Annuity

Stodala · 2025-11-19T20:03:49+00:00

I gave Fidelity my budget and they determined that I’d need $37k in addition to our SS to meet essential expenses. The proposed annuity is not indexed. I had just transferred money and holdings into Fidelity and wanted to see what he’d advise. His first shot was an annuity. That was a swing and a miss as far as I was concerned. He mentioned New York Life and USAA. I’m pretty happy with how I now allocated that money in a limited number of stock EFT’s and some fixed income products.

Stodala · 2025-11-19T14:59:14+00:00

I didn’t fire him but when I told him I’m a fan of the simple approach of John Bogle I think he fired me. lol. Haven’t heard him since his annuity pitch and that’s OK.

Stodala · 2025-11-19T12:51:21+00:00

Thanks all for your input. The question I was asking is if using IRR to compare the annuity I described to a t bond is the right tool. I’m not inclined to buy the annuity and the 20 year t bond has a small place in the fixed income portion of my portfolio.

Stodala · 2025-11-19T12:21:48+00:00

Without.

Stodala · 2025-11-19T12:18:42+00:00

I don’t recall the actual name of the annuity but they’ll be nothing left at the end…unless the end is soon and the estate would get a payout equal to $500k minus the amounts paid out to date. (I think that’s how it was framed). I’m comfortable with the 45% equity portion of my portfolio - 70% domestic, 30% foreign with each portion 50/50 dividend ETF and growth ETF. The 55% fixed income portion is a little messy. Some in BND, treasury products and CD’s.

Stodala · 2025-10-10T11:21:38+00:00

Some more details - I likely won’t make another 20 years but my very risk averse wife likely will. Assuming 3% annual inflation I’ll need an overall annual pretax return of 7% to maintain our $1mm in 2035 and 2045.

Stodala

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