Al18
Thinks s/he gets paid by the post
I’ve been running the Fidelity planner for many years, and never saw a recommendation for an annuity. Probably because my investments have always been balanced about 60/40 stocks/fixed income.
I wouldn't compare the two in that way, as you still control your own money with a MYGA. An Income annuity is giving up the control of your money to an insurance company. I can see a use for Income annuities, but not in the same breath as a MYGA.Kind of almost a long term MYGA type security.
Likewise, we keep plenty of cash; it helps me sleep better.We keep 2 years of expenses in money market to avoid possible selling equities at a wrong time although it is a drag on the portfolio.
It may more be the fault of the Fidelity Planning Software &
I am curious if others on the forum who follow the Fidelity Planner Software have come across any such scenarios.
If you use their retirement planner the retirement income section prompts you to explore annuities and bond ladders:Likewise, we keep plenty of cash; it helps me sleep better.
I wonder if FIDO recommends annuities for me and I just don't see it (that is, it doesn't register in my mind).
Are you sure the annuity was not in a tax deferred type of account, which would give you 10 years for distribution?My wife was a beneficiary of an annuity last year from her deceased relative. To our shock, inherited annuities do not get a stepped-up cost basis so we ended up paying taxes on what she inherited.
About the planner. It suggested I be holding bonds right now at 43. Like 30% of my portfolio in bonds, lol.A certain amount of annuity or pension income, in addition to SS, helps insulate your situation from overdependence on portfolio withdrawals.
But I don't know anything about Fidelity's retirement planner...
Thats based on your input. Update your data for different results.About the planner. It suggested I be holding bonds right now at 43. Like 30% of my portfolio in bonds, lol.
Clearly it doesn't understand me.
I was recommended a modest annuity (15% of total IRA) from a Fidelity advisor, in person. In my case it was recommended just as a general buffer to mitigate potential sequence of returns and also as a risk balance against the Bitcoin ETC that I also have (around 8%). I also looked at the prospectus and website (Nationwide) and don't understand exactly the fees etc. I guess I must call Nationwide and get an in depth explanation!
Right - me too. Never advises me to buy one, but I wouldn’t be adverse to adding SPIA at all once I’m 75 as a portion of my portfolio.I’ve been running the Fidelity planner for many years, and never saw a recommendation for an annuity. Probably because my investments have always been balanced about 60/40 stocks/fixed income.