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(25,830 posts)
43. Yes, rates were somewhat higher then.
Sat Jun 12, 2021, 11:41 AM
Jun 2021

They were purchased in 2012. They included a guaranteed minimum return, which was locked into the sum used to calculate my payout. That can't go down. (I'll ignore the possibility of something truly catastrophic happening.)

I just ran the numbers using this calculator: https://www.calcxml.com/calculators/how-long-will-my-money-last?skn=#results

If there is no growth whatsoever in the current value of annuity 1, it will last 17 years, at which point they are still obligated to pay my guaranteed benefit. At 6% growth, it would last pretty much forever. Annuity 2 will last 19 years with zero growth, as it's worth slightly more at this point, although the same sum of money was invested in each. Any residual value depends on the performance of each fund while I am still alive. On one hand, it would be nice to live long enough to get into their money, as my financial guy has said, but on the other I wouldn't mind leaving a bit to my son. Although I seriously doubt I will have spent down all my assets by the end of my life, and even if I do there would be a life insurance policy with a reasonable, although not huge payout.

What I don't get about the 4% rule, is increasing your payout each year depending on that year's inflation. I only every few years find a need to slightly increase what I take from my investment portfolio. My investments are in three different accounts. Currently I'm taking money out each month from the largest of the three. Right now the value of that fund is such that my draw is just over 4% of that sum. The other two are a Roth IRA, and a regular retirement account. I'm now doing RMDs from that second one.

Anyone looking at buying an annuity today only needs to be concerned about exactly what you can purchase today, at today's rates. What I could get nine years ago doesn't matter any more. I just want people to understand that all annuities are not a rip-off, which is the sentiment I often see here.

Sounds like you are doing quite well with your investments. Keeping just the one individual stock makes absolute sense. Especially if it's generating a reasonable income from it. Will it to your children, or whoever, but advise them to sell soon after inheriting it.

How much you got? Asking for a friend. marble falls May 2021 #1
$1,900,000,000,000 give or take a few trillion nt doc03 May 2021 #13
So what's your motive for more income? ... marble falls May 2021 #14
Greed nt doc03 May 2021 #19
I posted before I was finished, please read it again, I made a serious reply. marble falls May 2021 #23
There are plently of guaranteed investments returning way more than 0.3 % drray23 May 2021 #2
Where in the world are you seeig a guaranteed 3%? I believe nowhere. NoRethugFriends May 2021 #3
thats why you have to work with advisors and financial managers. drray23 May 2021 #6
Looks like you have TIAA Traditional Abnredleg May 2021 #8
yeap. so am i (in academia) drray23 May 2021 #9
elsewhere its also offered under a different name. drray23 May 2021 #11
I am not familiar with the instrument Tomconroy May 2021 #17
well yes its not meant for you to get high returns. drray23 May 2021 #20
I think the company has figured out Tomconroy May 2021 #24
It appears you have a misunderstanding of what TIAA does and what an Annuity is. A HERETIC I AM May 2021 #37
He wrote .3% not 3% rickford66 May 2021 #21
No I wrote 3 % drray23 May 2021 #26
I put a group named Blooom in control of my 401(k), which is with another company. NBachers May 2021 #4
Are you retired? A HERETIC I AM May 2021 #36
I was reading an article today that Tomconroy May 2021 #5
I'm 71 and have been retired for 19 years. multigraincracker May 2021 #7
Send it to me in bitcoin. Chainfire May 2021 #10
I did look it up. The interest on US Savings bonds Tomconroy May 2021 #12
Thanks for the input. I have my IRAs Invested in Vanguard and T.Rowe Price doc03 May 2021 #18
Savings bonds you can cash out early. Tomconroy May 2021 #22
Remember the old days when they'd roll them over if you didn't cash them in? marble falls May 2021 #25
I went thru the 2008 and 1984 multigraincracker May 2021 #29
Odd the EE savings bonds suck so much (these are the ones without the inflation adjust) progree May 2021 #27
I do not believe that annuities are a good investment Tomconroy May 2021 #15
Annuities are essentially insurance products. A HERETIC I AM May 2021 #35
There are different kinds of annuities. PoindexterOglethorpe May 2021 #38
Some may compare annuity yields to those of bonds and CD's without understanding the differences progree Jun 2021 #40
My annuities will not die with me, if there is still any value left. PoindexterOglethorpe Jun 2021 #41
I'm guessing interest rates and annuity yields were considerably higher when you bought progree Jun 2021 #42
Yes, rates were somewhat higher then. PoindexterOglethorpe Jun 2021 #43
On the 4% rule - progree Jun 2021 #45
You can get 4% - 5% guaranteed return tax free calguy May 2021 #16
I haven't seen anything like 4% - 5% anywhere for a long long time, and municipal bonds are not a progree May 2021 #28
We might not be talking about the same thing. calguy May 2021 #30
Can new investors buy these, e.g. the EVM Eaton Vance California Municipal Bond Fund progree May 2021 #31
You just have to have an account with a stock broker calguy May 2021 #32
Thanks much 😂 I just went to Vanguard.com (where I have an account) progree May 2021 #33
Everything has risk bucolic_frolic May 2021 #34
I want to strongly second what bucolic_frolic said. PoindexterOglethorpe May 2021 #39
I have a majority of my money in four Vanguard funds bif Jun 2021 #44
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