I am a Fidelity customer and would be interested in any details on the Fidelity Annuity you mentioned?

Thanks...

Learning experience on annuities
 

When we moved to the Villages 2 years ago, we owned one variable annuity that was managed by our financial planner. It wasn't until we went to one of the financial programs in TV that we realized the fees associated with this annuity; i.e., 4-5% per year. This was a variable annuity and required the financial planner to "move" funds within the annuity to maintain value. With fees of 4-5%, even if the fund made 8%, it really was only growing at 3%. We transferred the funds to a fixed annuity for a nominal one time fee with no annual fees, received a one-time bonus of 8%, and feel much more comfortable in our choice.

They may feel a moral obligation to pay for my last rites (which shouldn't be too bad considering all they need to do is fire up the furnace) but I doubt they would have any legal obligation to do so. :(

Hi DaleMN The issue of the estate tax has been kicked around and I am aware that politicians believe they have more of a right to your money than you do. So no one knows how what limits the fed will settle on in the future. Ohio just removed their estate tax in hopes of stopping businesses from leaving the state.

I do have a revocable living trust.

Mark Dayton is upsetting the apple cart. Hit them well.

Well I am not in the top 2% that Dayton rightfully feels should pay a fairer share nor will I have to worry much about estate tax so I hope he tips that apple cart right over. :D

No knowledge of Ohio, but I think the Fed Estate tax is reasonable. At the estate tax level, I'd submit most is untaxed gains from stocks, real estate, and other long-held assets. Frankly, it's unfair to be able to pass it on tax-free.

Unfortunately, as you pointed out, trust and other legal tricks are always there to avoid paying fair share.

:BigApplause:

With a Roth Account, any money can be passed on, tax-free.

KISS (Keep it simple stupid)
 

I find it difficult to get involved with these plans that are not easily understood.

The only annuity that I might consider would be a Single Premium Immediate Annuity (SPIA). I would attempt to hold off as long as possible before purchasing, to allow interest rates to rise.

I see roomates and senior communes in our future!
 

A number of those (communal livng) have already begun in the West and in the New England area. People of like interests sharing a home and
responsibilities and pooling dollars to live together into their twilight years.
I suspect that wouldn't be such a bad idea either. Beats being all alone and
worrying/wondering if the $ will last.

If you liked the dorms in college, you'll love old age, right?

Hummmmmmmmmmmm, maybe some college kids and some old folks, kind of a combination. I kind of enjoyed some of those college dorm days. :2excited:

I believe most of you already know this but I would not take advice on buying annuties from anyone who sells any investment products. Do your own reasearch and ensure you understand all the fees you are paying.

I couldn't agree more. I've always picked my own stocks (no mutual funds) and have been quite active in the market since the late 70s. I'm doing very well inspite of going through 3 market crashes! I took the biggest risk early on by only investing in 2 stocks. That worked out well and I went to 6. Presently, I own stock in nine companies.

It's been great but I never take the market for granted. The secret, at least for me, is to live way below my means. I don't spend a lot of money just because I have it to spend. For all I know, I might live to be 100 or 115 and I don't want to run out of money. Who knows what inflation will do to the value of our retirement savings down the road. So it's better to play it safe and end up with too much, rather than too little.

Many advisors talk about saving up a retirement nest egg and then slowly spending it down. That sounds like a sad state of affairs to me. Although, I suppose most people don't have any choice. But if people would learn how to invest wisely, they might be able to live below their investment income and therefore continue to increase their net worth during their retirement years. But, as you have said, it's not for everyone.

:wave:

I2RH and VPL are fellow travelers to my way of thinking. The idea of drawing down your principle seems self defeating and assures, at some point, you will run out of money. To me, the challenge is to invest well enough to live off the income from your money, not the money itself. How that is done is fodder for a different discussion. I set my goals very high for return. I reach high because when I was looking for 15%, I got 11%. If I aim higher, do my homework, I get higher. The main falacy is that retirement finances are a "fire & forget" proposition. ((Make your choice then live with the results)) Finances are like a garden, they both need a lot of tending to produce the best results.