pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Nah, I'm optimistic that they will do nothing since that is their nature.You are more optimistic than I am on what our politicians will do.
Nah, I'm optimistic that they will do nothing since that is their nature.You are more optimistic than I am on what our politicians will do.
don't know how the bond holders of GM did...
Find one and ask him......actually, they all got the shaft.
I have the option to buy additional pension payout for a lump sum with zero carrier risk. Things could change, but if I were 55 today I could get a second to die fully CPI indexed payout of about 3.6% of the principal. Would you do this?
Misinformed.
Index annuities do not charge fees.
Anything that an annuity seller does to structure an annuity, especially a fixed annuity, can be easily done on your own. Retain control of your money without paying ridiculous fees, and run very quickly from annuities.
Except for mortality credits.
If anyone wants to play the game of paying more upfront because they think they might outlive the remaining players and collect more, have at it. I prefer the bird in hand, namely controlling my own money and not paying ridiculous fees, than depending upon the kindness of annuity providers that they will actually pay out the monies they promise, come hell or high water.
The pile presumably exists to serve a purpose/several purposes. In some cases, buying an annuitized income stream can help accomplish that.All fine and well, and if you want to maximize your pile to your last day and take the risk that is up to you.
. . . .
I am some years away from making a decision, but for me simply maximizing the pile is not going to be the most important outcome.
All fine and well, and if you want to maximize your pile to your last day and take the risk that is up to you.
For me, the question is a different one: how do I best manage the risk that dw or I will outlive our money? The solution set includes a huge pile of assets, but that doesn't need to be the only tool used. The reality is that longevity runs in dws family, and my family seems to stick around a long time even when they are in poor health. I also see how dad has lost a lot of his business acumen at 80 and mom is getting a lot less on the ball at 77. It would be nice to think I will still be at the top of my game then, but I can't count on it.
I am some years away from making a decision, but for me simply maximizing the pile is not going to be the most important outcome.
What makes an SPIA acceptable to many, while other annuities are not? Is it the simplicity and competition that makes it hard to hide expenses and keeps the prices low? Or something else? I see this tossed around all the time with no explanation why.
I understand your rationale. At 65 I may have a different perspective, and I will admit I have a healthy distrust of most insurance companies that issue annuities. That being said I may look at Vanguard's offerings in that regard, since I have dealt with them for some years now and feel they are the best of breed. Good luck whichever way you decide to go. Nice that we have first world problems like we do, such as having to make investment decisions for relatively decent amounts of assets.
I think it's primarily what you wrote - SPIAs tend to be straightforward products with fees that are harder to hide vs. other annuity types (primarily variable types) that tend to obfuscate fees and have heavy pushes from salespeople who may earn a pretty high commission which is also part of the fees. ...
What makes an SPIA acceptable to many, while other annuities are not? Is it the simplicity and competition that makes it hard to hide expenses and keeps the prices low? Or something else? I see this tossed around all the time with no explanation why.
In my mind, a spia is a transparent longevity hedge. All the other products are basically a shell game.
I was never a fan of annuities but I came across an article that people who buy annuities are happier about their finances because they know their revenue stream. That is itself for me is a big enough reason to buy some annuities in the future.
.... I am 68 y o, receive a payout of ~ 7 % which is much higher than the interest (payout) that I would receive from a 5 year CD, and will not be bothered that upon my last breath, I leave some otherwise principal on the table. ...