The financial product for a better retirement!

Today we discuss the suitability of annuities in pre-retirement and post-retirement portfolios. Specifically, we will talk about the Single Premium Immediate Annuity or, "SPIA."

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[texasjody]

I wanna say tim watches your videos then blocks anyone that comments on yours.
I’m sure I’ll be blocked now.
I think he has me in time out or something. I’ve noticed he likes everyone’s comments but I never get a like.
I told him his relationship with Tammy is just like mine with my “boyfriend “/“husband “.
You can tell when they are fighting, he deletes the videos with her in them. Very high school ish .
He now has subscribers sending him gifts. Man he has some kool aid drinking followers.
I watch him for entertainment. Any one that listens to him for financial advice is setting themselves up for failure.

[vincentdsnt]

Annuities have always been a negative in my memories to me.

[TimeOrDistance]

QUESTION Howard just watched Tim from Sarasotta and his social security analysis, dying at 73 or 78.But if someone is ALREADY 60 should they not live to 82 male or 85 if a female? That seems important doesn't it? Thanks

[oldbloke]

I have to say I have a serious mistrust of most things being provided by insurance companies tbh.
Over the years I've seen way to many examples of where the customer is the last thing on the list of their considerations.
Here in Australia we had a major crackdown on financial planners and products a few years back due to the amount of rorting and overcharging that was going on.
The industry is now much better for it but the costs of financial advice have gone through the roof due to all the compliance issues involved for providers of these products.
They're actually talking about simplifying parts of it all so that basic financial advice can be provided without costing thousands of dollars in fees, perhaps over many years.
Isn't it curious that it seems that the more you have in life that the more stress and cost that are involved in trying to maximize the benefits it can provide.

[myvenusheeler]

Just turned 71 and am looking at buying my second SPIA in the coming weeks. Payouts with A+ rated insurers are as high as I have seen rates in several years. To each their own but I see these products in a very positive light for a percentage of your portfolio to basically buy yourself a contractual pension in conjunction with your SS income that is NEVER affected by the vagaries of the stock and bond market, which to me at least, relying on the market solely for your retirement income is not a good idea at all and last year's beat down on relatively safe bonds are a very good example. I personally would rather have 35%-50% of my portfolio in a SPIA and the rest in a more aggressive equity tilted IRA . Best of both worlds.

[ShyPineapple-zvlz]

I enjoy ur broadcasts- you showed up on my feed with your Sarasota Tim video-
One small suggestion - use a deeper color ( dark blue / black/ red/ on that white board

[DwayneMcNally]

Just purchased a deferred annuity that was recommended by my financial advisor. The wife and I are both 58, we put in 237k now and will defer until 65. At 65 we will receive 25k a year for the rest of our lives. Depending on when we die there may be a cash value for our kids but we didn’t do it for that. We just wanted another revenue stream during retirement

[headinghome]

I've never had an annuity. Never will. Good video.

[vincentdsnt]

Thanks for your time H. DO you think if a man has enough for retirement and processes to his aires would these annuities be a non-issue?

[banditofx]

I’m 65, looking at a MYGA. Stan the annuity man. 6% to 5.5% and protection of principal with death or end of term. I may consider a SPIA after the term✌️.

[headinghome]

Just saw this. Forget my earlier suggestion about a discussion on Passive Income.

[CollinsRealty]

I just got a quote online and pretty impressive, If I’m doing this right it’s a 55% return if I live to 83 . Definitely worth considering, thank you!

[vincentdsnt]

Tim just turned 65 this full retirement is about 66 and 4 months so..O K Howard check my math...Tim as he says makes $1700 a month $20, 400.00 a year from SS, He is not at full retirement age till 66 and change so if he earns lets say $50.000 this year and you're under the full retirement age, the annual earnings limit is $21, 240 for 2023. Would that mean that for every two dollars over 41.640.00 this year one of them goes to the Gov in a tax?

[RandomizedLife]

Thanks for a great video, Howard. My oldest brother is a CPA and financial planner and he has given me similar advice. My sons (31 and 36) appear to be on track to have enough in pensions and retirement to see them through from the day they retire to EOL. I’m guessing annuities wouldn’t be the best vehicle for them.

[randolphh]

Hi Howard, another good video. I’m not anti-annuity, in fact we bought a small amount of QLAC deferred annuities to protect the widowed spouse when one SS check goats away.
From a conceptual point SPIA’s seem to make sense, but the math on them is poor unless you know you will live very long and even then it worse than a portfolio assuming average returns.The 7% return sounds good, but as stated is not inflation adjusted, and that is a big problem, whereas the so called 4% rule is. So for most people after 10 years you would be better off going the portfolio route. The only other advantage is the guarantee, which can be a big benefit for some, and since spending tends to decline with age, the inflation loses won’t be as painful.
Glad to see you have read Wade Pfau’s books. I like him writings a lot along with Michael Kitces.

[LisaNewman-qeie]

Chose annuities to - as you said “Protect the nest egg “- hopefu purchasing an annuity was a good choice at 65 with likely future need for some monthly income to supplement ss. with the single deferred plans - my understanding is it does pay out to beneficiary/ spouse upon death. Your info was very good - learned lots. Thank you!

[RDQA]

I’ve never been a fan of giving an insurance company my hard earned life savings for a monthly check…….

[paulscott]

What do Sarasota Tim and Dennis the Menace have in common? Both live in Florida. Both about the same age. One liked his prison job, while the other thinks all jobs are prison jobs. True enough. Check on Jay North.

[casmithc]

HOWARD!! Did you see SARASOTA TIM'S video today on how you can make $50, 000 at 62 on SOCIAL SECURITY? Why would anyone need an ANNUITY? Did you waste our time with THIS VIDEO??