Trooper
Full time employment: Posting here.
Hi...looking for some advice here.
DW and are planning to retire in one year from now. I will be 57 and DW will be 56. Through an arrangement with my employer we are entitled to no-cost financial planning advice from Fidelity. Prior to the meeting I loaded all our financial info (expenses, assets, SS amounts, etc) into their RIP. In that process I indicated which expenses were essential and which were discretionary.
Overall the RIP says we are good until age 93. However, the model also compares essential expenses with fixed sources of income like pensions and SS. Because we are taking SS at aged 67, the model shows we have a gap between guaranteed income and essential expenses of about $4500 month until SS kicks in.
Fidelity's adviser suggests that we buy an 8-year period certain annuity for about $395K that would throw off the $4500 to cover our essential expenses. How do we evaluate whether that is the right thing to do, whether that is a fair quote for the annuity? DW is fairly risk averse. What other investment options are out there that will accomplish the same goal?
Thanks...
DW and are planning to retire in one year from now. I will be 57 and DW will be 56. Through an arrangement with my employer we are entitled to no-cost financial planning advice from Fidelity. Prior to the meeting I loaded all our financial info (expenses, assets, SS amounts, etc) into their RIP. In that process I indicated which expenses were essential and which were discretionary.
Overall the RIP says we are good until age 93. However, the model also compares essential expenses with fixed sources of income like pensions and SS. Because we are taking SS at aged 67, the model shows we have a gap between guaranteed income and essential expenses of about $4500 month until SS kicks in.
Fidelity's adviser suggests that we buy an 8-year period certain annuity for about $395K that would throw off the $4500 to cover our essential expenses. How do we evaluate whether that is the right thing to do, whether that is a fair quote for the annuity? DW is fairly risk averse. What other investment options are out there that will accomplish the same goal?
Thanks...