Ray Holland

Comments:

• Richard, I resisted purchasing a SPIA for 10 yrs and really didn't foresee myself allocating resources to annuities. However, at 70yo, I joined the "dark side" and recently purchased 2 annuities(kept under the State Guarantee levels) from Mass Mutual & NY Life for the following reasons:

  1. Simplicity - I don't have a pension but wanted enough guaranteed income to cover fixed expenses + some discretionary spending. It aligned with my Soc Sec claiming strategy to start drawing max monthly allowance @ 70yo plus SPIA income to cover shortfall that Soc Sec didn't cover.
  2. Psychological - since I have enough guaranteed income sources to cover our annual expenses, the wife feels better and I don't have to worry about stock mkt returns as much.
  3. Annuity payout and mortality credits were higher in 2023 than many years given the rise in interest rates plus our age. Our breakeven for return was about 13yrs so after that we're rewarded if longevity favors us which family history supports. If we die before the 13yrs, the kids get a payout of whatever principal remains.
  4. Asset allocation decisions - having enough guaranteed income allows me to be a little more aggressive with asset allocation for future possible returns and heir's inheritance. So, the the investment bucket is allocated to 5 index etfs and thus called it a day
  So, those were my reasons and I sleep well at night. I believe Jonathan had posted previously that he was considering a similar strategy. Anyway, your mileage may vary but those were my reasons.

  Post: An Annuity Instead?

  Link to comment from December 29, 2023

• Jonathan, I like this one as well: https://www.portfoliovisualizer.com/historical-asset-class-returns

  Post: Sites Worth Seeing

  Link to comment from March 30, 2022

• Mike, I'm retired and manage my investments. I use some of the sites that you mentioned, but my favorite website for portfolio mgt is Portfolio Visualizer. It's a data rich site that allows an individual to build and backtest portfolios with various asset allocation mixes, monte carlo sim and a rich collection of mutual funds, etfs and closed end funds. https://www.portfoliovisualizer.com/

  Post: Sites Worth Seeing

  Link to comment from March 30, 2022

• Kristine, I have a daughter who is paying PMI on a mortgage that she took out 2 yrs ago. Given the housing appreciation in our area her house has significantly increased, so this might be a possible avenue for her to eliminate the PMI she is paying. Thanks for the article and tip.

  Post: Up and Away

  Link to comment from January 29, 2022