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Old 02-11-2016, 07:03 PM
 
71,487 posts, read 71,652,652 times
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My opinon is avoid all this complex fee heavy stuff and just buy a simple immediate annuity. Nothing more simple. Like buying a cd.

It can take days to unravel these complex plans and when you do what you think you are getting is not the real deal.

Like the above plans that guarantee you a min of 5% but you never get that balance . You get 1/10% of 5% a year added to your annuity payment. You don't actually ever get 5% a year in a balance that is yours
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Old 02-12-2016, 06:38 AM
 
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Quote:
Originally Posted by elizabeth224 View Post
Our financial planner suggested this saying it had a guaranteed 5% interest. Fees are 2 1/2%. Has anyone had any experience with this? We just recently retired and want to try to avoid anything high risk. Thanks
While i don't make personal recommendations , for someone risk averse a mix of a conservative fund like vanguard wellesley income and an single premium immediate annuity can be a nice package.

It can be refined even more by using a single premium whole life policy too so your spouse or heirs get 100% tax free money. A joint annuity to a spouse is taxable. A single annuity with life insurance pays more and provides tax free money with no rmd's.

Wellesley provides the inflation protection
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Old 02-12-2016, 08:03 AM
 
Location: Eastern UP of Michigan
1,202 posts, read 682,104 times
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When I first started to think about other "options" for retirement income. Those other options were just too dang confusing for me to understand.


Started to read of SPIAs and am very happy that we took a modest chunk and opened one. We have no kids so no real concern of leaving that amount to anyone. Took it out in Julyish and definitely doing a happy dance at this time with the market downdraft.
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Old 02-13-2016, 04:14 PM
 
292 posts, read 172,232 times
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Thanks to everyone! We read all of your replies and after thinking it through will probably pass on this. We need to fully understand something before jumping in. And, this sounded a little to complicated for us. We will also look at fee based advisors for an opinion since we are with ML now. Really like our advisor, but now that we are retired we have to consider the fees involved. Especially with investments the way they are now. We realize now, for us, it's safety over growth.
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Old 02-13-2016, 06:47 PM
 
Location: Florida
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You should get several suggestions from different brokers as in general these are expensive. 2.5% is very expensive.
Go to the Vanguard Mutual Fund site and price out an online annuity. I think you will find it less expensive and better for you.
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Old 02-13-2016, 07:04 PM
 
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Simple vanguard immediate annuity's are the cheapest way to go . But immediate annuity's are cheaper because they do not offer the options of those in the 2.50% expense range.

In fact looking at the cheaper fidelity annuity's when you look under the hood you see they are cheaper then 2.50% because they include no death benefit which is an add on . It is standard in these other products.

Once you start with money for heirs or death benefits , step ups in draw rate. 2x the payout for long term care and bonus dollars , these are all options you do not get with basic spia's so yep they will cost you if you want them.
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Old 02-14-2016, 10:56 AM
 
Location: Columbia SC
8,947 posts, read 7,725,979 times
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Math

I am 73, no spouse, no concern about leaving anything to anyone, no debt, and never liked annuities. But that said, for exploration purposes, what type/name annuities would you suggest one look at?
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Old 02-14-2016, 01:34 PM
 
2,591 posts, read 5,284,814 times
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Quote:
Originally Posted by johngolf View Post
Math

I am 73, no spouse, no concern about leaving anything to anyone, no debt, and never liked annuities. But that said, for exploration purposes, what type/name annuities would you suggest one look at?
At your age, $100K put into a single premium immediate annuity gets you $723/ month until you die. What alternative was it that you liked more?
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Old 02-14-2016, 04:19 PM
 
Location: Columbia SC
8,947 posts, read 7,725,979 times
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Quote:
Originally Posted by rational1 View Post
At your age, $100K put into a single premium immediate annuity gets you $723/ month until you die. What alternative was it that you liked more?
I have no alternatives. I am learning/exploring. When I had a wife annuities did not seem attractive neither did reverse mortgages. Now that I am alone (she died), the ground rules have changed so I am exploring and not against changing/modifying earlier held beliefs.

A couple of hundred $K, is not an issue for me, but the tax ramifications as in what do I sell to purchase with most certainly could be, but another subject.

I have managed my financial affairs with primarily fee based advisors and no load Fidelity and Vanguard stuff.

That said, I am not about to start calling annuity sales people........LOL
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Old 02-15-2016, 03:51 AM
 
71,487 posts, read 71,652,652 times
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Quote:
Originally Posted by johngolf View Post
Math

I am 73, no spouse, no concern about leaving anything to anyone, no debt, and never liked annuities. But that said, for exploration purposes, what type/name annuities would you suggest one look at?
Vanguard has nice simple immediate annuity's
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