Construct your own Annuity. Purchase a couple diversified bond mutual funds with different terms and durations. Set up an automatic withdrawal for the amount and term you need. Walaa, no commission no surrender fee if you need the principle at any time.Expected retirement date 10/31/24. Will take survivor SS benefit of $2000 starting 12/24. $700 pension begins 5/25. Monthly expenses $6000. Would like to spend a bit more to add in some travel while I am young and fit enough to do so. I consulted a fee only fiduciary CFP who suggests purchasing a 5 yr bridge annuity now within the 403b (so no lump sum tax event) for $200,000 at 4.25% which will pay out $3500 starting 5/25 until I am 70 and can collect $3900 of my own SS benefit. This seems to be the best rate at the moment for a 5 yr annuity like this. Fees are built in. Beneficiary gets the payout if I die before the term is over. CFP gets no kickback, I can purchase myself. He also suggests a 20/70 allocation except ROTH which would be 70/30. I do want to spend more years 65-70 for more travel experiences but I am not extremely risk adverse. My gut feeling is not to go along with this plan. Has anyone purchased a certain annuity -bridge annuity- like this and regretted it?
Emergency funds: 2 years of living expenses can be covered from High Yield Savings and checking $129,537 plus $20,593 in CDs at 5% maturing in early 2025
Debt: None
Tax Filing Status: Single
Tax Rate: 24% Federal, 5.6 % State
State of Residence: MA
Age: 64
Desired Asset allocation: 60% stocks / 40% bonds or 50/50
Total Assets: $991,665 – not counting home. Can’t downsize. Reverse mortgage would be the only consideration.
Taxable:
403b at Fidelity $ 426,217
Vanguard Retirement 2025 Fund - VTTVX (0.080%)
Brokerage at Fidelity $5256
Fidelity 500 Index Fund –FXAIX- (0.050%)
Traditional IRA at Vanguard $178,277
Vanguard Total Bond Market ETF –BND (0.030%)
Vanguard Total Bond International Bond Index ETF – BNDX (0.070%)
Vanguard Total Stock Market - VTI (0.03%)
Brokerage at Vanguard $37,054
Vanguard Total Stock Market –VTI (0.03%)
Vanguard Total International Bond Index ETF –VXUS (0.080%)
After Tax
ROTH IRA Brokerage at Vanguard $202,535
Vanguard Total Stock Market ETF –VTI (0.30%)
Vanguard Total International Stock Index Fund ETF –VXUS (0.080%)
Statistics: Posted by Cah — Fri Sep 13, 2024 9:52 pm