You do have quite a comfortable amount of retirement assets at 40X expenses. You probably don’t NEED a SPIA.Have you purchased a SPIA inside an IRA? Any lessons learned or issues to avoid? Did your spouse do the same? Thanks.
However, I understand that you may WANT a SPIA in order to have a regular monthly “paycheck” during retirement. I know the feeling exactly. I chose to take my defined benefit pension as a monthly income, rather than a lump sum, when I retired a few years ago, and my thought process was very similar to yours.
While I have not purchased a SPIA with IRA funds, I have purchased several other annuities (in my case, MYGAs) with IRA funds. It was an easy process. Working through Blueprint Income or another agency, I just signed a paper authorizing the insurance company to pull funds from my Vanguard IRA. Just a little more paperwork, and a little more elapsed time, than buying with taxable money.
A couple of suggestions -
—- SS is the best inflation adjusted annuity you can get. I encourage you to consider deferring SS until age 70.
—- Be aware of the guaranty fund coverage limits for your state. I’d feel comfortable in exceeding those limits only for the very highest rated companies like New York Life and Mass Mutual.
Post back with questions
Statistics: Posted by Stinky — Wed May 29, 2024 9:19 pm