Hello everyone,
I have a question that I was hoping to get some guidence on:
Our Fidelity advisor has recommended that we consider an income annuity given the current interest rates. She is recommending a ~1M investment and that will get us ~$5,000 per month starting between now or in the next few years (depending on the option), with a 20-year guaranteed beneficiary. The annual payout rate is 6.2%.
It’s not an area that I know much about. As I’m learning, there are a lot of different options / factors when it comes to annuities, but I am just curious what your thoughts are overall on annuities at this time.
A little bit about us for context:
I am 42, and my husband is 44. We would like to retire / become financially independent in the next 3 – 5 years. We estimate that we’ll need around $12K - $14K for monthly expenses but this will vary as we get older (e.g., we won’t be traveling as much)
Our current portfolio is $3,040,645 and consists of the following
• 401Ks: $892,386
• Employer Stock Options: $139,688
• Fidelity Investment Portfoilo: $2,008,571
- Domestic Stock (47%) / Foreign Stock (18%) / Bonds (27%) / Short Term (8%) - we usually don’t have this much cash, we just haven’t rebalanced in awhile
Thank you in advance for any advice or wisdom you have.
I have a question that I was hoping to get some guidence on:
Our Fidelity advisor has recommended that we consider an income annuity given the current interest rates. She is recommending a ~1M investment and that will get us ~$5,000 per month starting between now or in the next few years (depending on the option), with a 20-year guaranteed beneficiary. The annual payout rate is 6.2%.
It’s not an area that I know much about. As I’m learning, there are a lot of different options / factors when it comes to annuities, but I am just curious what your thoughts are overall on annuities at this time.
A little bit about us for context:
I am 42, and my husband is 44. We would like to retire / become financially independent in the next 3 – 5 years. We estimate that we’ll need around $12K - $14K for monthly expenses but this will vary as we get older (e.g., we won’t be traveling as much)
Our current portfolio is $3,040,645 and consists of the following
• 401Ks: $892,386
• Employer Stock Options: $139,688
• Fidelity Investment Portfoilo: $2,008,571
- Domestic Stock (47%) / Foreign Stock (18%) / Bonds (27%) / Short Term (8%) - we usually don’t have this much cash, we just haven’t rebalanced in awhile
Thank you in advance for any advice or wisdom you have.