offline   Reply With Quote
Old 05-16-2017, 01:11 PM   #19
Thinks s/he gets paid by the post
Cobra9777's Avatar
 
Join Date: Jul 2012
Location: Texas
Posts: 2,383
None planned. We already have 2 pension annuities. And later, 2 large SS benefits. If I had a do-over, probably would take one of the pensions as a lump sum. We're already a bit too heavy on the annuitization side. So it would be highly unlikely that either of us would purchase a SPIA.
__________________
Retired at 52 in July 2013. On to better things...
AA: 55% stock, 15% real estate, 27% bonds, 3% cash
WR: 2.7% SI: 2 pensions, some rental income, SS later
Cobra9777 is offline   Reply With Quote
Old 05-17-2017, 03:21 PM   #20
Recycles dryer sheets
 
Join Date: Jun 2010
Location: Southwest Florida
Posts: 450
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.
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 03:07 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.