Investing nearing retirement: are Annuities in your retirement plans?

[Boomer]

I have an annuity with TIAA CREF. I added money to it over the years as my pension from the six years i taught college chemistry was with them. I chose a twenty year guarantee...pays me as long as I live but if I die before twenty years, my wife continues at full payment until she is 85. If she has passed away, my son will get the payment. It gives me a nice monthly payment that I can depend on so if Trump discontinues Social Security, I have this as a backup.

 

[Danno]

Amazed, not amazed how quickly threads become political.
Smh

 

[Danno]

I have an annuity with TIAA CREF. I added money to it over the years as my pension from the six years i taught college chemistry was with them. I chose a twenty year guarantee...pays me as long as I live but if I die before twenty years, my wife continues at full payment until she is 85. If she has passed away, my son will get the payment. It gives me a nice monthly payment that I can depend on so if Trump discontinues Social Security, I have this as a backup.

Amazed, not amazed how quickly threads become political.
Smh

 

[Boomer]

Not trying to be political. Just two days ago on the news I saw a member of the administration say that even SS payments could be on the chopping block. Just responding to that piece of news.

 

[Pablo]

Not trying to be political. Just two days ago on the news I saw a member of the administration say that even SS payments could be on the chopping block. Just responding to that piece of news.

Not even true. Knock it off.

No to the OP

Over 7 figures? $XX,XXX,XXX?
Definitely don’t need an annuity. A trust could be handy. A good balance of income and growth will be your best friend regardless.

 

[I<3oil]

Nah

 

[zzyzzx]

And there is nothing to pass on as inheritance.

Not an issue for most people today since very few people have kids.

 

[LDB]

I am going to be retiring this year, I currently have over 7 figures in my IRA and 401K, no pension. Was talking to a friend of mine he is close to retirement also. He asked me my thoughts about putting some of your money into an Annuity. Annuities are sold to be guaranteed income for Life. Anyone here that have experience with Annuities you have any regret pros or cons.

I sold an albatross. Uh, rent house. I put 90% of the proceeds in an annuity. I get roughly 110% monthly income compared to the amount of rent from the house. I pay 0% of that money to school tax, property tax, MUD tax, HOA, structure insurance and assorted maint/repair. The other 10% is in my Marcus "high" yield savings account. The monthly amount goes up annually at anniversary date. My daughters are listed beneficiaries so when I'm gone they get the remainder. Worked with a great guy (recommended) to set it up and great follow-up since then. Total set and forget. Lazy me loves that. Could be negatives I suppose but I am fully satisfied with my decisions. Good luck with yours.

 

[Dave Hess]

Zero possibility I would own rental property, but that’s just me.

 

[LDB]

Zero possibility I would own rental property, but that’s just me.

Inherited or never would have had it. Kept it about 10 years and decided I was old enough to make the change and it work. So far it's 100%. Will never have another rental. Unless I inherit another one anyway.

 

[Dave Hess]

Not even true. Knock it off.

No to the OP

Over 7 figures? $XX,XXX,XXX?
Definitely don’t need an annuity. A trust could be handy. A good balance of income and growth will be your best friend regardless.

As always you give good advice to manage the money yourself.

 

[jetman]

NO

 

[scoot]

As always you give good advice to manage the money yourself.

I pay 2% for activity managed account , it's hard enough for the pros let alone dart throwers . I don't want to spend my time doing constant research and second guessing . I have fun money to keep things interesting throwing darts .

 

[gfh77665]

I am going to be retiring this year, I currently have over 7 figures in my IRA and 401K, no pension. Was talking to a friend of mine he is close to retirement also. He asked me my thoughts about putting some of your money into an Annuity. Annuities are sold to be guaranteed income for Life. Anyone here that have experience with Annuities you have any regret pros or cons.

No, no, and no!

 

[PandaBear]

Personally I wouldn't, because people managing it has to do a lot of work and that means cost would be high. I personally would just be using index fund and diversify my portfolio with low cost ETF, gold fund, and some short term T bills (within 2 years), to balance out the risk and reward, then just use what I need reasonably.

Nothing is certain in investment except expenses and costs. Just like a bank needing to pay for offices and staffs, brokerages and funds need to spend a lot to maintain their customers expectation and that does nothing for our results.

Personally I like how Ray Dalio design his all weather portfolio to have stable and consistent growth slow and steady, rain or shine, instead of boom and bust. I don't invest in his but I model my portfolio with his goal in mind.

 

[PandaBear]

I have an annuity with TIAA CREF. I added money to it over the years as my pension from the six years i taught college chemistry was with them. I chose a twenty year guarantee...pays me as long as I live but if I die before twenty years, my wife continues at full payment until she is 85. If she has passed away, my son will get the payment. It gives me a nice monthly payment that I can depend on so if Trump discontinues Social Security, I have this as a backup.

Typically this is not how people cross shop investment. People typically look at risk reward over 1,3,5,7,10,20 years between different investment with the same principal and see how they perform over a long period of time.

 

[CarlB]

I am going to be retiring this year, I currently have over 7 figures in my IRA and 401K, no pension. Was talking to a friend of mine he is close to retirement also. He asked me my thoughts about putting some of your money into an Annuity. Annuities are sold to be guaranteed income for Life. Anyone here that have experience with Annuities you have any regret pros or cons.

Annuities are sold by folks making commission on them. They don't beat normal ROI.

 

[Leo99]

I looked at annuities. Very interesting. It was something like it pays my wife 6% a year for 30 years. If she dies I get nothing. But if she takes the annuity at 5%, it will give me a payout. There were other possibilities. It seemed that it would be better to keep the entire principal and take our chances at getting the same returns as the annuity was offering. Even if you don't quite match the annuity returns, you still have your chunk of principal.

 

[Pablo]

I looked at annuities. Very interesting. It was something like it pays my wife 6% a year for 30 years. If she dies I get nothing. But if she takes the annuity at 5%, it will give me a payout. There were other possibilities. It seemed that it would be better to keep the entire principal and take our chances at getting the same returns as the annuity was offering. Even if you don't quite match the annuity returns, you still have your chunk of principal.

That’s a healthy perspective

 

[Donald]

I am going to be retiring this year, I currently have over 7 figures in my IRA and 401K, no pension. Was talking to a friend of mine he is close to retirement also. He asked me my thoughts about putting some of your money into an Annuity. Annuities are sold to be guaranteed income for Life. Anyone here that have experience with Annuities you have any regret pros or cons.

Annuities have a high commission for the person selling it to you.

Fee paid (project or hourly) fiduciary financial planner to map out a plan.

Roth conversions to reduce taxes in retirement.