Wellesley vs Annuity

[JohnEyles]

Quote:

Originally Posted by ats5g I suppose an application of this would be that if you start retirement with not very much savings, you'll have to annuitize virtually everything up front. Does that sound right?

Yes, that's how I interpret it (but the the article is kinda dense).
And no one responsible seriously recommends this, even the
SPIA-shilling articles which have been popping up everywhere
(and will probably accelerate as the baby boomers go into
retirement, I think things could REALLY start getting ugly !)
recommend at most half of your egg.

[twaddle]

I just noticed that Vanguard publishes expense information for their (AIG and Lincoln Life) annuity offerings. Do insurance companies publish these numbers?

The average annual fee under the Vanguard Lifetime Income Program's variable income option is 0.79%—well below half the 2.39% industry average.* That's a potential savings of nearly $1,600 a year on a $100,000 annuity.

The average annual fee for the Vanguard Variable Annuity is 0.57%, compared with an industry average of 2.39%—a potential savings of over $1,800 a year on a $100,000 contract.

[Hillbilly]

Funny how a simple fund like Vanguard Wellesley fund can get such a response. I plan to hold this fund starrting in my 60's.

[yakers]

DW retired last year & her funds were tied up in a 403b/annuity/funds from hell structure. Just passed the date for surrender fees and her funds went straight into VG Wellesley IRA. There may be later diversifications but I expect she will hold this fund forever as her annuity/income source.