Some annuity interest rates are considerably higher right now and are listed from A and A+ companies. As of yesterday, rates I saw were up to 6% for five and seven year Multi-Year Guaranteed Annuity contracts and that’s compounded. Here’s the website I’ve been reviewing, https://www.stantheannuityman.com/annuity-calculators/myga
From the drop down menu, select calculators and you can run free up to the minute quotes for various types of annuities.
I’m seriously considering rolling my traditional IRA into a Deferred Income Annuity (DIA) or setting up a QLAC for the next nine years and take withdrawals at 73 or up to 85 with the QLAC. Both are contractual guarantees and pay a fixed compounded interest rate over a fixed term. As required by Federal law, every state must set up a guaranty association to take over the contract if something were to happen to the insurance company. My state has a very good guaranty association and covers more than most other states. Either annuity will function like a third pension alongside SS at 65 with Traditional Medicare and a pension from my former employer. The older I get, I understand the prevailing concern of running out of money in the later years of retirement. I think either of the annuities mentioned are worth investigating.
I like preferred stocks as they are the first to be paid by a company and they can have higher yields. My favorites are offered as perpetual by the Federal Agricultural Mortgage Corporation a.k.a. “Farmer Mac.” Series C is paying 6% and series E pays 5.75% based on its $25 book value. The quarterly payment is the same whether the share price goes up or down. As an income investor, I don’t stress about the price of the shares. Most preferred stocks have call dates where the issuer can choose to redeem them at their $25 book value but these two mentioned continue to renew. Because these are Class A shares, they are the first paid by the issuer in good times or financial hardship.
Comments
Some annuity interest rates are considerably higher right now and are listed from A and A+ companies. As of yesterday, rates I saw were up to 6% for five and seven year Multi-Year Guaranteed Annuity contracts and that’s compounded. Here’s the website I’ve been reviewing, https://www.stantheannuityman.com/annuity-calculators/myga From the drop down menu, select calculators and you can run free up to the minute quotes for various types of annuities.
Post: Retirement Roulette
Link to comment from November 25, 2023
I’m seriously considering rolling my traditional IRA into a Deferred Income Annuity (DIA) or setting up a QLAC for the next nine years and take withdrawals at 73 or up to 85 with the QLAC. Both are contractual guarantees and pay a fixed compounded interest rate over a fixed term. As required by Federal law, every state must set up a guaranty association to take over the contract if something were to happen to the insurance company. My state has a very good guaranty association and covers more than most other states. Either annuity will function like a third pension alongside SS at 65 with Traditional Medicare and a pension from my former employer. The older I get, I understand the prevailing concern of running out of money in the later years of retirement. I think either of the annuities mentioned are worth investigating.
Post: Retirement Roulette
Link to comment from November 25, 2023
I like preferred stocks as they are the first to be paid by a company and they can have higher yields. My favorites are offered as perpetual by the Federal Agricultural Mortgage Corporation a.k.a. “Farmer Mac.” Series C is paying 6% and series E pays 5.75% based on its $25 book value. The quarterly payment is the same whether the share price goes up or down. As an income investor, I don’t stress about the price of the shares. Most preferred stocks have call dates where the issuer can choose to redeem them at their $25 book value but these two mentioned continue to renew. Because these are Class A shares, they are the first paid by the issuer in good times or financial hardship.
Post: What’s the best place to earn a safe yield?
Link to comment from August 12, 2023