Have any of your set up an annuity with TIAA?

[Anonymous]

I am referring to annuitizing some of your retirement savings, so you have a guaranteed income stream (analogous to a pension) for as long as you live.

The down side is once you die, they keep any leftovers (unless you have opted for a period of payout that is certain, which would go to your heirs if you die within say, the first 10 years).

If you have, are you glad? Have regrets?

I know I could post this on the Finance forum, but I wanted to hear from actual users, not young bucks spouting advice.

Thanks all

[Anonymous]

I did not (have not). My dad did. He was a CFO and Treasurer for a Fortune 50 and one of the world's largest charities. He knew about investing and money.

About 10-12 years into his annuity, he said it was the best investment he ever made. Perhaps not the greatest return, but it gave him certainty and, more importantly, security that when he died, my mom would continue to have a significant monthly cash flow for her life as well.

So for them it worked great. Like many things, it will depend upon what you want out of it. The answer will differ if your goal is to maximize returns.

[Anonymous]

Anonymous wrote:I did not (have not). My dad did. He was a CFO and Treasurer for a Fortune 50 and one of the world's largest charities. He knew about investing and money.

About 10-12 years into his annuity, he said it was the best investment he ever made. Perhaps not the greatest return, but it gave him certainty and, more importantly, security that when he died, my mom would continue to have a significant monthly cash flow for her life as well.

So for them it worked great. Like many things, it will depend upon what you want out of it. The answer will differ if your goal is to maximize returns.

This is exactly the kind is input I was hoping for! It was kind of you to share . Thank you.

Jane Bryant Quinn is not necessarily down on them like some are.

[Anonymous]

I have a FERS pension which will be about 25% of my salary— that plus SS should be enough to cover basic needs. If I didn’t have that I would definitely consider annuitizing some of my retirement savings so I had a guaranteed floor.

[Anonymous]

My dad did this a couple years before he died and it was the right choice. It was modest money ($300k?) and converting it to an annuity for my mom and it has simplified things. Nobody has to actively manage it and we don't have to give much thought - the checks just come.

If it was bigger money or somebody wanted to take it on, I am certain that better returns would be achieved. When she dies, it will all be gone and we're ok with that.

[Anonymous]

We have not. My husband is periodically tempted but we realistically can draw the equivalent of the annuity amount from principal for 30 years, longer than we could live. I like the sense of flexibility...we could blow it all on a trip, etc.

[Anonymous]

Anonymous wrote:We have not. My husband is periodically tempted but we realistically can draw the equivalent of the annuity amount from principal for 30 years, longer than we could live. I like the sense of flexibility...we could blow it all on a trip, etc.

Thank you. I am considering annuitizing 1/3 to 1/2 of my savings. The rest would go into stocks (to offset inflation).

It does seem they payout more than the 4% recommended for annual withdrawals from savings…but you might have much more than me.

I am considering an immediate simple annuity (have heard that the more complex, variable ones are not good) .

[Anonymous]

Remember to keep a stash of liquid assets to pay for an emergency. New roof. Moving. Getting $x a year is good but if you suddenly need x/2 or 2x that annuity won't do it

[Anonymous]

Anonymous wrote:

Anonymous wrote:We have not. My husband is periodically tempted but we realistically can draw the equivalent of the annuity amount from principal for 30 years, longer than we could live. I like the sense of flexibility...we could blow it all on a trip, etc.

Thank you. I am considering annuitizing 1/3 to 1/2 of my savings. The rest would go into stocks (to offset inflation).

It does seem they payout more than the 4% recommended for annual withdrawals from savings…but you might have much more than me.

I am considering an immediate simple annuity (have heard that the more complex, variable ones are not good) .

Yes — usually an annuity will pay out more than you could safely withdraw on your own because of the pooled risk/insurance factor