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.
Wow, there is a boat-load of info here!
Anyway, I'm 64 years old, my wife is 53. I'm employed full time, my wife does not work. We have about 900-950K in savings, 401K, small older roll-over IRA some cash and a paid-off rental unit providing about $700 a month and a $430.00 a month pension the started when I turned 60.
I've been looking at what happens when I retire and am a lot more confused than when I first looked into this. First, I've been looking at Fixed-index annuities as well as a professionally managed setup for my accounts. At this point, I just don't know which way to go. Money is currently with Fidelity and Vanguard, the bulk at Vanguard. The annuity inquiry has led to a lot of phone traffic as well as them coming to the house. Not pushy or anything but I find annuities seem to change depending on how you look at them, like a kaleidoscope. Managed account, all I've spoken to is Fisher Investments. Not a bad spiel, I'm just a bit nervous about them having my interests in the forefront.
So the real issue here is that first level decision, are annuities, fixed-index annuities a bad choice? I am somewhat reluctant dealing with an insurance co and having to basically give them my money, 2, the managed account approach. Fisher sounds good but like a minimum 500K portfolio but at least they actually managed the account without withdrawal capability.
From what I'm beginning to read here, Fid and Vanguard seem to have some pretty decent services too and maybe I should be looking to them for assistance?
I guess what I'm looking for here is a bit of a nudge in either direction so that I can get down deep into my planning. Mostly, I want to be sure my wife is OK if I take the early train.
If you'd like to see some discussions about Fisher Investments, go to bogleheads.org. Type "fisher" in the box at the upper right and click on "search." The results are several threads in which the company is discussed. Another site with past threads discussing Fisher is early-retirement.org. You can do a similar search there.
You can also search both sites for threads about annuities. There's a lot of discussion on those, as well. If you think there's information overload here on C-D, you're in for more of the same on these sites! However, I find it very helpful to see what others have experienced and try to learn from them.
Fisher info was a big eye-opener. Glad I'm at least trying to look like I'm doing my homework. I am leaning to some small annuities that will kick in say about 5 years from now and to live off my investments for the first couple to three years of retirement. It looks like I have about a month of reading through forums to get a good general feeling for what I'm doing.
Thanks for the replies, a great start.
I do not like annuities at all. Most have very high fees and commissions. Since you are so confused I would do nothing for a while. Do a lot of research on annuities before handing over your money. They are insurance companies and you cannot get your money back. If they go under, how much does your state insure against failure?
Buyer beware. http://wpfau.blogspot.com/2012/02/ar...-interest.html
Annuities do make me shy away due to the fees and complexity of the products. The insurance companies that have been presented to me are strong and stable enough for me to not be concerned at that level. The whole issue of not being able to get your money back is of ultimate concern but so is being able to provide for my wife should I go early (quite possible, poorish health). I haven't even gotten clean easy to understand quotes from these people. If my 7 year old granddaughter can't understand it, I don't want it.
My sister has an Allianz deferred annuity. I spent a year trying to figure it out. I brought it to several financial advisors who could not understand the terms. This was from her 403B teachers fund. At 70 she will have to annuitize due to RMD's and we are choosing 10 years just to get the money out. Also, her husband might have to apply for Medicaid. If this was a lifetime payout it would be counted as an asset.
For now if I were you I would just wait for a while. Find a fee only financial advisor and get some unbiased advice. The insurance companies are chopping at the bit to earn their commission off your money.
There is not a single answer here for you as there are too many personal factors involved - especially on the expense side. How do you want to live: Simply or with overseas vacations and fancy dinners? How is your health and do you and your wife have enough to cover long term care? Does life insurance coverage make sense on you and/or your wife? If so, how much? IOW - have you made a determination that your income and wealth (indexed to grow - hopefully) covers your expenses (inflated over time)? This is the bottom line question you need to have an answer to.
It usually costs nothing to get a consultation with a financial analyst who currently works with either Vanguard or Fidelity (or both) where you are already invested. They will help you work through important questions like those I raised above plus so many more. They do this for a living. Most of us here do not. While CD might be a good place to get some of your questions answered, I feel there is too much at risk to not get professional advice before you actually take action. After that, if you feel comfortable enough managing your money to meet your lifestyle needs as you continue to age, then go for it. If you think it might be worth the fees it takes to have someone you trust manage your portfolio for you, then take that approach.
I had a "professional" consultation with a Vanguard advisor. I like Vanguard but they will tell you to invest a mix of stocks, bonds and cash no matter what interest rates are doing. They want you to keep your money with them. You need to find a Fee Only Financial Advisor that is not biased and does not earn a commission. Always ask "how much commission will you earn on my money"?
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.
However, I find it very helpful to see what others have experienced and try to learn from them.
