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.
I posted about this in the retirement forum but no one had an answer, and then the moderator said it should be here instead. It is about retirement, but also about money, so I didn't know where to put it.
I had planned on using about 20 or 25 percent of my retirement income to buy fixed annuities. A fixed annuity gives you a guaranteed lifetime income, sort of like a pension. So, for example, you could give an insurance company $100k and get a lifetime income of $6k per year.
It can be a good way to supplement social security and other income from investments, etc.
I retired recently and one of my retirement accounts is the TIAA traditional account. There is an option to convert this account into a lifetime guaranteed income, similar to a fixed annuity.
I went to the TIAA website to find out what my fixed payout rate would be on this account, and it said 6.18% in big font. So that seems like a good rate.
But when I called TIAA to ask some questions, they told me the 6.18% is NOT guaranteed. There is a much lower rate that is guaranteed, and every year the board of trustees votes on how much should be added on to that lower rate.
The lower rate cannot be found on the web page, only the 6.18% (for me).
I called several times and spoke to several different TIAA consultants, and got several different stories.
Having the higher rate displayed prominently and the lower guaranteed rate nowhere to be found seems deceptive to me.
Does anyone here happen to know the real story about the TIAA fixed lifetime income deal?
I posted about this in the retirement forum but no one had an answer, and then the moderator said it should be here instead. It is about retirement, but also about money, so I didn't know where to put it.
I had planned on using about 20 or 25 percent of my retirement income to buy fixed annuities. A fixed annuity gives you a guaranteed lifetime income, sort of like a pension. So, for example, you could give an insurance company $100k and get a lifetime income of $6k per year.
It can be a good way to supplement social security and other income from investments, etc.
I retired recently and one of my retirement accounts is the TIAA traditional account. There is an option to convert this account into a lifetime guaranteed income, similar to a fixed annuity.
I went to the TIAA website to find out what my fixed payout rate would be on this account, and it said 6.18% in big font. So that seems like a good rate.
But when I called TIAA to ask some questions, they told me the 6.18% is NOT guaranteed. There is a much lower rate that is guaranteed, and every year the board of trustees votes on how much should be added on to that lower rate.
The lower rate cannot be found on the web page, only the 6.18% (for me).
I called several times and spoke to several different TIAA consultants, and got several different stories.
Having the higher rate displayed prominently and the lower guaranteed rate nowhere to be found seems deceptive to me.
Does anyone here happen to know the real story about the TIAA fixed lifetime income deal?
The first annuity you should buy is the one you get by delaying social security to age 70.
Then remember the annuity you describe does not increase for inflationl.
High rate that is not guaranteed is common. Very good that you caught this.
I would go to Vanguard and Fidelity to see what they have to offer. I think Vanguard is a low cost provider.
The poster provided a link... click the blue sentence.
Of course I clicked the link. It did not lead me to the information I am looking for -- what is the guaranteed rate? It is nowhere to be found. I called TIAA about 4 times and got different answers each time.
Is a 6-percent annuity ($6K on $100K) really a 6-percent return? Or, in 16-17-years, after you have your principle back, will you then actually start earning 6-percent? (not including the lost earning potential of your $100K for 16-17-years).
I've got a sizable variable annuity that I am about ready to convert to an income stream. The only thing that has made it a reasonable investment (considering fees, etc) is the abysmal investment returns elsewhere over the 8-years since retiring. Also, I haven't needed the money, which would otherwise just sit there, earning little or nothing.
Is a 6-percent annuity ($6K on $100K) really a 6-percent return? Or, in 16-17-years, after you have your principle back, will you then actually start earning 6-percent? (not including the lost earning potential of your $100K for 16-17-years).
I've got a sizable variable annuity that I am about ready to convert to an income stream. The only thing that has made it a reasonable investment (considering fees, etc) is the abysmal investment returns elsewhere over the 8-years since retiring. Also, I haven't needed the money, which would otherwise just sit there, earning little or nothing.
I was talking about a fixed annuity, not variable. Variable annuities don't usually have any guaranteed rates, but fixed annuities always do.
But TIA hides the guaranteed rate. It's crazy.
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.
