I would not consider a Term/Period certain annuity. Last time I checked the return was less than 1%. Here's the definition of these.yeah, he also talked about "think about what problem the annuity will solve for you." If the annuity isn't solving a particular problem it's probably not worth it to you. I also found it helpful how he talked about the purpose of a term certain annuity like a 10 year annuity filling a gap between retirement at 60 and delayed SS to 70. Hadn't thought about it and often wondered what the point of a period certain annuity was. There were also other helpful tidbits there too but I don't want to spoil it for anyone.Thanks for posting the podcast reference.just posting again. missed the presentation, but just heard this in podcast format and thought Stan was really good at presenting the info on annuities (with Paul interviewing. good job Paul!). If interested you can listen to the podcast here:
https://www.paulmerriman.com/understand ... #gsc.tab=0
Stan could be a closet Boglehead. He talks about annuities the same way that many of us do. A example quote from Stan - “Buy an annuity for what it WILL do, not what it MIGHT do”.
I’ll definitely listen to the podcast.
Thanks again for the heads up.
Explanation: A 10 Year Period Certain annuity pays income for 10 years. It does not pay for your lifetime. If you die during the 10 year period, your beneficiaries receive this income for the remainder of the term. At the end of the 10 years, your original premium is not returned since it was paid out during the term. (10PC)
The Cashflow or Payout Rate is 12.38%. It is the percentage of premium paid out each year and includes interest plus return of principal.
Statistics: Posted by retireIn2020 — Sun Jun 02, 2024 2:36 am — Replies 7 — Views 1255