OT Retirement and Annuities

[Luv those Knicks]

Does anyone here know anything about retirement investing?

I've been considering a few options. One - buying property, but that would basically use up all my savings. I'm also leaning towards renting during my old age - advantage to renting, I can move around. See more of the world. Even spend some time overseas. Several nations offer cheaper than US costs of living. A friend of mine loves Mexico. Another friend lives in Thailand and swears by it.

Not that I couldn't own and travel, but with limited retirement savings, not owning and traveling might be easier.

or own and rent to roomates, but that can be a real hastle.

But . . . that's not my main question - I'm not ready to buy so that question is a few years off.

Question is, thoughts on annuities? Like, I put down $100 K now, and at an age I decide later one, I get back 10K per year, 11 K per year, maybe 12 K per year, with increases every year. It's like investing, but it's guaranteed return. Downside is, if I die young, I get next to nothing, but if I live to 105, (like Joe Biden), I'll probably be happy I invested the 100K.

And I know there are different types of annuities, I'm looking at the type that pays dividends for the rest of my life, something to boost my social security income for retirement.

I hate investing in the market right now, inflation can drive down the market. It feels too risky.

Are there standard recommended percentages for someone about 60? 25% in an annuity, 30% in real estate, 30% in the market (which scares the hek out of me) maybe 15% in bonds (annuity returns feel stronger than bonds unless someone pays a high tax rate).

Does anyone have any thoughts or recomendations for general guidelines?

I"ve talked to two retirement specialists and so far I dislike both of them.

Thanks.

[Kampuchea]

Buy some SGOV right now for some low risk 5% annual yield. It pays out monthly.

You could buy some Reits for real estate exposure without the headache or risk of dealing with individual tenants.

[Kampuchea]

And Cambodia or Thailand would be good retirement choices. I think you can get by on $1k per month, $2-3k and your living well. But you wont have health insurance, some people risk it since it’s so costly.

[Luv those Knicks]

Buy some SGOV right now for some low risk 5% annual yield. It pays out monthly.

You could buy some Reits for real estate exposure without the headache or risk of dealing with individual tenants.

I don't need money now, but I'll probably need it later. Getting 10% on investment 7 years from now feels safer than getting 5% now, until rates go down.

Not that some short term investment is bad, but it's not the long term plan I'm trying to figure out.

[Luv those Knicks]

And Cambodia or Thailand would be good retirement choices. I think you can get by on $1k per month, $2-3k and your living well. But you wont have health insurance, some people risk it since it’s so costly.

There's nothing wrong with planning a retirement overseas, but that wasn't what I was talking about. I'm not ready to give up living in the USA just yet. I was looking at maybe a few months at a time. Maybe if I fall in love with a place, but I don't see that for me right now.

Has nobody here looked at retirement and who wants to swap ideas, offer suggestions, etc? Retirement isn't the sexiest thing to talk about, but it is important.

[aggo]

annuities are generally bad strategies as you'll get lower return relative to regular investing (sp500/bonds).

spending the majority of your savings post 50 years old as a downpayment on a house is also a bad idea. you're buying an asset that will be difficult to move, and if you ever do need to access your equity, you are likely to make decisions with lower expected outcomes.


as usual the answer is to simply buy the index in a retirement account or investment account.

its highly liquid. you can wake up tomorrow and sell in a blink of an eye
it will correlate to the highest return on your money
you keep your options open for planning to live overseas.

[ccvle]

income is just half of your equation. The other half is your spending. Do you qualify for free healthcare after retirement ? You may not need much healthcare when you are 60 or 70, but you will need it eventually. I think some people think of retirement as a single stage in life, but there are multiple phrases. There is the initial stage when you just "retired" from work and you want to go out and enjoy life and is still physically active, then there is the later stage when you are just laying on bed waiting for someone to clean your mess.

[Luv those Knicks]

annuities are generally bad strategies as you'll get lower return relative to regular investing (sp500/bonds).

spending the majority of your savings post 50 years old as a downpayment on a house is also a bad idea. you're buying an asset that will be difficult to move, and if you ever do need to access your equity, you are likely to make decisions with lower expected outcomes.


as usual the answer is to simply buy the index in a retirement account or investment account.

its highly liquid. you can wake up tomorrow and sell in a blink of an eye
it will correlate to the highest return on your money
you keep your options open for planning to live overseas.

The market scares me. Trump's tarrifs should create inflation, which raises interest rates, which should cause the market to fall. I'm sure the insiders will short and come out fine, but I don't know if I trust the market.

That said, it's probably a good idea to go 30%-50% in the market just as a long term investment, because over the long run it goes up. Maybe 20%-30% in bonds. If people want to speculate, they can go bitcoins 5%-10%, maybe more if they're well off, but I worry about those personally.

I'm torn on annuities. Most people say what you say, but it feels like if there's a market crash again, it would turn into a good investment. I'm leaning towards like 20% into an annuity for cash when I get older, but . . . Nobody seems to like them. Everyone says they're bad so . . . If I end up living to 110, annuities are probably a very good investment. Depends on how long I live.

I think you're probably right on owning property, which is sad. I'd like to own a place, but it might be outside my means. Or, maybe I'll work for the next 15 years and solve that problem.

I don't need to decide everying today and I appreciate the suggestions.

[Luv those Knicks]

income is just half of your equation. The other half is your spending. Do you qualify for free healthcare after retirement ? You may not need much healthcare when you are 60 or 70, but you will need it eventually. I think some people think of retirement as a single stage in life, but there are multiple phrases. There is the initial stage when you just "retired" from work and you want to go out and enjoy life and is still physically active, then there is the later stage when you are just laying on bed waiting for someone to clean your mess.

Most Americans get free healthcare at 65, so long as you pay for the Medicare supplement. Well, at least until Trump blows up medicare, so . . . time will tell.

I don't know how to plan for an unknown as big as that. That's too hard, too big and too much to plan for. How does anybody plan for that? Some of the numbers for nursing homes are exorbitant and way beyond my means.

Some estimates say, spend 4% of your savings to live after you retire. I probably need to work for several more years. That's what the numbers are telling me.

[thebuzzardman]

Hookers and blow to go through all the retirement funds, a glock for when they run out and it's time to turn off the lights

[Luv those Knicks]

Hookers and blow to go through all the retirement funds, a glock for when they run out and it's time to turn off the lights

Nothing wrong with blowing some money on strip clubs and hookers. I'm going to say no to blow, however. Not judging, just not for me.

And maybe go to Cambodia or Thailand for my final years, where I can afford nursing care. Not the worst idea I've heard.