ethernow
Dryer sheet wannabe
Hi:
Before reading further, if you don't own an immediate annuity, I respectfully ask that you don't respond to my post! I'm seeking input only from individuals who are living-on the income from a lifetime immediate annuity (SPIA)!
I'm 57 and I retired nearly 2 years ago. I'm living on my pension plus 4% of my 401K balance, withdrawn annually. I'll rollover my 401K into my Vanguard IRA in about 2 years. I like the simplicity of a lifetime immediate annuity and, of course, Vanguard offers these! I'm considering purchasing an immediate annuity because, for the past 15 years, the stock market has been very volatile, while under-performing bonds in the long-term. Making a difficult investing environment even worse is the fact that bonds have recently lost their safe-haven status! Since I believe that the future will be even more challenging, an immediate annuity looks very enticing to me!
I'd like to purchase an immediate annuity that starts paying at age 60. Since I'm single, I don't need a death benefit. I plan-on using 90% of my IRA balance to purchase the annuity and leaving the rest in my IRA, for emergencies. According to Vanguard's annuity income calculator, I'd earn one-third more income from the immediate annuity than 4% of my 401K balance generates today! I realize that there are a number of drawbacks with annuities, but I'd like to focus this discussion on specific questions about the policy that you purchased and your experiences with the annuity.
1) What percentage of your nest egg did you use to purchase your annuity?
2) Did you limit the amount you invested to the maximum amount that your state's insurance protection agency will cover if the insurer fails?
3) Which insurer issued your policy?
4) Did you purchase a policy with inflation protection?
5) If you did not purchase inflation protection, do you regret not having it?
6) At what age did your annuity payments start?
7) Do you regret purchasing your annuity and, if so, why?
If there's anything that you believe is important, but I failed to ask, please include it in your reply!
Thanks!
John Swanson
Before reading further, if you don't own an immediate annuity, I respectfully ask that you don't respond to my post! I'm seeking input only from individuals who are living-on the income from a lifetime immediate annuity (SPIA)!
I'm 57 and I retired nearly 2 years ago. I'm living on my pension plus 4% of my 401K balance, withdrawn annually. I'll rollover my 401K into my Vanguard IRA in about 2 years. I like the simplicity of a lifetime immediate annuity and, of course, Vanguard offers these! I'm considering purchasing an immediate annuity because, for the past 15 years, the stock market has been very volatile, while under-performing bonds in the long-term. Making a difficult investing environment even worse is the fact that bonds have recently lost their safe-haven status! Since I believe that the future will be even more challenging, an immediate annuity looks very enticing to me!
I'd like to purchase an immediate annuity that starts paying at age 60. Since I'm single, I don't need a death benefit. I plan-on using 90% of my IRA balance to purchase the annuity and leaving the rest in my IRA, for emergencies. According to Vanguard's annuity income calculator, I'd earn one-third more income from the immediate annuity than 4% of my 401K balance generates today! I realize that there are a number of drawbacks with annuities, but I'd like to focus this discussion on specific questions about the policy that you purchased and your experiences with the annuity.
1) What percentage of your nest egg did you use to purchase your annuity?
2) Did you limit the amount you invested to the maximum amount that your state's insurance protection agency will cover if the insurer fails?
3) Which insurer issued your policy?
4) Did you purchase a policy with inflation protection?
5) If you did not purchase inflation protection, do you regret not having it?
6) At what age did your annuity payments start?
7) Do you regret purchasing your annuity and, if so, why?
If there's anything that you believe is important, but I failed to ask, please include it in your reply!
Thanks!
John Swanson