How using a deferred income annuity can increase retirement income compared to an immediate annuity or a bond ladder. Topics covered include: Show Notes Post: No, really. Deferred income annuities (DIAs) are superior to SPIAs in every way by Boglehead User "GoWithTheCashFlow"—Bogleheads Actuarial Life Table—SSA TIPSLadder Safety-First Retirement Planning: An Integrated Approach for a Worry-Free Retirement by Wade D. Pfau—Retirement Researcher Episode … [Read more...]
470 Plus: Annuities Correction, Europe versus U.S. Value Stocks, Analyzing BOXX, and Accredited Investor Rules
In Plus episode 470, we correct a misstatement about immediate annuities. We explore whether European stocks can be a replacement for U.S. value stocks. We analyze the Alpha Architect 1-3 Month Box ETF (BOXX), which has used an options strategy to replicate the return of Treasury bills without generating ordinary income. Finally, we consider why the U.S. and other countries have rules that limit who can invest in alternative investments. Become a Member If you would like to … [Read more...]
468 Plus: Immediate Annuity Yields, LifeX Funds, and Restricted Stock Units
In Plus episode 468, we review the safety-first retirement approach using guaranteed income sources. We explore a surprising insight about immediate annuity payout rates as interest rates increase. We analyze the Life X family of mutual funds that have an immediate annuity twist. Finally, we look at whether one should sell their restricted stock units after they vest. Become a Member If you would like to listen to this episode of Money For the Rest of Us Plus, you can do so by … [Read more...]
462 Plus: Immediate Annuities, More on Closed-End Funds, and Currency ETFs
In Plus episode 462, we review why one might want to buy an immediate annuity to help fund retirement expenses. We consider the Cohen & Steers Closed End Opportunity Fund (FOF). Finally, we discuss using an ETF to speculate on currencies. Become a Member If you would like to listen to this episode of Money For the Rest of Us Plus, you can do so by becoming a Money For the Rest of Us Plus member. Learn More About Membership Options » 462 Plus Investments … [Read more...]
455: Easier Investing, Richer Life: TIPS Ladders to Annuities
What are the pros and cons of partially funding retirement expenses with an inflation-indexed bond ladder versus an immediate annuity? There is a big downside to TIPS ladders that many investors don't realize. Topics covered include: Show Notes Effortless: Make It Easier to Do What Matters Most by Greg McKeown Essentialism: The Disciplined Pursuit of Less by Greg McKeown Skin in the Game by Nassim Nicholas Taleb Worry-Free Investing: A Safe Approach to Achieving Your … [Read more...]
407: Worry-Free Retirement Investing
How to use laddered inflation-indexed bonds (i.e., TIPS), CDs, fixed annuities, and fixed index annuities to meet retirement living expenses while worrying less about running out of money. Topics covered include: Show Notes Worry-Free Investing by Zvi Bodie and Michael J. Clowes Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity, Quoted on an Investment Basis, Inflation-Indexed—FRED Market Yield on U.S. Treasury Securities at 5-Year Constant Maturity, … [Read more...]
400 Plus: Annuities Follow Up, TIPS Underperformance, and Rights and Warrants
In Plus episode 400, we answer a follow-up question on annuities from Plus episode 398. We look at why Treasury Inflation Protection Securities have had a negative return year-to-date even though inflation has been high. Finally, we review what rights and warrants are and why companies and funds issue them. Become a Member If you would like to listen to this episode of Money For the Rest of Us Plus, you can do so by becoming a Money For the Rest of Us Plus member. Learn More … [Read more...]
398 Plus: Immediate Annuities, Mortality Credits, Leveraged ETFs, and Valuing Pensions
In Plus episode 398, we analyze how much immediate annuity payments have increased as interest rates have risen. We review why payouts on immediate annuities are higher than on a bond ladder. We consider why some leveraged ETFs and ETNs survive and others don't when markets decline. Finally, we look at whether pensions can be considered part of one's net worth, and how to value them. Become a Member If you would like to listen to this episode of Money For the Rest of Us Plus, you … [Read more...]
326: The New Math of Retirement Spending and Investing
How should individuals invest and spend in retirement with interest rates so low, stock valuations high, and inflation uncertain. Why retirement managed payout funds and income replacement funds failed. Topics covered include: How managed payout and income replacement funds compare to immediate annuitiesWhy Vanguard and Fidelity changed the objective of their retiree focused income replacement and managed payout fundsHow fixed annuities workHow retirees should combine annuities with … [Read more...]
313 Plus: Advisors for Ultra High Net Worth Individuals, Annuities, Trading, and a Commercial Real Estate Update
In Plus episode 313, we assist a member who is seeking an investment advisor. We consider the role of investment-oriented annuities in a portfolio. We answer a member's question about trading. Finally, we review the commercial real estate market as a member who is looking to buy a rental office has not seen prices fall despite the recession and pandemic. Become a Member If you would like to listen to this episode of Money For the Rest of Us Plus, you can do so by becoming a Money … [Read more...]
