Personally, I always started this sort of mental exercise by looking at both current expenses and projected retirement income and creating this SWAG: Income-expenses=gap x 30. Not meant to be precise just a SWAG.
I like guaranteed income. I really like guaranteed income with a true COLA (not a fixed increase with a lower starting payment if you get one with an annuity). To my knowledge it is kind of unique and an opportunity not to missed. I like taking advantage of opportunities. I like the idea of maximizing that guaranteed income with true COLA. I like the idea of getting more of income from guaranteed income of which not all of it (in our case 85%) is taxable. These are some of our reasons. Others include it is part of a coordinated financial plan in which we convert tax deferred retirement accounts to tax free funds while delaying SS in lower income years. Those are some of my reasons. Everyone is different and YMMV.
Wade Pfau discusses this point in the Retirement Planning Guidebook (referenced in another comment). Essentially it is not either/or, it is both from his perspective. He acknowledges the loss of purchasing power of a SPIA and discusses a few points of how an annuity could fit into an overall financial plan. Those points include matching the annuity to basic expenses/needs (minimum dignity floor); it provides the real and psychological benefit of stable, guaranteed income; only using the annuity for a portion of the asset; and combining it with stocks for inflation protection if held long-term; and also combining the annuity with delayed SS. I've also seen him argue that one would need a smaller amount for the annuity purchase than allocated to bonds for the same return. I'll have to admit when we built our TIPs ladder, which is essentially designed as personalized annuity with COLA and maintenance of liquidity, with the same purpose Pfau describes of liability-matching and building a floor, it took a chunk of change.
Many of money memories are painful-my parents arguing and my poor decisions. Thankfully I found information in periodicals and newspapers-including Jonathan's column-somewhere along the way-90s?; my career progressed, I finally made a smart decision and married a great woman and the last 20 years have been great.
My wife and I visited all those you mention except Springmoor plus several others. Id recommend adding Carolina Meadows and Carol Woods to your review list. If you are not tied explicitly to the Triangle, Twin Lakes near Burlington is worth a visit-like Croasdaile very good and affordable. Searstone is an interesting one also as the financial model is a bit different. Another different financial option-mostly rental-and more high end is The Cardinal at North Hills. I also recommend the Olli Class at Duke which is excellent and different than the one at NC State.
Good one. As I've commented before my wife and I got on 4 non profit CCRC wait lists almost 2 years ago when we were 67/64. We expect it to be at least 10 years before we get notified and then we begin the process of deciding. We wanted to get on multiple lists to keep our options open and fortunately there are some good choices in our area. Both of us have family history reasons for doing this and we think it fits our situation. It's clearly not for everyone. For a nominal fee, NaCCRa has some credit resources including screening info. It's important remember that when you buy in to a CCRC you are buying insurance with a place to live.
I have not tried any, having relied on our FA but I do participate regularly in retirement planning forums. A couple others frequently mentioned are Projection Lab (Rob Berger talks it about it and Boldin on his YouTube Channel) and Pralana. Good luck.
Excellent analysis. Agree with almost all of it. (I understand you are looking at MA mainly from a financial standpoint, but it's a suboptimal choice for many people, including healthy people so I would have left that out.)
Comments
Personally, I always started this sort of mental exercise by looking at both current expenses and projected retirement income and creating this SWAG: Income-expenses=gap x 30. Not meant to be precise just a SWAG.
Post: There is no magic number – and it sure isn’t $1 million
Link to comment from September 13, 2025
I like guaranteed income. I really like guaranteed income with a true COLA (not a fixed increase with a lower starting payment if you get one with an annuity). To my knowledge it is kind of unique and an opportunity not to missed. I like taking advantage of opportunities. I like the idea of maximizing that guaranteed income with true COLA. I like the idea of getting more of income from guaranteed income of which not all of it (in our case 85%) is taxable. These are some of our reasons. Others include it is part of a coordinated financial plan in which we convert tax deferred retirement accounts to tax free funds while delaying SS in lower income years. Those are some of my reasons. Everyone is different and YMMV.
Post: Rehashing the age 70 thing. Tell Dear Dickie what is it that he doesn’t get about SS at age 70?
Link to comment from August 22, 2025
Wade Pfau discusses this point in the Retirement Planning Guidebook (referenced in another comment). Essentially it is not either/or, it is both from his perspective. He acknowledges the loss of purchasing power of a SPIA and discusses a few points of how an annuity could fit into an overall financial plan. Those points include matching the annuity to basic expenses/needs (minimum dignity floor); it provides the real and psychological benefit of stable, guaranteed income; only using the annuity for a portion of the asset; and combining it with stocks for inflation protection if held long-term; and also combining the annuity with delayed SS. I've also seen him argue that one would need a smaller amount for the annuity purchase than allocated to bonds for the same return. I'll have to admit when we built our TIPs ladder, which is essentially designed as personalized annuity with COLA and maintenance of liquidity, with the same purpose Pfau describes of liability-matching and building a floor, it took a chunk of change.
Post: Outliving Your Money? Let’s Do the Math on Annuities
Link to comment from August 15, 2025
Many of money memories are painful-my parents arguing and my poor decisions. Thankfully I found information in periodicals and newspapers-including Jonathan's column-somewhere along the way-90s?; my career progressed, I finally made a smart decision and married a great woman and the last 20 years have been great.
Post: My Money Memories
Link to comment from August 8, 2025
My wife and I visited all those you mention except Springmoor plus several others. Id recommend adding Carolina Meadows and Carol Woods to your review list. If you are not tied explicitly to the Triangle, Twin Lakes near Burlington is worth a visit-like Croasdaile very good and affordable. Searstone is an interesting one also as the financial model is a bit different. Another different financial option-mostly rental-and more high end is The Cardinal at North Hills. I also recommend the Olli Class at Duke which is excellent and different than the one at NC State.
Post: CCRC – continuing care retirement community
Link to comment from August 7, 2025
Good one. As I've commented before my wife and I got on 4 non profit CCRC wait lists almost 2 years ago when we were 67/64. We expect it to be at least 10 years before we get notified and then we begin the process of deciding. We wanted to get on multiple lists to keep our options open and fortunately there are some good choices in our area. Both of us have family history reasons for doing this and we think it fits our situation. It's clearly not for everyone. For a nominal fee, NaCCRa has some credit resources including screening info. It's important remember that when you buy in to a CCRC you are buying insurance with a place to live.
Post: Starting Over, if you can. Some decisions are subject to change (I apologize for its length)
Link to comment from August 3, 2025
Falls are a significant risk factor when aging. Peter Atttia, the longevity doc, has some good stuff on it. Here's one: How People Over 65 Can Reduce Their Fall Risk | Peter Attia
Post: Bad Trip
Link to comment from July 31, 2025
I have not tried any, having relied on our FA but I do participate regularly in retirement planning forums. A couple others frequently mentioned are Projection Lab (Rob Berger talks it about it and Boldin on his YouTube Channel) and Pralana. Good luck.
Post: Recommendations for Retirement Planning Tools
Link to comment from July 28, 2025
This piece might be useful: Let’s look at the new iShares Defined-Maturity TIPS ETFs | Treasury Inflation-Protected Securities
Post: Has anyone used iBonds to build a bond ladder?
Link to comment from July 27, 2025
Excellent analysis. Agree with almost all of it. (I understand you are looking at MA mainly from a financial standpoint, but it's a suboptimal choice for many people, including healthy people so I would have left that out.)
Post: 100% Base Pay Replacement: What Does It Mean?
Link to comment from July 27, 2025