Comments on: Delayed Retirement and Money Problems http://gotoretirement.com/2010/03/delayed-retirement-money-problems/?utm_source=rss&utm_medium=rss&utm_campaign=delayed-retirement-money-problems A Baby Boomer's Journey from Retirement Planning to Retirement Living Mon, 06 Sep 2010 13:26:35 +0000 http://wordpress.org/?v=2.9 hourly 1 By: Peter Bateman http://gotoretirement.com/2010/03/delayed-retirement-money-problems/comment-page-1/#comment-2339 Peter Bateman Thu, 18 Mar 2010 17:39:32 +0000 http://gotoretirement.com/?p=4733#comment-2339 I was surprised to see the annuity information indicating $300/month--or $3600 annually--on an annuity purchase of $45,000 for a 66 year old. That is a guaranteed yield of 8%--very tough to achieve these days(as other calculations in Go to Retirement post dated March 18 using a 4% return assumption would confirm) Granted, the $45,000 is gone forever if you die, and not there for your heirs, and there is certainly no compounding of the return on investment. I have not yet requested personal quotes for annuities because I assumed rates of return would be quite a bit lower than 8% at this time in our economy. However, for the situation my wife and I are in, not needing or able to worry about kids or grandkids and simply wanting to make retirement investing easy and less time consuming than it is now as we actively manage our investments, annuities sound very appealing. I was surprised to see the annuity information indicating $300/month–or $3600 annually–on an annuity purchase of $45,000 for a 66 year old. That is a guaranteed yield of 8%–very tough to achieve these days(as other calculations in Go to Retirement post dated March 18 using a 4% return assumption would confirm) Granted, the $45,000 is gone forever if you die, and not there for your heirs, and there is certainly no compounding of the return on investment.

I have not yet requested personal quotes for annuities because I assumed rates of return would be quite a bit lower than 8% at this time in our economy. However, for the situation my wife and I are in, not needing or able to worry about kids or grandkids and simply wanting to make retirement investing easy and less time consuming than it is now as we actively manage our investments, annuities sound very appealing.

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