I recognize that financial planning isn't a one size fits all strategy. I assume we all accept that reality. I'm no fan of annuities and my calculations say they are a bad deal for most. However, the peace of mind that it gives some cannot be underestimated. I'd never buy one because as Roth states, I can create my own income streams at a much lower cost while retainingcontrolof my money. Some people may think an annuity is beneficial to them and it's the job of the advisor to point out all the options available and help them chart the best course. All that said, I understand the point made by Roth but I have no issues if folks want annuities if it makes them sleep better at night.
One can only be miserable for so long until that becomes who you are
..Just a miserable curmudgeon. You will be miserable even when it recovers claiming it didn't do sa fast enough blah, blah. The more normal folks may even panic at first but will adjust as they realize the worse case scenario is still manageable. I'd like to think I'm not a perpetual curmudgeon and after some hand ringing I'd go on with life.
My parents are in their late 70s and we are in our mid fifties. I made our parents prepare wills and POAs. I told them I don't need to be guessing about their wishes and my job was to execute exactly as they wanted. My sister lives in England and she told them she trusts me to handle things. We both are ok financially and anything we inherit from our parents is gravy in the biscuit. I was clear with my parents that if they left me a mess to figure out, I'd let it all go the state, so have a freaking plan! Got the estate planning done post haste. Now, its a non issue.
Companies thrive and some fail, but for the most part, we know they sell a product. Based on their ability to sell this product for less than it costs, they earn profits that the investors hope will trickle down to them. Precious metals has some value and you can actually hold measure the item. For these coins, we know the story and it is likely one that doesn't end very well. Blockchain may very well have some type of value in transaction verifications and so forth, but the blind faith put into these coins make little sense to me. It is clearly hype, yet some have made millions!
Great insights for discussion. I'll attempt to answer both questions from the lens of simplicity with no AI input. What should the goal for financial planning be: insee this as three fold, and the order of importance not meaningful but can be tailored depending on the individual. A) Education and informing , B) Protection of assets and C) Optimizing. I can go on and on about how each three fits in, but this community is savvy enough to get my point. Success is measured by the sense of peace that the individual receiving the guidance feels. Its not the size of the portfolio, or the amount of taxes saved...its simply the peace of mind that comes from knowing you have the bases covered for what matters most. After all, it is still just personal finance.
While some say this is abad idea for various reasons, mostly related to the budget deficit, I think it's more nuanced than that. If people pull money out and spend it, it could create increased economic activity which could create an economic boom and in turn raise more revenue. I'm not saying it's a slam dunk, it's just that when you pull one lever, there are intended and unintended impacts. No one answer is correct.
Hi Bogdan, when I see the posts you referenced here on social media, I simply roll my eyes. Most of those are by insurance sales people with no real clue about financial planning. I guess you are what you read and follow...meaning those who follow that advice are destined to be broke while those who follow advice from writers like Jonathan will have a chance at a decent retirement. Appreciate the work you do here.
Can't argue there. The other thing is if the cost sre relatively close, I'd likely opt for COBRA sinceI'malreadyfamiliarwith this plan. Most don't know enrollment isn't automatic and you must opt in to remain in COBRA.
Hey Dick, I think the simplicity of this plan is exactly what makes it so easy to pull off.
First, regarding health insurance: since my 50-week severance package includes health coverage, we are set for a full year at our current rates. After that, I plan on taking the six additional months of COBRA. That gets us to 18 months total and takes us almost to age 59. From there, I will jump on an ACA plan. I know I can't really game the system to get a lower premium because I want to prioritize Roth conversions. I can’t have my cake, eat it, and expect to lose weight too!
Since Roth conversions trump ACA premium savings in the long run, we will just buy an ACA plan that covers nothing beyond catastrophic incidents. That means we might be on the hook for up to roughly $14,000 per year in max out-of-pocket expenses. That adds up to about $100,000 over six years, which I already have set aside in the cash bucket. My employer kicks in about $400 per month toward a health plan in retirement, so I figure I can get coverage for about $1,200 per month after that credit. My wife is an RN, and if we work part-time, we can easily earn enough to cover most of that.
As for the annuity question, it is just not for me. When I compare the rates of return to the guaranteed income, the math never works in my favor. I am comfortable with market risk because of how we are set up. Having a zero mortgage and a decent cash bucket is my primary way of mitigating risk. When Social Security kicks in at age 65, that will be our "annuity."
The biggest risk I see is health coverage. If things get really tight, one of us can always go back to work, though we hope it won't come to that. We have about eight years of expenses socked away entirely separate from retirement funds. It feels like I made my own annuity and kept my money too. I guess I can eat cake and not gain weight after all!
Comments
I recognize that financial planning isn't a one size fits all strategy. I assume we all accept that reality. I'm no fan of annuities and my calculations say they are a bad deal for most. However, the peace of mind that it gives some cannot be underestimated. I'd never buy one because as Roth states, I can create my own income streams at a much lower cost while retainingcontrolof my money. Some people may think an annuity is beneficial to them and it's the job of the advisor to point out all the options available and help them chart the best course. All that said, I understand the point made by Roth but I have no issues if folks want annuities if it makes them sleep better at night.
Post: Better Alternatives to Buying an Annuity
Link to comment from June 11, 2026
One can only be miserable for so long until that becomes who you are ..Just a miserable curmudgeon. You will be miserable even when it recovers claiming it didn't do sa fast enough blah, blah. The more normal folks may even panic at first but will adjust as they realize the worse case scenario is still manageable. I'd like to think I'm not a perpetual curmudgeon and after some hand ringing I'd go on with life.
Post: Would You Be Miserable?
Link to comment from June 9, 2026
My parents are in their late 70s and we are in our mid fifties. I made our parents prepare wills and POAs. I told them I don't need to be guessing about their wishes and my job was to execute exactly as they wanted. My sister lives in England and she told them she trusts me to handle things. We both are ok financially and anything we inherit from our parents is gravy in the biscuit. I was clear with my parents that if they left me a mess to figure out, I'd let it all go the state, so have a freaking plan! Got the estate planning done post haste. Now, its a non issue.
Post: Time to share our financial info with children?
Link to comment from June 8, 2026
Companies thrive and some fail, but for the most part, we know they sell a product. Based on their ability to sell this product for less than it costs, they earn profits that the investors hope will trickle down to them. Precious metals has some value and you can actually hold measure the item. For these coins, we know the story and it is likely one that doesn't end very well. Blockchain may very well have some type of value in transaction verifications and so forth, but the blind faith put into these coins make little sense to me. It is clearly hype, yet some have made millions!
Post: A $1,000 Conversation With My Daughter
Link to comment from June 8, 2026
Great insights for discussion. I'll attempt to answer both questions from the lens of simplicity with no AI input. What should the goal for financial planning be: insee this as three fold, and the order of importance not meaningful but can be tailored depending on the individual. A) Education and informing , B) Protection of assets and C) Optimizing. I can go on and on about how each three fits in, but this community is savvy enough to get my point. Success is measured by the sense of peace that the individual receiving the guidance feels. Its not the size of the portfolio, or the amount of taxes saved...its simply the peace of mind that comes from knowing you have the bases covered for what matters most. After all, it is still just personal finance.
Post: Reflections on a Quiet Failure
Link to comment from June 8, 2026
Seminar boy! A new financial designation Dan?
Post: Setting the Hook, Reeling In the Fish
Link to comment from June 3, 2026
While some say this is abad idea for various reasons, mostly related to the budget deficit, I think it's more nuanced than that. If people pull money out and spend it, it could create increased economic activity which could create an economic boom and in turn raise more revenue. I'm not saying it's a slam dunk, it's just that when you pull one lever, there are intended and unintended impacts. No one answer is correct.
Post: Should Retirees Get a Temporary Flat Tax Window on IRA and 401(k) Withdrawals?
Link to comment from May 19, 2026
Hi Bogdan, when I see the posts you referenced here on social media, I simply roll my eyes. Most of those are by insurance sales people with no real clue about financial planning. I guess you are what you read and follow...meaning those who follow that advice are destined to be broke while those who follow advice from writers like Jonathan will have a chance at a decent retirement. Appreciate the work you do here.
Post: Retirement Accounts
Link to comment from May 17, 2026
Can't argue there. The other thing is if the cost sre relatively close, I'd likely opt for COBRA sinceI'malreadyfamiliarwith this plan. Most don't know enrollment isn't automatic and you must opt in to remain in COBRA.
Post: Retiring before age 65? COBRA vs ACA plan- important decision
Link to comment from May 14, 2026
Hey Dick, I think the simplicity of this plan is exactly what makes it so easy to pull off. First, regarding health insurance: since my 50-week severance package includes health coverage, we are set for a full year at our current rates. After that, I plan on taking the six additional months of COBRA. That gets us to 18 months total and takes us almost to age 59. From there, I will jump on an ACA plan. I know I can't really game the system to get a lower premium because I want to prioritize Roth conversions. I can’t have my cake, eat it, and expect to lose weight too! Since Roth conversions trump ACA premium savings in the long run, we will just buy an ACA plan that covers nothing beyond catastrophic incidents. That means we might be on the hook for up to roughly $14,000 per year in max out-of-pocket expenses. That adds up to about $100,000 over six years, which I already have set aside in the cash bucket. My employer kicks in about $400 per month toward a health plan in retirement, so I figure I can get coverage for about $1,200 per month after that credit. My wife is an RN, and if we work part-time, we can easily earn enough to cover most of that. As for the annuity question, it is just not for me. When I compare the rates of return to the guaranteed income, the math never works in my favor. I am comfortable with market risk because of how we are set up. Having a zero mortgage and a decent cash bucket is my primary way of mitigating risk. When Social Security kicks in at age 65, that will be our "annuity." The biggest risk I see is health coverage. If things get really tight, one of us can always go back to work, though we hope it won't come to that. We have about eight years of expenses socked away entirely separate from retirement funds. It feels like I made my own annuity and kept my money too. I guess I can eat cake and not gain weight after all!
Post: The never ending payday
Link to comment from May 10, 2026