This is something that has been on my mind recently. My mother had dementia and my father is in an advanced state of dementia right now. My brothers who live close to home took care of everything for our parents. I however, am not married and have no kids. I'm currently in my late 40's but do want to start coming up with some kind of a game plan for what to do should I lose the mental ability to look after my affairs, as my parents did.
Perhaps I'll just start giving my stuff away while I'm relatively young, bequeath my money to a good charity, and leave my own care to chance.
Hmmm.....
Annuities provide way to much profit to the provider to be good for the consumer except in unusual circumstances
Yep.Good points. To the first, I would get updated annuity prices at least annually as it won't be a smooth curve at all.
I didn't mean to imply disagreement. My personal problem is that when I get to one of these squishy decision points then I sit there and keep waiting for the heavens to open, the trumpets to flourish, and the choir to sing "Do it!" At the very least I'd be waiting for [-]God[/-] the Fed's next decision on interest rates. Doing a little annuitization at a time over 5-10 years might help avoid doing it at history's lowest rates. But you're right, once you start doing it you have to finish the process. I'm not hoping to get a do-over just because the stock market comes roaring back.There is no way to anticipate the "game over" point, odds are we'd miss it. However, your first point tells me you realize that depending on interest rates and political risk at the time, it's possible that one might actually recover from missing game over - but I would not count on it or make it part of a strategy at all.
If you've read anything from Milevsky's previous opinions of annuities, then your opinion may be updated by reading his "Are You a Stock or a Bond?"Annuities provide way to much profit to the provider to be good for the consumer except in unusual circumstances
Given the source here, I will definitely read it. Thanks for the heads up...If you've read anything from Milevsky's previous opinions of annuities, then your opinion may be updated by reading his "Are You a Stock or a Bond?"
If Milevsky thinks that SPIAs are fairly priced then I'm pretty sure that they're fairly priced. But of course that doesn't mean they're cheap... and I'm not sure I'd want to buy a bargain-basement annuity even if it was being sold by Berkshire or Vanguard's provider.
Good point. Another aspect is will the retiree be mentally able to 'run his money' at an advanced age.
Even if a person does a simple asset allocation and rebalanced once a year, will age issues screw things up. Those with children might turn the finances over to them.
UncleMick's one fund psst Wellesly - is looking attractive.
I'm guessing those are the same people who never leave their house. They never know if they will make it back home again.But interest rates are what they are and nobody knows where they are going.
Other investments providing a regular and secure source of income pay very little at the moment and that's what SPIAs should be compared to. SPIAs might be a very bad deal when placed in an historical context but fixed income instruments are too.
Currently 6.32 % yield - 52 wk high 7.92%
I'm not saying to buy the Vanguard fund now.
My mother was just as thrilled with her fixed interest securities, when I helped her set up her investments, but I wasn't nearly so enthusiastic. After all, if you invest in a mutual stock fund instead, you can probably arrange with the fund to have a fixed payout every month, if the clockwork dependability turns you on. (But obviously it wouldn't be guaranteed forever.)She is absolutely thrilled with them. She gets a check like clockwork every month.
Wil you be sure to tell us when the time is ripe?
Ha
55 - just retired - and need some advice. While not something that I thought I'd ever do, I'm considering putting 15-20% of my nest egg into an Immediate Annuity. There's something about getting that check every month that sounds attractive. Overall, I'm a very conservative investor (largely in cash.)
Am I crazy?
Although not my cup of tea, I can see the logic in a "bridge income" to SS.How would the answers/advice here differ if the 55-er was buying a 15 year period certain SPIA to add some certainty until SS kicked in?
It usually takes a few back&forth posts to get the full picture.How would the answers/advice here differ if the 55-er was buying a 15 year period certain SPIA to add some certainty until SS kicked in?
How would the answers/advice here differ if the 55-er was buying a 15 year period certain SPIA to add some certainty until SS kicked in?
Actually, they change every week. When were were in the process of purchasing our first SPIA, we got a call the same day we returned (via overnight) the application to Fidelity (the SPIA provider).Good points. To the first, I would get updated annuity prices at least annually as it won't be a smooth curve at all.
Drive-by poster?Seems to happen often.
I can't help but notice the OP has not joined in the lively discussion that's ensued since this thread was posted. Seems to happen often.