We are both retired. Assets continue to grow, we likely have three times what we need to maintain lifestyle, in other words we are approaching 90X.
I used to trade a lot, had early success. One of the pieces of advice I always respected was that during periods of success one should take money off the table and buy something, that way if failure or bad market conditions appear one has something to show for the success. I considered buying a Harley, never did. I really never bought anything, and did run into massive failure. I ended up with nothing to show for it.
Our main expenses are easily covered by SS, pension, and RE. We did a small annuity to tide us over until SS age @ 70. Assets have grown significantly since this was purchased, not once have we regretted the decision. When I retired a few months ago, we also pulled all expenses for 2021 out of the market (sold stock) calculating the amount using the VPW method. No regrets pulling this money out and missing gains either.
With such a large asset base, we are considering taking up to 1/3rd of it to purchase a joint life annuity. The payout rate without any inflation adjustments would be near 4%. I think we highly value the potential peace of mind this could bring. We could basically ignore the market the rest of our lives.
We have no kids. No legacy concerns. We would almost guaranteed be okay if we did not get the annuity.
Have any of you done this? Any regrets?
What are your thoughts?
Could peace of mind be better or otherwise obtained?
For this "problem" and your thoughts on the matter I am grateful!
I used to trade a lot, had early success. One of the pieces of advice I always respected was that during periods of success one should take money off the table and buy something, that way if failure or bad market conditions appear one has something to show for the success. I considered buying a Harley, never did. I really never bought anything, and did run into massive failure. I ended up with nothing to show for it.
Our main expenses are easily covered by SS, pension, and RE. We did a small annuity to tide us over until SS age @ 70. Assets have grown significantly since this was purchased, not once have we regretted the decision. When I retired a few months ago, we also pulled all expenses for 2021 out of the market (sold stock) calculating the amount using the VPW method. No regrets pulling this money out and missing gains either.
With such a large asset base, we are considering taking up to 1/3rd of it to purchase a joint life annuity. The payout rate without any inflation adjustments would be near 4%. I think we highly value the potential peace of mind this could bring. We could basically ignore the market the rest of our lives.
We have no kids. No legacy concerns. We would almost guaranteed be okay if we did not get the annuity.
Have any of you done this? Any regrets?
What are your thoughts?
Could peace of mind be better or otherwise obtained?
For this "problem" and your thoughts on the matter I am grateful!