tag:blogger.com,1999:blog-5465015914589377788.post8038041431040098904..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Life Annuities and Longevity RiskMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-5465015914589377788.post-54477162523590757502011-12-26T18:58:30.685-05:002011-12-26T18:58:30.685-05:00Michael James,
The question is in retirement, can...Michael James,<br /><br />The question is in retirement, can one get 6% or 8% and still pay little taxes vs. stocks or ETF's and is guaranteed?<br /><br />Markets go up up and down and you don't want to put all your money in annuities. But if you want to enjoy life rather than follow the markets ups and downs and pay less taxes then annuities is something to consider. The problem is this is the end game without life insurance (which is risk management) most people will not pick up on as a back-up plan.Brian Poncelet, CFPhttp://www.rightinsurance.canoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-69409545978339158182008-10-06T17:30:00.000-04:002008-10-06T17:30:00.000-04:00A longevity annuity can be used to augment retirem...A longevity annuity can be used to augment retirement income. You can invest a small portion of your savings and the annuity payments begins at a future date during your retirement. The income can help to make up for inflation or investment loses. <BR/>There is a website that explains <A HREF="http://www.longevityannuities.com" REL="nofollow"> how longevity annuities work </A> What do you think?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-62088719016678095682008-09-19T21:06:00.000-04:002008-09-19T21:06:00.000-04:00MichaelI agree life annuities should be considered...Michael<BR/>I agree life annuities should be considered by many do-it-yourself investors. <BR/>I have recently published the first in a series of commentaries on longevity risk. You can find it at www.independentinvestor.info<BR/>Regards<BR/>Marc RyanIndependentInvestor.infohttps://www.blogger.com/profile/05694821758632351787noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-30701326165983347072008-09-16T22:08:00.000-04:002008-09-16T22:08:00.000-04:00Preet: Some sort of glitch caused your comment to...Preet: Some sort of glitch caused your comment to be lost for a while. Your middle ground idea seems good to me -- use a small annuity with COLA as protection from cat food and go for the good life by investing the rest on your own.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-67631258077242689262008-09-15T08:00:00.000-04:002008-09-15T08:00:00.000-04:00Gene: Maybe a theme for some blog posts could be ...Gene: Maybe a theme for some blog posts could be "investing ideas from the Simpsons." The difference between my proposal and a tontine of the Simpsons' type is that the survivors are draining the pot of money constantly so that the last survivor should end up with just a small slice of the original.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-90848084318796923952008-09-15T01:53:00.000-04:002008-09-15T01:53:00.000-04:00Very clever. Actually, there was a variant of thi...Very clever. Actually, there was a variant of this in the Simpsons episode: "Raging Abe Simpson and His Grumbling Grandson in 'The Curse of the Flying Hellfish'".<BR/><BR/>Grandpa Simpson and his army unit made a pact, such that the last living member got the paintings they pilfered from Germany. Such an agreement is called a "tontine", apparently:<BR/>http://www.answers.com/tontine&r=67genehttps://www.blogger.com/profile/05608927986297939720noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-19191759035104986412008-09-15T00:53:00.000-04:002008-09-15T00:53:00.000-04:00Your idea of the pooled investment was actually no...Your idea of the pooled investment was actually not unusual many (many) years ago - called a tontine structure. It was indeed the fodder for many murder mystery stories since it does create an incentive to do away with the other investors. I think a Hitchcock movie or some other famous movie is based on this.<BR/><BR/>Most countries have deemed them to be illegal now. <BR/><BR/>The annuities do have options to allow for inheritances, or continued benefits to a spouse/partner - but every bell and whistle added to a plain straight life annuity decreases the monthly payment amount.<BR/><BR/>Many people will get an annuity with a COLA rider (cost of living adjustment to increase the payout by inflation or a set percentage each year) to cover the bare necessity living expenses and then invest the rest themselves. Practically, I've found this to be a good middle ground.WhereDoesAllMyMoneyGo.comhttps://www.blogger.com/profile/09185007666460707356noreply@blogger.com