Here's my situation: wife and I are 64 years old and retired. We have $545,000 in non-qualified funds, invested in stocks and money market. We have $1.8 million in non-qualified assets. Pensions of $3700 per month on both lives. We plan on taking social security at 67, which will bring in $5500 per month.
Of the $1.8 million, $500K is invested in a variable annuity that will yield $2500-2750 per month on both lives beginning next year.
The question...how to best deploy the remaining $1.3 million. FA is suggesting taking another 500K in purchasing annuity, giving us another $3000 in guaranteed income, and then, with about $14,500 in gross income guaranteed (which is more than enough for us to live on comfortably), invest the remaining $800K of qualified funds aggressively.
We are fairly risk averse, so I do like the idea of having the $14,500 of guaranteed monthly income...thoughts? I know so many think annuities are the devil, but this plan feels sensible to me. Thank you! (We own our home and have zero debt.)
Of the $1.8 million, $500K is invested in a variable annuity that will yield $2500-2750 per month on both lives beginning next year.
The question...how to best deploy the remaining $1.3 million. FA is suggesting taking another 500K in purchasing annuity, giving us another $3000 in guaranteed income, and then, with about $14,500 in gross income guaranteed (which is more than enough for us to live on comfortably), invest the remaining $800K of qualified funds aggressively.
We are fairly risk averse, so I do like the idea of having the $14,500 of guaranteed monthly income...thoughts? I know so many think annuities are the devil, but this plan feels sensible to me. Thank you! (We own our home and have zero debt.)