I am about 2 years from retirement (will be 62), and we recently started meeting with a financial advisor.
Our house will be paid off next month and we have almost 4 million in various IRA and TSP Accounts with about 80% stocks and 20% bonds. We have about $140,000 in cash/cd's and $150,000 in various stocks.
I also will get a pension when I retire that along with an inherited RMD should cover almost half of our planned monthly retirement income.
Our advisor has discussed risked vs protected asset allocation balance during retirement which is fine. He is not a fan of bonds and is suggestion for our protected portion we consider annuities. We have not gotten to the specific details yet but me talked about an Index Income Annuity which would pay about 4% and an Index Growth Annuity which would pay between 5-7% and up to 10%.
I understand the reasoning of wanting guaranteed income in retirement and I am waiting to see the specifics but I'm wondering if an annuity on top of my pension makes sense. Looking at our expenses, I am guessing we will want about $4000/month on top of my pension (until we start Social Security), My Social Security at age 67 would be about $4000 if I take it then. Before talking to the advisor my plan after retiring was to use our cash to supplement the pension while selling enough stock to avoid capital gains taxes each year. Also, move more of my TSP into the G fund and withdrawal from that as needed until I take SS. I have about $500,000 in TSP.
Does an annuity make sense in my case? I want to be open minded and will wait and see if the details convince me, but I keep wondering if I am fine with what I have and just reallocate my funds.
Our house will be paid off next month and we have almost 4 million in various IRA and TSP Accounts with about 80% stocks and 20% bonds. We have about $140,000 in cash/cd's and $150,000 in various stocks.
I also will get a pension when I retire that along with an inherited RMD should cover almost half of our planned monthly retirement income.
Our advisor has discussed risked vs protected asset allocation balance during retirement which is fine. He is not a fan of bonds and is suggestion for our protected portion we consider annuities. We have not gotten to the specific details yet but me talked about an Index Income Annuity which would pay about 4% and an Index Growth Annuity which would pay between 5-7% and up to 10%.
I understand the reasoning of wanting guaranteed income in retirement and I am waiting to see the specifics but I'm wondering if an annuity on top of my pension makes sense. Looking at our expenses, I am guessing we will want about $4000/month on top of my pension (until we start Social Security), My Social Security at age 67 would be about $4000 if I take it then. Before talking to the advisor my plan after retiring was to use our cash to supplement the pension while selling enough stock to avoid capital gains taxes each year. Also, move more of my TSP into the G fund and withdrawal from that as needed until I take SS. I have about $500,000 in TSP.
Does an annuity make sense in my case? I want to be open minded and will wait and see if the details convince me, but I keep wondering if I am fine with what I have and just reallocate my funds.
Statistics: Posted by Blackwing27 — Sat Feb 01, 2025 4:28 pm — Replies 15 — Views 565