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they are , they are just like cd's but from an insurer . that is what they call their version of cd . gic's and period certain products. these have no mortality credits nor forfeitures like annuities would which span a life time . the rate is the rate .
High yield muni funds throw off more income (albeit with greater risk). But, no investment is risk-free, so it's part of the trade-off. My muni still has a positive return and I'm reinvesting the monthly income to buy more shares.
I decided on a different route. Because I need to constrain my taxable income starting this year, I decided to put some otherwise taxable monies in national muni bond funds to generate federal tax-free income. You can find yields over 4%. There is, of course, risk involved since they are subject to changes in interest rates, but it's something to look into and consider as part of your portfolio.
You meant buy bonds and hold--correct?
(Then I saw later comment--so muni bond fund)
Have friend who did that before stock market droppen in 08
He had early retired after selling out of interest in small o/g production company
He freaked initially because face value of bonds dropped but premiums never failed
Likely face value is higher now bcuz interests are above 3 for many of them
High yield muni funds throw off more income (albeit with greater risk). But, no investment is risk-free, so it's part of the trade-off. My muni still has a positive return and I'm reinvesting the monthly income to buy more shares.
in order to see that kind of interest they have to be long term muni's . they can be nothing like a cd and most are negative ytd return wise in that interest region .
in fact i don't see not one fidelity muni bond fund positive ytd including with the interest . most are down 1-2%
I know "An*#$ties" are bad words in some circles, and many ARE. But I am looking for CD replacements for Non-qualified Moneys in December when my 3% PenFed CDS run out.
Enter the "Fixed" annuity. Currently Returning 3.7% for 5 Years (A+ Rated Co. Including any fees which are low), No penalty 10% Withdrawals per Annum, deferred interest and the Big one; Guaranteed up to $250k per contract in the state of Florida. and added benefit they are protected from unscrupulous grabbing Lawyers hands.
Thoughts. Thinking of putting about $500k in 2 contracts when the time comes.
I can offer you a better annuity than that if you are in Florida. Pm me if you are interested, i am a licensed agent in Florida
in fact i don't see not one fidelity muni bond fund positive ytd including with the interest . most are down 1-2%
I'm not talking about Fidelity munis. I never once mentioned Fidelity.
Being in the black or in the red depends on when someone purchased their muni fund. A fund can be down overall for a period of time and yet an individual can be in the black because they happened to purchase when the share price was even lower than it is now, which is my situation.
The reality is that if someone needs to or wants to generate tax exempt income in a non-retirement portfolio, there aren't many ways to accomplish that. You go with the options you have available and do the best you can.
the annuity you are looking it is not really an annuity, it is basically a cd from an insurer for 5 years . insurers do not offer cd's so they offer "period certain annuity contracts " like immediate annuities there are no other fees unless you use a middleman . the rate is all inclusive . if you like it that is the deal .
there are no mortality credits like annuities benefit from and those who die don't contribute to those who live . it is just like a 5 year cd with some different twists tax wise .
so these are really proxies for a cd and not an actual annuity product as we think of them .
but when considering actual annuity products ,it would be poor financial sense to ever buy any annuity before delaying taking ss first .
there is no commercial annuity you can buy that would pay as much , be cola adjusted and pass to a spouse that would be as good as what you would get from ss for the cost of laying out the ss amount you are not collecting from 62 to 70.
it is the best value in an annuity you can buy . annuities should only be considered after you delay taking ss . it is a terrible deal in comparison taking early ss and then buying an annuity product.
cola adjusted annuities are the worst deals out there and the main reason you never want to use annuities in isolation . keep in mind your personal cost of living is very different from the adjustments the cpi gives you . there is little in common between your cost of living and a price index which has most of the items not applying to you or the way you buy or even your location .
you want your inflation protection in growth vehicles .
Yes to everything, and that's how I played it with a portion of assets .. when the time was right.
I'm not talking about Fidelity munis. I never once mentioned Fidelity.
Being in the black or in the red depends on when someone purchased their muni fund. A fund can be down overall for a period of time and yet an individual can be in the black because they happened to purchase when the share price was even lower than it is now, which is my situation.
The reality is that if someone needs to or wants to generate tax exempt income in a non-retirement portfolio, there aren't many ways to accomplish that. You go with the options you have available and do the best you can.
you can be in the black but the black becomes less and less as rates rise and eventually your nav drop will reduce you so much that it can hardly be worth the risk .
rising rates are never going to be good for longer term muni's . remember compared to a risk free cd in rising rates that cd will do better eventually.
so if someone wants a risk free cd i would never recommend a long term muni fund.
you want your inflation protection in growth vehicles .
I do not mean to deviate from this thread but I am actually was looking at a similar (or same?) annuity for my parents as the next step after figuring out my mom's social security situation (which you really helped me out on-many thanks-!). So generally what should be the next step after delaying social security? My parents won't have any other income except from their social security (which is just about $1000 combined) but between us we managed to save about $400K in the bank. Again I am really sorry, I know this is a big topic and needs a separate thread in itself but since you are already on this topic I figure I can ask for a few quick pointers. Thanks!
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