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Old 01-26-2016, 02:58 PM
 
Location: SoCal
13,236 posts, read 6,340,776 times
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Quote:
Originally Posted by mathjak107 View Post
collision insurance is for repairing the car . perhaps you mean 500k in liability insurance .
No I meant $500k collision and $1 million liability. It could be multiple vehicles per accident.
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Old 01-26-2016, 11:25 PM
 
10,817 posts, read 8,067,156 times
Reputation: 17029
Quote:
Originally Posted by TuborgP View Post
The need for insurance is often relative to the value of what you are trying to protect.
Well there's the thing. As DH & I move further into old age and toward death, we are less interested in stuff and in protecting stuff.
Increasingly stuff has less value for us.
Why should we pay to insure it?
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Old 01-27-2016, 03:52 AM
 
71,643 posts, read 71,777,271 times
Reputation: 49240
it is true . we have been making insurance adjustments as we age . we had insured some very expensive works of art for decades . we insured our camera gear for years .

today we eliminated that insurance and switched to having an LTC policy .

it is all a question of priority's when it comes to insurance and chances of use . .
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Old 01-27-2016, 11:22 AM
 
426 posts, read 188,926 times
Reputation: 267
Did anybody think about buying immediate annuity just for wife?
It seems to make sense, as 1) rates are much higher, than for the joint 2) when husband dies, she gets his SS + 401k, etc.
Usually husband dies first. But even if she dies first, he gets her 401k.
Is that a good idea, please?
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Old 01-27-2016, 11:38 AM
 
Location: Central Massachusetts
4,800 posts, read 4,850,322 times
Reputation: 6379
Quote:
Originally Posted by Maple47 View Post
Did anybody think about buying immediate annuity just for wife?
It seems to make sense, as 1) rates are much higher, than for the joint 2) when husband dies, she gets his SS + 401k, etc.
Usually husband dies first. But even if she dies first, he gets her 401k.
Is that a good idea, please?

I did about 4 years ago consider that. After looking at the cost and my current retirement plan it didnt make sense. Three pieces of my retirement income are COLA protected and have survivor benefits so it didn't make economic sense. If circumstances were different a portion of the savings (provided it were large enough) could make sense but...... I am not quite as sure that it is really that much of a benefit. If there is a portion of income that does not have survivor benefits then that would be something to consider more.
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Old 01-27-2016, 11:50 AM
 
71,643 posts, read 71,777,271 times
Reputation: 49240
Quote:
Originally Posted by Maple47 View Post
Did anybody think about buying immediate annuity just for wife?
It seems to make sense, as 1) rates are much higher, than for the joint 2) when husband dies, she gets his SS + 401k, etc.
Usually husband dies first. But even if she dies first, he gets her 401k.
Is that a good idea, please?
the first to likely die should get the single annuity with life insurance for the spouse to get. . . that way the spouse gets nice tax free insurance unlike the annuity .
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Old 01-27-2016, 11:51 AM
 
Location: Naples, FL
339 posts, read 320,311 times
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Quote:
Originally Posted by misscross View Post
DH and I are early 40s and nowhere near retirement age, I'm posting to get some good ideas/tips from actual retirees.

I think we've taken all the usual advice regarding retirement planning from the usual magazines/web sites. we've contributed to 401K plans since age 22 and max out on those plus IRAs every yr. Now also maxed out the 529 college savings plans for both kids which is about $150k total and they're both under 5 so no college costs yet for a long while. We own primary residence valued about 1 mil which is about 50% paid off. We are not business owners, just salaried workers.

Our questions is what else do we do now in terms of planning for our retirement?
1) Rental properties? several friends are very into owning rental properties as an investment and additional income stream, but I am wary of being a small time landlord.

2) pay off house with plan to do some type of reverse mortgage in retirement? not sure it's a good idea to tie up $1mil in a house given current low interest rates.

3) Annuities? Our financial adviser has suggested annuities but we haven't taken the plunge. How has that worked for anyone here and do you recommend any particular web site for researching annuities?

4) LTC? I am curious if we should be looking into Long Term Care insurance or if that that is too early?

I'm 55, nearing early retirement. I work for a financial services company and have an advisor I like and trust.


My advisor encouraged me to purchase life insurance which has a long term care rider. As I near my end of days, the policy will pay for LTC if needed. That, of course, will reduce the life insurance payoff but I and my family are covered either way. You are not too young to purchase - your premiums will be low.


My advisor also had me purchase a couple annuities. They have guaranteed payouts - and can never be worth less than the amount invested.


I think these were two good options for me in addition to REITS (real estate investment trusts), bonds and mutual funds.


I have been a landlord of 4 properties, none by choice. It is a PITA. Tenants can be sketchy, things constantly break, the property suffers wear and tear. There are significant disposal costs (i.e. sales commissions) unless you have your RE license. I wouldn't recommend it.


Get a good financial advisor and consider his advise. You could buy into REITs, and perhaps a mix of stocks and bonds. I wouldn't pay off your house.


You are doing financially very well at this point. I am envious of your college savings.
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Old 01-27-2016, 01:25 PM
 
426 posts, read 188,926 times
Reputation: 267
Quote:
Originally Posted by mathjak107 View Post
the first to likely die should get the single annuity with life insurance for the spouse to get. . . that way the spouse gets nice tax free insurance unlike the annuity .
Thank you.
I know the place to go for annuities.
What is the proper place to look for LI, please?
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Old 01-28-2016, 09:27 AM
 
Location: LTCShop.com
236 posts, read 113,265 times
Reputation: 151
Quote:
Originally Posted by Sandsam View Post

My advisor encouraged me to purchase life insurance which has a long term care rider. As I near my end of days, the policy will pay for LTC if needed. That, of course, will reduce the life insurance payoff but I and my family are covered either way. You are not too young to purchase - your premiums will be low.

Life insurance policies with a long term care rider cost 2x to 4x what a comparable long term care policy would cost.
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Old 01-28-2016, 10:47 AM
 
426 posts, read 188,926 times
Reputation: 267
Quote:
Originally Posted by mathjak107 View Post
thanks and same to you and yours .

my wife was a widow when i met her . her views now as to what she wants are very different from the first time she had a bomb dropped on her .

in her world she would she would love to have a single premium immediate annuity for income every month , life insurance guaranteeing heirs and perhaps wellesley income for inflation adjusting income and the wants in life .

to her that would be her perfect plan . not mine but hers . but eventually i just may have to gravitate a bit in her direction . perhaps locking in the non discretionary expenses with that check in the mail box . lots of women especially have that image of themselves running out iof money before they run out of time and being that homeless bag lady .

in my wifes case after her husband died she had a pile of investments she had no desire to deal with and she saw someone at her bank to help her invest it ,.

well the guy threw her in dot coms and tech and she lost 1/2 the money .

so now she is very gun shy about what she may be left with as far as how the income is generated and what it is dependent on ..


she gives me free reign to do as i see fit but that is with me in the picture .


i likely wouldn't make any changes until i was around 70 and if i did i would ladder the spia's .
"...I would ladder the spia's." Would you explain, how it works and who may benefit from such a ladder, please.
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