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Please help me analyze this investment for part of my IRA. Currently 63. I invest 100k now and in 10 years I am guaranteed $12,799/year for life. My beneficiaries will receive any proceeds left in my account value, if any, upon my death. Dont care about what's left for beneficiaries in this investment, theyre well taken care of elsewhere. Please analyze strictly for generating lifetime income for myself in 10 years.
there are two account values usually , a guaranteed virtual amount used only for annuitizing and nothing else , and then your actual account which has all the fees ,expenses and commissions come out of it . there is no way of saying what your deal is without really going through the plan.deferred annuities can be very complex and what you think the deal is many times is not .
if you saw the guaranteed 5.50% growth rate on the deferred annuity i broke out here a few times you never actually see that amount of growth even though they do apply it .
Last edited by mathjak107; 09-04-2018 at 10:05 AM..
there are two account values usually , a guaranteed virtual amount used only for annuitizing and nothing else , and then your actual account which has all the fees ,expenses and commissions come out of it . there is no way of saying what your deal is without really going through the plan.deferred annuities can be very complex and what you think the deal is many times is not .
if you saw the guaranteed 5.50% growth rate on the deferred annuity i broke out here a few times you never actually see that amount of growth even though they do apply it .
Your response is appreciated but worthless. I clearly state my objective is to provide a lifetime income for myself investing 100k now and starting income in 10 years when I will be 73. This investment guarantees to provide 12,799/yr. I'm looking for alternatives that can provide the same amount or more, if they exist. Not looking for a total return analysis.The account value is IRRELEVANT to my stated objective.
sorry but without me reading the policy i would not even trust that amount to be the case . i am not saying it isn't but the devil is always in the details .so when you say analyze analayze what ? you already said that will be your income if correct . what else do you want ? a deferred annuity is a deferred annuity . if we said go invest on your own that is not an alternative to an insurance product
Please help me analyze this investment for part of my IRA. Currently 63. I invest 100k now and in 10 years I am guaranteed $12,799/year for life. My beneficiaries will receive any proceeds left in my account value, if any, upon my death. Dont care about what's left for beneficiaries in this investment, theyre well taken care of elsewhere. Please analyze strictly for generating lifetime income for myself in 10 years.
I’m not sure I’m clear on what you mean by ‘proceeds left in my account value.’ Can you give an example? Say you lived until 75, what amount do you think is left in your account? Is it 100,000 - (12799 * 2)?
Based on that response, you also really HAVE to know (estimate) how long you think you are going to live to analyze anything. Otherwise we have to analyze each year after 63 to determine what rate of return you’d need to beat it.
I put your numbers into the form at immediateannuities.com and the quote given is $13,044. So your number seems to be in the ballpark. Keep in mind that number is just an estimate, as the real amount will depend on your exact birthdate and the exact day when you wish to start payments.
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OP: You have a VAs with a GLWB (Guaranteed Lifetime Withdrawal Benefit or similar words), deferred. Doubtful that you may have a GLWB Fixed-Indexed annuity, but it is possible.
We, wife and I (71 and 68), transferred such annuities into new GLWB VA's in July and August 2018. Previous annuities were coming out of guarantee stepup period in Nov 2018, 10 years since purchase. We saw MANY presentations in 2008. Asked a lot questions and essentially boiled these annuities to a mimicked PERs retirement plan, that these were not a mortality annuity (SPIA) but a long straddle option play on your Account Value for Income.
Why we bought: 1) Future Income at the depths of the Great Recession, age 59/62; 2) Portfolio Insurance; 3) Pension substitute. I had no pension and wife had a theoretical small pension; 4) Death Benefit (single heir then 23 and trying to find a job with a MS-CS degree) and tax quirks particular to this type of annuity; 5) Ability to future plan our retirement and make long range tactical & strategic a moves in our trading accounts and other assets.
Last edited by leastprime; 09-04-2018 at 12:21 PM..
There is nothing to analyze. You have a contract that guarantees, in writing, what your minimum Income will be in 10 years.
True. Rather than an analysis perhaps it would be better to ask for an alternative that would provide more lifetime income than this product, if any exist.
well if you give them 100k now and at 73 get 12,800 a year . it means almost 18 years later when you are 81 on a non inflation adjusted basis your roi is zero .you gave them 100k and it took 18 years to see your same 100k come back . so you will see your first penny of their money at 82 . .
unless you know how long you will live you don't know what the roi is you are trying to find an alternative to . i mean a balanced fund should have no problem beating that based on average life expectancy but you have no guarantee the principal will last you if you beat Methuselah's record like the annuity . .
Last edited by mathjak107; 09-04-2018 at 01:24 PM..
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