Comments on: Annuities That Work http://www.moneysmartsblog.com/wacky-business-idea-6-annuities-that-work/ Investing and Personal Finance Sat, 11 Feb 2012 17:11:02 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Louis http://www.moneysmartsblog.com/wacky-business-idea-6-annuities-that-work/comment-page-1/#comment-7423 Louis Fri, 15 Aug 2008 12:30:46 +0000 http://www.moneysmartsblog.com/?p=570#comment-7423 Solution: Self-Directed Annuity Why not a self-directed annuity, like a self directed RRSP? Why should I be deemed stupid in my retirement? For conservative money management, one should never withdraw more than 3% of equity annually. However, an increase in capital would allow the investor to obtain a raise to offset inflation. Such management could be assigned to an insurer, a mutual fund company or trust company for sytematic withdrawl of (3/12)% payable monthly. Solution: Self-Directed Annuity

Why not a self-directed annuity, like a self directed RRSP? Why should I be deemed stupid in my retirement?

For conservative money management, one should never withdraw more than 3% of equity annually. However, an increase in capital would allow the investor to obtain a raise to offset inflation.
Such management could be assigned to an insurer, a mutual fund company or trust company for sytematic withdrawl of (3/12)% payable monthly.

]]> By: Four Pillars http://www.moneysmartsblog.com/wacky-business-idea-6-annuities-that-work/comment-page-1/#comment-7185 Four Pillars Mon, 28 Jul 2008 23:14:32 +0000 http://www.moneysmartsblog.com/?p=570#comment-7185 This is a good idea for someone who is selling annuities. On a different topic - I don't think it's necessarily a good idea for individuals to emulate endowment funds since they are two separate animals. An endowment fund has a forever timeline and always has money coming in and out. An individual has money coming into their portfolio for a long time and then only money leaving the portfolio for a long time. Mike This is a good idea for someone who is selling annuities.

On a different topic – I don’t think it’s necessarily a good idea for individuals to emulate endowment funds since they are two separate animals. An endowment fund has a forever timeline and always has money coming in and out. An individual has money coming into their portfolio for a long time and then only money leaving the portfolio for a long time.

Mike

]]> By: Kyle http://www.moneysmartsblog.com/wacky-business-idea-6-annuities-that-work/comment-page-1/#comment-7181 Kyle Mon, 28 Jul 2008 14:46:13 +0000 http://www.moneysmartsblog.com/?p=570#comment-7181 I would actually love to be able to invest in a university-endowment-type fund, but I have no need for the income guarantee. I just want to be able to diversify my portfolio the way the big boys can. I would actually love to be able to invest in a university-endowment-type fund, but I have no need for the income guarantee. I just want to be able to diversify my portfolio the way the big boys can.

]]> By: Dividend Growth Investor http://www.moneysmartsblog.com/wacky-business-idea-6-annuities-that-work/comment-page-1/#comment-7179 Dividend Growth Investor Mon, 28 Jul 2008 14:22:24 +0000 http://www.moneysmartsblog.com/?p=570#comment-7179 To me annuities always looked like a bond payment. My question is why can't a person simply buy a bond yielding 5%-6% annually and withdraw the funds? Another fixed income idea that is better than an annuity is invesitng in inflation protected securities.. Spend the coupon and let the principal grow with inflation.. That way you have some money left over when you pass your assets to your kids.. An even better idea is to invest in dividend growth stocks that will increase their dividend payments to you.. That way you will have an income stream that provides a nice inflation adjusted cash flow for you.. In addition you are much more likely to earn capital gains if you decide to sell sometime down the road.. To me annuities always looked like a bond payment. My question is why can’t a person simply buy a bond yielding 5%-6% annually and withdraw the funds?
Another fixed income idea that is better than an annuity is invesitng in inflation protected securities.. Spend the coupon and let the principal grow with inflation.. That way you have some money left over when you pass your assets to your kids..

An even better idea is to invest in dividend growth stocks that will increase their dividend payments to you.. That way you will have an income stream that provides a nice inflation adjusted cash flow for you.. In addition you are much more likely to earn capital gains if you decide to sell sometime down the road..

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