Ready-4-ER-at-14
Full time employment: Posting here.
I've enjoyed reading about all of your ideas, so time to share some thoughts of my own.
It seems like there is a great time and a less great time to own any financial instrument as measured by did you make money or did you lose money.
With stocks it seems:
If you buy enough companies, in enough sectors, and live long enough (17+ years), you will probably make money.
Which leads us to the stock rule. Only own stocks that went up while you own them.
With insurance always buy the cheapest policy by the strongest best paying company that makes enough profit that they are strong enough to pay your claim should you have one. Meaning I just use the carrier I have used all my life as not enough insurance savvy to know how to do this.
If it is not totally obvious I am kidding a bit on this, but it seems there are certain times to do the best on most anything.
I know the sentiment is against annuities and I have never been able to justify them over say owning long term treasuries (10-30 yrs) and stock. But I like the idea of a pension like check as part of the cash flow.
I read a thread here about maybe annuitizing when you were at risk of your investments paying less than you needed.
I was trying to think when a prudent person might buy an annuity just to give a pension like component to a cash stream at the best price. I assume it would be at a time when fixed income would also pay the most interest rates and preferably the older the better such that projected payout years for the insurance company is the least.
I am thinking of this as sort of a semi dementia/addled mind insurance when my investing skills may be diminishing.
Where would the sweet spot be as a buyer of this stuff assuming you kept the policy amount small enough to be covered by the state pension guarantee program?
Like at age 75 when interest rates are 15%?
Am very curious if other self investors plans to eventually diminish their day to day or periodic supervision and active management.
It seems like there is a great time and a less great time to own any financial instrument as measured by did you make money or did you lose money.
With stocks it seems:
If you buy enough companies, in enough sectors, and live long enough (17+ years), you will probably make money.
Which leads us to the stock rule. Only own stocks that went up while you own them.
With insurance always buy the cheapest policy by the strongest best paying company that makes enough profit that they are strong enough to pay your claim should you have one. Meaning I just use the carrier I have used all my life as not enough insurance savvy to know how to do this.
If it is not totally obvious I am kidding a bit on this, but it seems there are certain times to do the best on most anything.
I know the sentiment is against annuities and I have never been able to justify them over say owning long term treasuries (10-30 yrs) and stock. But I like the idea of a pension like check as part of the cash flow.
I read a thread here about maybe annuitizing when you were at risk of your investments paying less than you needed.
I was trying to think when a prudent person might buy an annuity just to give a pension like component to a cash stream at the best price. I assume it would be at a time when fixed income would also pay the most interest rates and preferably the older the better such that projected payout years for the insurance company is the least.
I am thinking of this as sort of a semi dementia/addled mind insurance when my investing skills may be diminishing.
Where would the sweet spot be as a buyer of this stuff assuming you kept the policy amount small enough to be covered by the state pension guarantee program?
Like at age 75 when interest rates are 15%?
Am very curious if other self investors plans to eventually diminish their day to day or periodic supervision and active management.