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  1. #1
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    monthly Income for Retired person ?

    Have been retired over 8 years looking for monthly income Have Cds paying 2.17 anything better must be safe,safe,safe . Be 75 in June

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  3. Stocks/Investments Moderator boneil's Avatar
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    #2
    My aunt just had a meeting with her financial advisor about annuities. She decided against it., and I agreed with her decision. But I could see that being an option in the right situation. But you need to understand what your getting and the fees associated with them. Other than that, maybe bonds. But you won't get much in returns without the risk.

    the bigger the return, the bigger the risk. And at 75, you can't really be taking any risk
    Knowledge is the Kryptonite of Liberalism

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    #3
    Dad was in his 80's, he had a lot of REITS. Claimed they would return around 7 %.

  5. Member
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    #4
    I'd certainly hate to be 25 years old starting to save for retirement with interest rates at a net zero and the stock market at an all time high.

    I've been 8 years retired, and still playing the stock market based mutual funds. And after withdrawing $40-50k per year from my Rollover IRA, I'm still up 20% from when I retired. I made my money prior to 2008, and am just trying to maintain current balances now and in the near future.

    But if you're 75 years old and very conservative, stick to bank CD's and Treasury Bonds for consistency.

  6. Member
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    #5
    Bamaman I'm with you . I still Play the stock market with mutual funds and have CD's and intend to stay very conservative ,Thanks guys for your insight.

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    #6
    .
    Last edited by tj; 08-22-2017 at 03:05 PM.

  8. Member
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    #7
    I've had good luck with preferred stocks - similar to bonds. Been making about 5%.
    2009 G3 Eagle 180 / 2009 Yamaha F115 / Minn Kota Maxxum 80

  9. Member
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    #8
    Need some market exposure to protect yourself against coming inflation.
    Stocks increasing dividend every year for 30+ years might
    be a place for some of your money. Keep CD money in short terms, as
    interest rate increases should boost their return going forward.
    imho
    Half empty or half full asks the wrong question ....

  10. Member
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    #9
    Indexed annuities are an option for the right person. You can expect an annual income of 3.9-4.5% based in your age when you elect to start receiving benefits. There is no market risk in these as long as you stay away from "variable" annuities. Most fees will range from .5%-1.5% annually but will not change the monthly income. It is similar to social security..lol..the longer you defer the income the more you will receive monthly but once elected, the monthly benefit will remain the same for the rest of you life and your spouse if you elect a joint benefit.

  11. Member
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    #10
    Quote Originally Posted by boneil View Post
    My aunt just had a meeting with her financial advisor about annuities. She decided against it., and I agreed with her decision. But I could see that being an option in the right situation. But you need to understand what your getting and the fees associated with them. Other than that, maybe bonds. But you won't get much in returns without the risk.

    the bigger the return, the bigger the risk. And at 75, you can't really be taking any risk
    Annuities are a decent option, but you must understand what you are buying which is not easy. Variable annuities can cost up to 4%/year in different fees. Fixed Index Annuities are very low cost and in lots of cases no cost. You will not get very good rates on fixed annuities right now.

    REITS are definitely a place to reach for yield but they are typically the first to take a hit when rates do start going up.

  12. Member
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    #11
    Now would not be a great time to buy them but some exposure to preferreds may give you some income without as much volatility as common stock. That being said they are interest rate sensitive and right now are expensive. Just something else to consider as maybe a small piece but as always consult with your financial adviser.

  13. Member
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    #12
    We have a pension that we need to pick a lump sum or the monthly payments ..... We've seen 3-4 Big name advisors and the first 3 said take the lump sum and give it to me .... The last one said take the monthly payments .... Im kinda of confused on who to believe .... The last guy say the annuity was better .... He ran it both ways and said its a wash .... He claims the annuity is at 6 % .... Now I'm not a numbers guy ....And hoping to make this look simple helps me understand it .... It appears he may be right .... Remember now im not a numbers guy here but the way it looks is ....They keep my money and pay me a rate ....It looks like its going to take 15 yrs to get my lump sum back ( The base amount ) Here is the numbers .... Lump sum 575k or 3k per month .... Since this is my wifes plan she would get the 3k monthly till she dies .... Do the numbers look right for the annuity @ 6 % ?...... Seems like 6% is a good number to me ....Is there something else we should know before we take the pension plan / annunity ? .... Or is there someone i can go to and get this confirmed .... One of the problems we are running into are the advisors take 2 weeks to get an appointment & than another week just to talk .....

  14. Member
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    #13
    I am almost always a take the lump sum kinda guy because it keeps you in control. It sounds like y’all are considering the life only annuitization option. If this is the case then once she dies the payments stop. I don’t like the idea of them telling me what I can get each month and not a penny more. What happens if someone gets sick and y’all need $6,000 per month? I have been in this business this for 18 years and will be happy to answer any questions. Shoot me a PM so I can get more to be able to run the numbers. Will need wife’s age and some other things.

    ETA: from reading what you posted I would guess that the payout rate might be around 6%. It is not the internal rate of return (IRR). Part of every monthly payment is part of principal (your money). There is no place to be able to get a 6% IRR right now.
    Last edited by janky; 12-01-2017 at 06:48 AM.

  15. Member
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    #14
    Yep ,just noticed my credit union just raised cd rate LOL gonna stay safe.

  16. Member
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    #15
    I'm 74 and still in mutual funds, bonds funds, individual stocks with about 40% exposure. The balance is in fixed investments. I don't think that a person should be totally out of the market just because you are retired. A good CFP can help you to continue to make money in the market. Diversification is your friend.

  17. Member
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    #16
    Quote Originally Posted by bulletbob20xd View Post
    We have a pension that we need to pick a lump sum or the monthly payments ..... We've seen 3-4 Big name advisors and the first 3 said take the lump sum and give it to me .... The last one said take the monthly payments .... Im kinda of confused on who to believe .... The last guy say the annuity was better .... He ran it both ways and said its a wash .... He claims the annuity is at 6 % .... Now I'm not a numbers guy ....And hoping to make this look simple helps me understand it .... It appears he may be right .... Remember now im not a numbers guy here but the way it looks is ....They keep my money and pay me a rate ....It looks like its going to take 15 yrs to get my lump sum back ( The base amount ) Here is the numbers .... Lump sum 575k or 3k per month .... Since this is my wifes plan she would get the 3k monthly till she dies .... Do the numbers look right for the annuity @ 6 % ?...... Seems like 6% is a good number to me ....Is there something else we should know before we take the pension plan / annunity ? .... Or is there someone i can go to and get this confirmed .... One of the problems we are running into are the advisors take 2 weeks to get an appointment & than another week just to talk .....
    Here's one variable you need to understand.... No one knows how long they will live. So, if you take the lump sum you guys have the entire amount of money outright. You just have to manage it. If you take the monthly payouts once she passes it's over and the payments stop. If it's basically a wash as you stated I'd think you'd want to have control of the funds.

  18. Banned
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    #17
    original poster, its too late to be making changes looking for more income, that time would have been years ago, I have all 5-6.5 % paying bonds and cd spread out in a ladder thru 2040, unfortunately because of the lower rates theyve been calling several of mine a year.

    To bulletbob take the lump sum, walk into a ed jones or 3 and find a person you like. With the lump sum you have something to leave your family if you dont out live the payments.

  19. Member
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    #18
    Jeff Not really looking to make a lot more income ,Just trying to keep up with the times .

  20. Member
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    #19
    I am just glad to have made the returns on my investments through the 70s to the 2000s. I would hate to start an investment portfolio today with the stocks at an all time high and net zero percent savings accounts.

    And the millentials are buying big houses, luxury houses and driving BMWs like there is no tomorrow. They don't get it that old mom and dad are going to spend our 401Ks and there will be just a little left over for them 30 years from now.

  21. Member
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    #20
    If they started in 2008 with a large sum, they are probably doing pretty well today. If they bought a new home in 2009 they have probably done pretty well too. Now they have to just hang in there and trust the process.

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