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Old 12-10-2016, 08:41 AM
Status: "Gaining Stability." (set 11 days ago)
 
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How much do I need to put away each month to draw $1000 per month during retirement? It will be saved over 22 years. Thank you.
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Old 12-10-2016, 08:44 AM
 
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no one really knows at this point since inflation is the wild card
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Old 12-10-2016, 09:10 AM
 
Location: Idaho
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Very highly variable, as mathjak107 says, but right now, in this day and age, as of several months ago, the people who manage my 403(b) will sell me a single-life immediate annuity that pays about $1,100/month for $200,000. This is based on my current age, (65), and would be higher if I delayed till I'm older.


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Old 12-10-2016, 09:26 AM
 
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you can't go by that spia because they can pay out far more from the returns than you can get . in fact they get far more than we can .

if 25 of us bought a 25 year muni today all we get is the interest rate we signed on for 25 years later which is quite low .

but if we had a deal that for everyone of us who died our bond goes in the pot , if one of us died each year ,last man standing gets an incredible return from those same bonds because of mortality credits .

insurers can see bigger returns on little interest and gains just for that reason . spia's today pay as much as 40% more out than you can safely draw your investments ..

so it is hard for your portfolio to duplicate the guarantees the insurer gets because they know how many people a year will die . they just can't tell us who

they are actually invested in dead body's too.

if you figure a 60/40 mix today , you can safely draw about 4% before counting on human intervention . so about 300k today could safely do 1k a month initially .

Last edited by mathjak107; 12-10-2016 at 09:35 AM..
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Old 12-10-2016, 09:26 AM
 
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Quote:
Originally Posted by volosong View Post
Very highly variable, as mathjak107 says, but right now, in this day and age, as of several months ago, the people who manage my 403(b) will sell me a single-life immediate annuity that pays about $1,100/month for $200,000. This is based on my current age, (65), and would be higher if I delayed till I'm older.


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Is that a lifetime payout or a time period certain?
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Old 12-10-2016, 09:39 AM
 
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that is lifetime i would think at that rate . i have seen them as high as a 6.50% payout for a 65 year old single

https://www.immediateannuities.com/i...es-step-1.html
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Old 12-10-2016, 09:54 AM
 
Location: Idaho
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TuborgP, that's a lifetime payout. Fixed. So, inflation could really make that amount pitiful in 20 years. They do have a variable option, but the payout is less. This is from TIAA-CREF, (but we're not going to turn this into a TIAA-CREF thread . . . right!). I'm strongly considering doing this, as a supplement to what I get from SS.


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Old 12-10-2016, 10:04 AM
 
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Quote:
Originally Posted by volosong View Post
TuborgP, that's a lifetime payout. Fixed. So, inflation could really make that amount pitiful in 20 years. They do have a variable option, but the payout is less. This is from TIAA-CREF, (but we're not going to turn this into a TIAA-CREF thread . . . right!). I'm strongly considering doing this, as a supplement to what I get from SS.


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I have neighbors who have/are converting most of their investment money into 20 year annuities. I found that interesting.
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Old 12-10-2016, 10:11 AM
 
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i would never do anything but lifetime . without the full mortality credits i rather just avoid them .

it is the extra dough from the full mortality credits in the early years that really make them work nice with your equity's . you can go longer without selling equity's to refill cash and bonds again .
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Old 12-10-2016, 10:15 AM
 
Location: SoCal
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I wonder if annuity is better for later when one really loses one ability to invest. Say after age 80.
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