- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Winter Olympics
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Why would anyone do an annuity?
Posted on 6/25/24 at 10:05 am to Nole Man
Posted on 6/25/24 at 10:05 am to Nole Man
Great insight. We did the same thing. My wife is a teacher and will not get my ss income. I rolled a $25,000 401k into a fixed indexed annuity with a lifetime income rider. We can get $3000 per month at age 60 guaranteed. The income doubles for health care reasons. If I die first, she will need income.
0
Posted on 6/25/24 at 10:46 am to BabyTac
I had looked into it as there is something attractive to having a guaranteed income until death. However when you sit down and do the math it doesn’t work out compared to alternate investment opportunities.
That said, we’re all relying on the market to just keep doing what it’s always done for extended periods of time. Future value projections by design take prior history and project forward. If this doesn’t work out as planned a guaranteed income in lieu of living on invested capital could have its place….if those investments remain solvent.
That said, we’re all relying on the market to just keep doing what it’s always done for extended periods of time. Future value projections by design take prior history and project forward. If this doesn’t work out as planned a guaranteed income in lieu of living on invested capital could have its place….if those investments remain solvent.
Posted on 6/25/24 at 11:21 am to SquatchDawg
quote:
had looked into it as there is something attractive to having a guaranteed income until death. However when you sit down and do the math it doesn’t work out compared to alternate investment opportunities.
Instead of thinking of it as an investment think of it as “insurance” against living too long (almost the opposite of life insurance)
It’s peace of mind for a cost in case you are one of the few who lives longer than you expect…and if by purchasing it it allows you to spend and enjoy more earlier in retirement that’s a win by itself
That’s the way it was positioned in the book Die with Zero.
This post was edited on 6/25/24 at 11:29 am
Posted on 6/25/24 at 2:30 pm to SquatchDawg
quote:
had looked into it as there is something attractive to having a guaranteed income until death. However when you sit down and do the math it doesn’t work out compared to alternate investment opportunities.
The math is never going to work out on any insurance product or else the insurance company would go out of business.
Posted on 6/25/24 at 4:47 pm to slackster
Not to mention, I always question why people think annuity companies are more protected than other markets? If the world comes to an end I doubt the last company standing is an annuity insurance company.
It’s like having that sales guy just makes people feel better about it?
I assume if your wife is considerably younger that’s brought into account? What happens if you get an annuity early and then get remarried? I’m assuming it’s just recalculated?
It’s like having that sales guy just makes people feel better about it?
I assume if your wife is considerably younger that’s brought into account? What happens if you get an annuity early and then get remarried? I’m assuming it’s just recalculated?
Posted on 6/26/24 at 9:08 am to baldona
quote:
If the world comes to an end I doubt the last company standing is an annuity insurance company
If the world comes to an end there will be nothing standing. I am curious what is the rate of default of A rated insurance companies?
Page 2 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News