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Of course she has enough money to invest in equities. The issue is not money (after setting some aside for emergency funds), but time. Does she have enough time in her investment horizon at 66 years old to ride the ups and downs of the market. I think she does, if she can work for another 7 years or so.
Agree,
At this time, just put this extra $$$ in a short term account getting ~5% (fidelity has plenty of choices, or a local credit union)
Once you have clear view of total assets and cash flow needs.... Make a sustainable master investment plan (and probably not buy an annuity). They tie up your access to available funds, and can be costly (up front fees - sunk costs).
For self directing finances, boglehead wiki is very informative. If overwhelmed, their forum has seasoned, tho very conservative, and thoughtful replies. Any financial firm (including fidelity) will have similar recommendations, that generates adequate compensation for them (out of your pocket, into theirs). A cost of doing business.
, and providing services.
Thanks - I'm not sure if this is the particular annuity that you all are saying stay away from. Since I had stressed having additional income now until I retire "some day" or work part-time, the Fidelity advisor suggested this very protected annuity that is a lifetime income: Pension - Single Life Annuity.
I like it because I am protected; I would receive $600 a month for life; however, that is using $100,000 of what I have. If I had $200,000, I'd probably do it so I would have a larger emergency fund AND have enough to invest in the S&P500. Having lost so many jobs over the years, I'm just not willing to pull the trigger and have that money locked in place I can never get back.
We didn't talk short-term options at 5% although I mentioned some of the advice I was given here.
Yeah, my mind is at 50% hamster running on the wheel trying to decide.
Investing in the S&P 500 fund (FXAIX), along with a cash fund in your bank savings account, definitely sounds like a solid plan. That's pretty much what I've been doing too, and it's been working out great so far. But I would probably also ditch the idea of getting any annuities. I had considered annuities at one point, but the people on this board quickly steered me away from them.
Thanks - I'm not sure if this is the particular annuity that you all are saying stay away from. Since I had stressed having additional income now until I retire "some day" or work part-time, the Fidelity advisor suggested this very protected annuity that is a lifetime income: Pension - Single Life Annuity.
I like it because I am protected; I would receive $600 a month for life; however, that is using $100,000 of what I have. If I had $200,000, I'd probably do it so I would have a larger emergency fund AND have enough to invest in the S&P500. Having lost so many jobs over the years, I'm just not willing to pull the trigger and have that money locked in place I can never get back.
We didn't talk short-term options at 5% although I mentioned some of the advice I was given here.
Yeah, my mind is at 50% hamster running on the wheel trying to decide.
You don’t have enough total $ to be considering a SPIA.
I like it because I am protected; I would receive $600 a month for life; however, that is using $100,000 of what I have. If I had $200,000, I'd probably do it so I would have a larger emergency fund AND have enough to invest in the S&P500. Having lost so many jobs over the years, I'm just not willing to pull the trigger and have that money locked in place I can never get back.
And if you had to go into assisted Living for a year that costs $6k a month, that money is gone.
Thanks - I'm not sure if this is the particular annuity that you all are saying stay away from. Since I had stressed having additional income now until I retire "some day" or work part-time, the Fidelity advisor suggested this very protected annuity that is a lifetime income: Pension - Single Life Annuity.
I like it because I am protected; I would receive $600 a month for life; however, that is using $100,000 of what I have. If I had $200,000, I'd probably do it so I would have a larger emergency fund AND have enough to invest in the S&P500. Having lost so many jobs over the years, I'm just not willing to pull the trigger and have that money locked in place I can never get back.
We didn't talk short-term options at 5% although I mentioned some of the advice I was given here.
Yeah, my mind is at 50% hamster running on the wheel trying to decide.
I was told by a very successful investor when I asked whether to buy an immediate annuity and was told not to buy it until age 70, do it in stages, not all at once and never have more than 30% of my entire retirement funds in annuities.
Still haven't bought one and spouse is 76 now.
Important to understand that the first 17 years of annuity payments to you is the company giving you back your own money. Really hard for me to get over that fact.
I have $137,000+ now ($58,000+ was the first part of the inheritance) as I still work full time plus have social security so that's about $4,455 a month, net. Another bit of inheritance is coming but the whole process has been very slow.
Yes, it is looking like the mix of bonds/equities/international stocks may be the way, plus laddered CDs perhaps for a year at a time.
$600 a month is pretty good on a 100k investment isn't it ?
This is the payout rate on a non-inflation adjusted annuity. You need enough equity investments to offset inflation. Additionally, you shouldn’t put a sizeable portion of your assets in a SPIA.
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