The only potential problem with this plan is that purchasing an annuity at retirement means you'll have to liquidate a substantial amount of assets which would result in a large tax bill if those assets were in equities. If you kept an appropriate percentage in bonds and then liquidated that portion to purchase the annuity, that would probably work out better for you, tax-wise. The nice thing about having guaranteed income like an annuity is that sort of satisfies the fixed-income component of your portfolio and you can then invest the rest that much more aggressively. Just some food for <theoretical> thought!
Totally in agreement here. I think modern day life has left us unfulfilled and pursuing convenience only makes it worse. Try adding some easily overcome obstacles to your life, like grocery shopping at a different store or taking public transportation instead of driving one day. No need to do anything drastic!
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The only potential problem with this plan is that purchasing an annuity at retirement means you'll have to liquidate a substantial amount of assets which would result in a large tax bill if those assets were in equities. If you kept an appropriate percentage in bonds and then liquidated that portion to purchase the annuity, that would probably work out better for you, tax-wise. The nice thing about having guaranteed income like an annuity is that sort of satisfies the fixed-income component of your portfolio and you can then invest the rest that much more aggressively. Just some food for <theoretical> thought!
Post: A theoretical, simplified road to retirement income without a pension. I’ve learned it doesn’t exist.
Link to comment from June 21, 2025
Totally in agreement here. I think modern day life has left us unfulfilled and pursuing convenience only makes it worse. Try adding some easily overcome obstacles to your life, like grocery shopping at a different store or taking public transportation instead of driving one day. No need to do anything drastic!
Post: Runner’s High
Link to comment from October 15, 2022