Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
In two years when I reach 59 1/2 my IRA money will be accessible, so i can live off the income. Instead of paying taxes on this money, I thought I WOULD ROLE it into annuity, so I don't have to pay taxes on it, and I get a stream of income.?? There are 100''s of annuities and I was looking into the AARP, that guarantees a $170 a month income for 10 years. What do you feel about that? I think it would be about $40K. I just don't want to pay the high taxes of this IRA money, so a annuity would avoid that, plus providing me a steady stream of income? Appreciate any advice?
I wouldn't be surprised of anything in the next 10-20 years in the investment markets.
-The future is not going to look like the past. I wouldn't be surprised if commodities, gold or bonds outperform stocks from 1999 to 2016 or 2018.
-You have a lot of headwinds under the surface that are still rumbling (i.e. europe, trade imbalances, china, status of the dollar).
This whole retirement in stocks thing (taught to the baby boomers in the 80's and 90's) was predicated on low or declining interest rates, steady dollar, rising earnings. You saw that from 1982 to 1999, but not since then.
I wonder if stocks have ever been a good investment in a country with so much debt as ours. What happens if interest rates go back to 5%? The interest payments on $16 trillion in debt would be $800 billion a year! What happens when the debt is $20 or $22 trillion? We're just buying time with interest rates so low now.
-I think commodities will probably outperform everything from 1999 to 2018 or 2020. Supply and demand got so out of whack. The rising growth in China, Asia, Brazil will probably push prices much higher than in the last bull market of the 70's.
actually when the 4% safe withdrawal rate was tested 7using data from other world markets it failed way to many times.
alot of the data in the studies is based on the fact that we were the prom queen for many decades. we made and sold much of everything the world bought.
well today we are old and wringled and no longer that prom queen so in my opinion much of the growth we saw in our markets wont be happening like it did.
In two years when I reach 59 1/2 my IRA money will be accessible, so i can live off the income. Instead of paying taxes on this money, I thought I WOULD ROLE it into annuity, so I don't have to pay taxes on it, and I get a stream of income.?? There are 100''s of annuities and I was looking into the AARP, that guarantees a $170 a month income for 10 years. What do you feel about that? I think it would be about $40K. I just don't want to pay the high taxes of this IRA money, so a annuity would avoid that, plus providing me a steady stream of income? Appreciate any advice?
good try but wrong , Buying an annuity with after-tax dollars versus pretax dollars in an IRA changes the taxation of the principal return.
Although you can roll an IRA into an annuity contract, the money invested in the contract is still pretax dollars so the payment of the principal and imputed interest to you will always be taxable.
you better read the details on that guarantee , they may give with one hand and take back in fees ,commissions and expenses right out of your balance.
Last edited by mathjak107; 09-21-2012 at 02:41 AM..
I wouldn't be surprised of anything in the next 10-20 years in the investment markets.
-The future is not going to look like the past. I wouldn't be surprised if commodities, gold or bonds outperform stocks from 1999 to 2016 or 2018.
-You have a lot of headwinds under the surface that are still rumbling (i.e. europe, trade imbalances, china, status of the dollar).
This whole retirement in stocks thing (taught to the baby boomers in the 80's and 90's) was predicated on low or declining interest rates, steady dollar, rising earnings. You saw that from 1982 to 1999, but not since then.
I wonder if stocks have ever been a good investment in a country with so much debt as ours. What happens if interest rates go back to 5%? The interest payments on $16 trillion in debt would be $800 billion a year! What happens when the debt is $20 or $22 trillion? We're just buying time with interest rates so low now.
-I think commodities will probably outperform everything from 1999 to 2018 or 2020. Supply and demand got so out of whack. The rising growth in China, Asia, Brazil will probably push prices much higher than in the last bull market of the 70's.
When interest rates go up, it doesn't go up for past debt, but debt issued under the higher rate.
In two years when I reach 59 1/2 my IRA money will be accessible, so i can live off the income. Instead of paying taxes on this money, I thought I WOULD ROLE it into annuity, so I don't have to pay taxes on it, and I get a stream of income.?? There are 100''s of annuities and I was looking into the AARP, that guarantees a $170 a month income for 10 years. What do you feel about that? I think it would be about $40K. I just don't want to pay the high taxes of this IRA money, so a annuity would avoid that, plus providing me a steady stream of income? Appreciate any advice?
170 a month over ten years is half what you're paying for it...
if someone wanted to get a safe ,guaranteed ,dependable income stream with no risk about the best they can do is a 30 year bond. anything else would not meet the criteria of safe dependable and consistant
they may be even able to pull 4% a year out of it inflation adjusted and have it last 23 years..... which isnt nearly long enough.
but what if i said to you give me 100k and ill give you back enough of your own money each year at almost a of 6% withdrawal rate and once i give you back all your own money ill put you on my dime and keep giving you a 6% withdrawal a year for as long as you live.
oh and if you die ill give your spouse that 6% as long as she lives too.
only hitch is if both of you die before you get all your money back i keep whats left.
well dead is dead any way so you might think thats not a bad deal.
well thats an annuity and at its core thats how it works. its a pension that goes on as long as you do and you cant equate that into a return like you can an investment.
its like if you have a contributory pension you cant put a return on that money until your dead.
I have enough assets (CD's and real estate) to give me roughly 15 years of comfortable living @ the 0% interest the banks are paying right now. Yes, I'm spending down all my principle but I have no children and I'll be lucky if I last another 15 years. But I just want to live long enough to pull that last dollar out of my bank accounts and stick my tongue out at Jamie Dimon before I kick the bucket. That would be sweet revenge.
So why not invest in something like bonds? You can get more interest in a reasonably conservative bond fund like Dodge and Cox Income, or Vanguard Short Term Bond Index?
if someone wanted to get a safe ,guaranteed ,dependable income stream with no risk about the best they can do is a 30 year bond. anything else would not meet the criteria of safe dependable and consistant
they may be even able to pull 4% a year out of it inflation adjusted and have it last 23 years..... which isnt nearly long enough.
but what if i said to you give me 100k and ill give you back enough of your own money each year at almost a of 6% withdrawal rate and once i give you back all your own money ill put you on my dime and keep giving you a 6% withdrawal a year for as long as you live.
oh and if you die ill give your spouse that 6% as long as she lives too.
only hitch is if both of you die before you get all your money back i keep whats left.
well dead is dead any way so you might think thats not a bad deal.
well thats an annuity and at its core thats how it works. its a pension that goes on as long as you do and you cant equate that into a return like you can an investment.
its like if you have a contributory pension you cant put a return on that money until your dead.
See below...
Quote:
Originally Posted by smilinpretty
There are 100''s of annuities and I was looking into the AARP, that guarantees a $170 a month income for 10 years. What do you feel about that? I think it would be about $40K.
The way he writes it, he'll get twice a month if he puts his $40,000 in a no interest savings account.
but annuities work the way i described. you cant assign a return to them since your really getting back your own money at a higher rate then you can spend it on your own.
you really have no return until you got back all your money and are on their dime.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
