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BajaGringo
Ultra Nomad
Posts: 3922
Registered: 8-24-2006
Location: La Chorera
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Mood: Let's have a BBQ!
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Other...
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wilderone
Ultra Nomad
Posts: 3894
Registered: 2-9-2004
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A bit of a hijack, but ...
I'd be interested in opinions on annuities. Been going to a few seminars, but feel a little unnevred about plunking everying into one of these.
What's the most important consideration?
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tripledigitken
Ultra Nomad
Posts: 4848
Registered: 9-27-2006
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| Quote: | Originally posted by BajaGringo
Other... |
You're too young to be retired!
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tripledigitken
Ultra Nomad
Posts: 4848
Registered: 9-27-2006
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| Quote: | Originally posted by wilderone
A bit of a hijack, but ...
I'd be interested in opinions on annuities. Been going to a few seminars, but feel a little unnevred about plunking everying into one of these.
What's the most important consideration? |
Wilderone,
Are you talking an immediate annuity? If you are, I would wait for interest rates to rise, which appears to be the case in the not too distant
future. (When you do an IA you lock in today's interest rates for life as a benchmark of the payout.)
Just my 2 cents
Ken
[Edited on 4-5-2011 by tripledigitken]
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BajaGringo
Ultra Nomad
Posts: 3922
Registered: 8-24-2006
Location: La Chorera
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Mood: Let's have a BBQ!
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| Quote: | Originally posted by tripledigitken
| Quote: | Originally posted by BajaGringo
Other... |
You're too young to be retired! |
That is because I am still working (and working and working...) on it!
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Bajahowodd
Elite Nomad
Posts: 9274
Registered: 12-15-2008
Location: Disneyland Adjacent and anywhere in Baja
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| Quote: | Originally posted by tripledigitken
| Quote: | Originally posted by wilderone
A bit of a hijack, but ...
I'd be interested in opinions on annuities. Been going to a few seminars, but feel a little unnevred about plunking everying into one of these.
What's the most important consideration? |
Wilderone,
Are you talking an immediate annuity? If you are, I would wait for interest rates to rise, which appears to be the case in the not too distant
future. (When you do an IA you lock in today's interest rates for life as a benchmark of the payout.)
Just my 2 cents
Ken
[Edited on 4-5-2011 by tripledigitken] |
Absolutely spot on, Ken. Anyone compelled to take an immediate annuity in the last couple of years is likely going to feel envious of those who could
wait.
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sancho
Ultra Nomad
Posts: 2524
Registered: 10-6-2004
Location: OC So Cal
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| Quote: | Originally posted by wilderone
A bit of a hijack, but ...
I'd be interested in opinions on annuities. Been going to a few seminars, but feel a little unnevred about plunking everying into one of these.
What's the most important consideration? |
I've pondered that ? also, compared to, say a CD return,
annuities look good, I'm sure you know more than
I, considering you have attended seminars, 1 item
that bugs me is if the Annuity Co goes under, I don't believe
they are insured, so does
your investment, a recent article suggests not much
more than 20% of your nest egg should go into
an annuity, there is , as of today a possible bit of
movement in interest rates
Bajahowood, this was something I glanced at off a yahoo
finance item a while back, don't know if I could find it
[Edited on 4-5-2011 by sancho]
[Edited on 4-5-2011 by sancho]
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Bajahowodd
Elite Nomad
Posts: 9274
Registered: 12-15-2008
Location: Disneyland Adjacent and anywhere in Baja
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Good point. However, considering the prevailing "too big to fail" ethos, I imagine that if one was to go with one of the larger firms, it might not be
perilous. That raises the issue about interest rates. Likely, the best rates you will find will be from exactly the companies that are not too big to
fail.
I'd be interested in reading the article you cite. Can you point me to it? Thanks.
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monoloco
Elite Nomad
Posts: 6667
Registered: 7-13-2009
Location: Pescadero BCS
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I'd be really careful about any annuity that's denominated in dollars, the way the fed is printing them you may need wheelbarrows full to buy anything
in the future.
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wilderone
Ultra Nomad
Posts: 3894
Registered: 2-9-2004
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A couple annuities that have some appeal have never - in over 100 years - lost principal they say. One company is Aviva. I'll learn about the other
this week. They both track the S&P 500, and you gain what it gains annually (full benefit from upside action), and there is a minimum gain (like
2%) when the S&P loses. The previous gains don't diminish - you just build on the current balance. I actually saw many statements where they
gained 20%-23% last year. One has a 7% bonus when you buy into it. One is a 12 year contract which you can renew if you want, and 4 or 5 hardship
conditions where you can withdraw money outside the normal disbursements. You can choose a death benefit option where your disbursement would be
less, but you'd be building a specific amount for a beneficiary (this would be a good option if you don't have life insurance). The other can be
structured as a stretch IRA where your beneficiary would get the same deal as you have gotten (continued annual payout until death) instead of a lump
sum. What I like about these is that your principal never diminishes, whereas if I start taking required minimum distributions in an account invested
in various mutual funds, the principal will erode (but also be subject to the ups and downs of the market). It's a difficult decision even if you
understand it, because you don't know what the future holds and can be satisfied that this is the right thing for all circumstances. True, they are
not FDIC insured. Thanks for your opinions though.
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tripledigitken
Ultra Nomad
Posts: 4848
Registered: 9-27-2006
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| Quote: | Originally posted by wilderone
A couple annuities that have some appeal have never - in over 100 years - lost principal they say. One company is Aviva. I'll learn about the other
this week. They both track the S&P 500, and you gain what it gains annually (full benefit from upside action), and there is a minimum gain (like
2%) when the S&P loses. The previous gains don't diminish - you just build on the current balance. I actually saw many statements where they
gained 20%-23% last year. One has a 7% bonus when you buy into it. One is a 12 year contract which you can renew if you want, and 4 or 5 hardship
conditions where you can withdraw money outside the normal disbursements. You can choose a death benefit option where your disbursement would be
less, but you'd be building a specific amount for a beneficiary (this would be a good option if you don't have life insurance). The other can be
structured as a stretch IRA where your beneficiary would get the same deal as you have gotten (continued annual payout until death) instead of a lump
sum. What I like about these is that your principal never diminishes, whereas if I start taking required minimum distributions in an account invested
in various mutual funds, the principal will erode (but also be subject to the ups and downs of the market). It's a difficult decision even if you
understand it, because you don't know what the future holds and can be satisfied that this is the right thing for all circumstances. True, they are
not FDIC insured. Thanks for your opinions though. |
The individual that sells those products get a 5%+- commission when they sell them. The fees on the mutual fund investments are high as well. While
your doing your research please talk to any number of fee based investment advisers (ones that don't sell products) and I think you will find that the
majority think variable annuities are a bad investment for most individuals.
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mtgoat666
Platinum Nomad
Posts: 20372
Registered: 9-16-2006
Location: San Diego
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Mood: Hot n spicy
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what are your medicare benefits?
y'all forget to mention medicare?
did you see the republicans this week proposed to let all people today over 55 live out their lives on medicare, and all people today under 55 will be
given peanuts.
i guess you elderly are set for life, and us youth are now responsible for supporting you oldsters, so us youth need to find a way to tax the old
& rich.
funny thing is that medicare will continue to run up debt, and todays youth won't be able to use medicare, but todays youth will have the pleasure of
paying off the debt.
how about we increase the estate tax for people today over 55 to pay for the medicare that only they will be allowed to get?
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LaloinBaja
Junior Nomad
Posts: 97
Registered: 10-29-2010
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 Social Security for the esposa...SS disability for me...Seems just to be enough
each month...We travel every other month...between doctors' appts and other minor things that get in the way...we live in BCN 100% of the time....
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fishingmako
Nomad
Posts: 259
Registered: 10-10-2008
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Mood: always up
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Get into foreign currencies, some have great returns.
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baronvonbob
Nomad
Posts: 196
Registered: 1-5-2010
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| Quote: | Originally posted by mtgoat666
y'all forget to mention medicare?
did you see the republicans this week proposed to let all people today over 55 live out their lives on medicare, and all people today under 55 will be
given peanuts.
i guess you elderly are set for life, and us youth are now responsible for supporting you oldsters, so us youth need to find a way to tax the old
& rich.
funny thing is that medicare will continue to run up debt, and todays youth won't be able to use medicare, but todays youth will have the pleasure of
paying off the debt.
how about we increase the estate tax for people today over 55 to pay for the medicare that only they will be allowed to get? |
And who paid school taxes for you? Somebody must have raised you or are your ancestors Goats?
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Lobsterman
Super Nomad
Posts: 1815
Registered: 10-7-2008
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* Annuity for working for a company 38 years.
* SS
*401 K
* savings
* younger executive wife still working full-time for the next 7 years.
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jimgrms
Senior Nomad
Posts: 664
Registered: 9-30-2005
Location: oceanside ca
Member Is Offline
Mood: its always good
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Navy ret
Union ret
SS
90%VA disability
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bajadock
Super Nomad
Posts: 1219
Registered: 12-20-2006
Location: Punta sur de \'Nada
Member Is Offline
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Next 10-20 years should be interesting during boomers' retirement period. I know too many who have lots of stuff and little plan for their next
phase. "Big hats, big boots, no cattle"
Business hiring trend seems to be more contract employees without health or retirement benefits.
I never really retired. Just stopped working. No income for me, so I'm on fixed outgo.
Quick read on beginning of U.S. pensions.
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Sweetwater
Senior Nomad
Posts: 915
Registered: 11-26-2010
Member Is Offline
Mood: chilly today hot tomale
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| Quote: | Originally posted by bajamedic
Why Do I Like Retirement !!!
Question: How many days in a week?
Answer: 6 Saturdays, 1 Sunday
Question: When is a retiree's bedtime?
Answer: Three hours after he falls asleep on the couch.
Question: How many retirees to change a light bulb?
Answer: Only one, but it might take all day.
Question: What's the biggest gripe of retirees?
Answer: There is not enough time to get everything done.
Question: Why don't retirees mind being called Seniors?
Answer: The term comes with a 10% discount.
Question: Among retirees what is considered formal attire?
Answer: Tied shoes.
Question: Why do retirees count pennies?
Answer: They are the only ones who have the time.
Question: What is the common term for someone who enjoys work and refuses to retire?
Answer: NUTS!
Question: Why are retirees so slow to clean out the basement, attic or garage?
Answer: They know that as soon as they do, one of their adult kids will want to store stuff there.
Question: What do retirees call a long lunch?
Answer: Normal .
Question: What is the best way to describe retirement?
Answer: The never ending Coffee Break.
Question: What's the biggest advantage of going back to school as a retiree?
Answer: If you cut classes, no one calls your parents.
Question: Why does a retiree often say he doesn't miss work, but misses the people he used to work with?
Answer: He is too polite to tell the whole truth.
And, my very favorite....
QUESTION: What do you do all week?
Answer: Monday through Friday, NOTHING..... Saturday & Sunday, I rest. JH |
Can I comment on how much I enjoyed reading and sharing this with many friends.....
Everbody\'s preachin\' at me that we all wanna git to heaven, trouble is, nobody wants to die to git there.-BB King
Reality is what does not go away when you stop believing in it. -Philip K Dick
Nothing is worse than active ignorance. Johann Wolfgang von Goethe(1749-1832, German writer, artist and politician)
When choosing between two evils, I always like to try the one I\'ve never tried before. - Mae West
Experience is what keeps a man who makes the same mistake twice from admitting it the third time around.
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