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%)
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 Jmlrn — Fri Sep 13, 2024 11:58 am — Replies 4 — Views 150