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capjak

If by safety first you mean guaranteed income (not probability portfolio based) for 25 years, than I guess 25 year TIPS Bond Ladder. Most insurance companies will allow up to 50% of liquid asset in SPIA so you could purchase a portion of the 50K annual spend with a SPIA which would provide a guarant...

capjak

Fixed Index Annuity is a complex product designed to compete with CDs nothing else, (unless an income rider is added/included to provide future income than they are competing with deferred SPIAs). Expectation is that they will perform similar maybe better/maybe worse than CDs or MYGAs. North America...

capjak

Based on the years that I researched MYGAs before purchasing all the sites Blueprint/Stan the Annuity Man/Immediate Annuities, Annuity Advantage etc.... have access to the same carriers and the interest rates are the same. While some internet sites are easier and more detailed than others, when purc...

capjak

Lifestrategy Fund across all accounts is good:

1. Future tax laws change, difficult to predict the future so having same asset allocation is basically hedging against changes. Maybe not the best one year but not the worst either and perhaps better the next et....

Certainly is easy to manage.....

capjak

I purchased 3 MYGAs this year starting in May 2019 all from Stan the Annuity Man. Process start to finish was about 7 days for first 2. Some of it depends on the Insurance company as the third is going to be 3 weeks.

capjak

I would look at rates for the different years (3,4,5), It seems 3 and 5 have better rates than 4 when I check. I think less than 3 and maybe CDs and MM are better. I try to have AM Best rated A- or better. I don't think it matters which major site you use they all seem to have the same products and ...

capjak

I have a revocable trust and it is easy to put investment/brokerage accounts into them. I have them set up at Fidelity/Merrill/Schwab and banking. Call someone at the place to do investing and tell them you want your accounts switched to a trust, some paperwork and uploading copies of the trust (si...

capjak

I would look into a SPIA (no inflation adjustment, but likely not needed), based on her age (IDK her location) but used mine, it would cost $224,000 to obtain $36,000 per year for her life, 246,000 for life with guaranteed 5 year payout or 346,000 for life and 10 year payout. See stan the annuity ma...

capjak

I have a revocable trust and it is easy to put investment/brokerage accounts into them. I have them set up at Fidelity/Merrill/Schwab and banking. Call someone at the place to do investing and tell them you want your accounts switched to a trust, some paperwork and uploading copies of the trust (sig...

capjak

Oh, and no 59.5 limitation if purchased with unqualified funds... There is a 10% penalty on the gains (i.e. if you take the interest credited) and are under 59.5. I own 2 MYGAs that allow interest withdrawal prior to the surrender date that has 0 fees on taking the interest out (other allow 10% wit...

capjak

I own MYGAs, 5 year a MOH A+ rating 2.65% not available now and Midland 7 year at 3.5%.

I was not aware they still had 2.5% on 5 year for A+ rated, I will have to look into that. There is an A- with 2.8% Oxford than I am thinking about.

capjak

I would start the transfer process and call him since you have a 15 year relationship.

He will likely try to convince you to stay put by lowering his fee (of course if he is willing to lower his fee why didn't he do it 15 years ago)?

capjak

never mind

capjak

If she can get 30,000 per year with 10 year certain for a 400,000 premium that starts immediately, I would do it. That is a very good rate (13.3 years to break even). Is she in good health? I would check those numbers as that seems significantly better than current market rate. If you choose to wait...

capjak

I have some preferred stocks that pay 5-6% qualified dividend that intend to keep forever, some have been callable for 10+years. Always buy/sell with a limit order and can use GTC. Some are very liquid (high volume, bid/ask price is very close, look at daily volume), others are almost never traded (...

capjak

Index Annuity is an alternative to a CD or Bond. They are designed to compete with CD like returns, with the possibility of getting a higher return if things work out over the life of the annuity. Expect slightly better than CD returns no more no less.

capjak

tj: In my IRA: I own Fidelity Separate Managed Account (Core Bond). The minimum buy in is 350,000 and they manage individual bonds in your account. They charge .4% for this. You own the individual bonds and if you stop the service than it yours to deal with selling etc.. I also called the bond desk ...

capjak

I have MYGAs, principle guaranteed by claims paying ability of the insurance company which is AMBest A+ rated and pays 3.5% annual interest tax deferred 7 year term and a 5 year term at 2.65%. Access to interest on a monthly basis if I want.

capjak

Called FIDO today and of course the rate is down to 2% for Mass Mutual 3yr Jumbo. I asked the guy if he could order one up on the phone and lock in that rate before it goes any lower and he said I'd have to go through my local guy. Ugh. So, I set up an appointment phone call for Thursday. I guess t...

capjak

Great, I am doing the same thing but going to ladder AMBest A+ rated, 3 year (2.25%), 5 year (2.65%) and 7 year (3.5%) MYGAs not in fidelity however. Just for my edification - what is the surrender charge schedule on the 7 year MYGA? Hopefully it’s not a flat 7%. Probably something more like 7/6/5/...

capjak

Great, I am doing the same thing but going to ladder AMBest A+ rated, 3 year (2.25%), 5 year (2.65%) and 7 year (3.5%) MYGAs not in fidelity however.

capjak

I believe the OP is asking about Multi-Year Guaranteed Annuity (MYGA), which are also referred to as Deferred Fixed Annuities. Fidelity has a good discussion and links to MYGA rates below. https://www.fidelity.com/annuities/deferred-fixed-annuities/overview I am far from an expert on MYGAs but am (...

capjak

So 20 years expenses in Bonds (.8 x 25=20) and 5 Years in Stock, not counting SS and you have a pension. Not a lot of information but if you are sure about your expenses and/or you have flexibility than with the exception of run away inflation you seem to be good (maybe TIPS at some point in your ta...

capjak

BND is up 5% YTD and was up 8.8% in 2019. so yea

capjak

Did the salesman say what his commission is for stemming you and annuity?? Based on limited data you look great and doing well on your own. Suggest posting for a comprehensive portfolio review per forum guidelines and format. You don’t need an FA j🌺 Commissions on SPIA are around 2% of the premium ...

capjak

Unfortunately, I don't know a place where you can actually see availability or dollar figures without giving your personal information to an agent. you can get a quote based on age and gender at this web site https://www.immediateannuities.com If you want the companies you do have to put in your em...

capjak

the only thing in your post i'm not sure about is whether income annuities are "the cheapest way" right now. i would think ibonds would be cheaper as aj76er points out. As I know you know, funding a lifetime of income using bonds effectively over-funding your retirement (i.e. a single hou...

capjak

Stay put, turn off the news,

Most important:

Don't go to the stores (order groceries and disinfect), public places etc, social distance from everyone till we get through this.

Good Luck, sounds like you have a good enough AA.

capjak

confirm that if she cancels she loses the surrender fee as it has been only a few months since first payment. She may have a period where she can get most of her premium back or transfer it to some other option.

capjak

I don't see any way to download a copy of the contract, or any actual details. With treasuries yielding less than 1%, I think i'd skip their probably 100 page contract anyway. If any insurance peddler actually wants me to send in a megabuck or so with a 5 yr APY of 3%, they should pm me with a copy...

capjak

[quote=

I’ve bought spy every day this week. And every day it goes lower. Like clockwork.
[/quote]
Please stop buying.

capjak

I look multiple times a day (Personal Capital) to see what bills/transactions that are occurring. But not to buy/sell assets.

capjak

When I investigated a SPIA they would not allow greater than 50% purchase. You were to attest to having at least 50% liquid assets that were not be part of the purchase of a SPIA.

capjak

Back in 2009 was there this type of hysteria over swine flu that started in the US and infected 20+ million? I don't remember people running to stores to get water/masks etc... but maybe they did? I know we were unprepared but I do not remember the panic and my son was in College where they would se...

capjak

I would Goal Priority: 1. Contribute to Roth IRA-Really think this is something to take advantage of now while it is still an option. 2. Contribute to IRA-tax deferred is still a good option 3. Townhome: This is personal decision living in TH vs Rent so I would due the minimum downpayment as payment...

capjak

Do you really need life insurance? If in the unlikely event one of you should pass, would the other not be able to handle the debt? I would think life insurance would be needed if you had children or one of you depended on the other's salary to live in the case of an early passing. I have looked at ...

capjak

My mother had a stroke and was in assisted living for 5 years and a little less than 1 year in nursing care facility. It was less than more costly areas but still over $350,000 +. In addition, my father had his living expenses. I would say that you would need $500,000+ set aside for LTC in the event...

capjak

Cash will be more stable than a Bond Fund. However a total Bond Fund will usually out perform cash. Example for 2019 Vanguard Total Bond Market Fund-BND Average annual returns—updated monthly as of 12/31/2019 For 2019 return was 8.82%, 3 year average return was 4.03%, 5 year return was 3.01% and 10 ...

capjak

Houses are definitely not an investment. They are very illiquid, usually have costs to purchase and costs to sell. Once they are paid off you continue to pay "rent" in the form of real estate taxes. If you do not maintain them their value decreases. They are high cost to maintain. They hav...

capjak

I think SPIA can be a bond alternative, however, I am not a fan of deferred annuity. I would put the money in a bond/TIPS to mature when I was at a later age (60/70/80, you decide) and than use that money to purchase the annuity if I was still inclined to purchase one. I would use other assets to pr...

capjak

There are individual preferred stocks that have qualified dividends and pay around 5%. for example AILLL Ameren utility (illiquid so difficult to buy much) but Wells Fargo preferred L can be bought but it is expensive right now but if you do not intend to sell anytime soon than probably neither is g...

capjak

I would not go less than A rated on AM Best and perhaps a Comdex Ranking of 80 or greater.

capjak

My MoM spent 6 years in assisted living and 6 months in nursing home. I purchased (56/57 year old) One America (Asset Care) a Hybrid policy guaranteed no increase in LTC cost of rider, with an upfront premium plus 10 year pay (probably should have done 20 year pay) for the unlimited payout LTC rider...

capjak

Annuities are not "good" or "bad" they are just financial tools. Fixed Index Annuity are sold as an investment vs stock market but are really insurance products that are designed to compete with CD like returns not compete with stock market. Some people like the idea of having an...

capjak

Absolutely love my 5 timeshares (Disney, Westin,Sheraton,Marriott,Hilton). All bought resale of course for 50% or more off retail. Many many years of travel with family in 2 or 3 bedrooms and look forward to many more with grand kids. Absolutely forced to go places and take vacations. Don’t you hav...

capjak

Absolutely love my 5 timeshares (Disney, Westin,Sheraton,Marriott,Hilton). All bought resale of course for 50% or more off retail. Many many years of travel with family in 2 or 3 bedrooms and look forward to many more with grand kids. Absolutely forced to go places and take vacations.

capjak

I own individual preferred appx 6% of investable assets...some since August 2015 with qualified dividends average yield is 5-6% ($18,000 per year qual dividend) : FYI... These got killed during the financial crisis like other stocks .... but I intend to hold them for a long time or until they are ca...

capjak

We go to Maui for last 10 years in Feb. it’s whale season and awesome time to go.

capjak

If it is a FIA with an income rider, which I suspect that it is, one of the most sold FIA with income rider (10 year) is Allianz 222 FIA.

Here is some information on that one:

https://www.annuitygator.com/independen ... 2-annuity/

others like this are similar

capjak

Should investors choose to include junk bonds for their diversification and potential high returns? Rick Ferri's All About Asset Allocation suggests 20% of fixed income or 10% of the overall portfolio for early-accumulators, midlife-accumulators, and pre- and active retirees. John Bogle comments tha...

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