RE: Any financial guru's here?
March 7, 2020 at 5:26 pm
(This post was last modified: March 7, 2020 at 7:05 pm by Mr Greene.)
OK accountant hat on;
A fixed annuity gives you a fixed income that won't change whatever happens. (Short of your provider actually going bust)
An indexed annuity goes up and down with the average of the stock market, generally the trend of stock markets is up over the long term so might have been a decent option whilst you were saving into a pension scheme. However as an annuity the possibility is that your income will crash if the stock market does, ie a recession would you need to find a new income just when it's most difficult to do so.
A variable annuity would require setting up your own portfolio bearing in mind that you're going to be living off this.
A diversified portfolio means having investments in different sectors, (a lot of people invest in companies in one sector and then get stuffed when that sector tanks) The usual 'hedge' is bullion (Though the rules on bullion ownership may be different in the US) the received wisdom is that this should be 10% of the value of the portfolio. Everyone immediately thinks of gold where bullion is concerned however at ~£1000 per ounce it tends to exclude a rather large percentage of the population. Silver is far more obtainable. Avoid 'paper-gold' usually appearing as 'gld' if push comes to shove there'll be a queue around the block trying to claim the same bar.
4th Option; Salesmen never tell you about this because they don't get any commission, but it's your money and you can withdraw it as a lump sum.
Problem is once it's gone it's gone and you would have to be disciplined as you have a lump sum burning a hole in your proverbial back pocket.
One option is to invest in something like property and then live of the rent, though that comes with all the responsibilities of being a landlord. There are of course companies that will do the donkey work for a fee.
A fixed annuity gives you a fixed income that won't change whatever happens. (Short of your provider actually going bust)
An indexed annuity goes up and down with the average of the stock market, generally the trend of stock markets is up over the long term so might have been a decent option whilst you were saving into a pension scheme. However as an annuity the possibility is that your income will crash if the stock market does, ie a recession would you need to find a new income just when it's most difficult to do so.
A variable annuity would require setting up your own portfolio bearing in mind that you're going to be living off this.
A diversified portfolio means having investments in different sectors, (a lot of people invest in companies in one sector and then get stuffed when that sector tanks) The usual 'hedge' is bullion (Though the rules on bullion ownership may be different in the US) the received wisdom is that this should be 10% of the value of the portfolio. Everyone immediately thinks of gold where bullion is concerned however at ~£1000 per ounce it tends to exclude a rather large percentage of the population. Silver is far more obtainable. Avoid 'paper-gold' usually appearing as 'gld' if push comes to shove there'll be a queue around the block trying to claim the same bar.
4th Option; Salesmen never tell you about this because they don't get any commission, but it's your money and you can withdraw it as a lump sum.
Problem is once it's gone it's gone and you would have to be disciplined as you have a lump sum burning a hole in your proverbial back pocket.
One option is to invest in something like property and then live of the rent, though that comes with all the responsibilities of being a landlord. There are of course companies that will do the donkey work for a fee.
Quote:I don't understand why you'd come to a discussion forum, and then proceed to reap from visibility any voice that disagrees with you. If you're going to do that, why not just sit in front of a mirror and pat yourself on the back continuously?-Esquilax
Evolution - Adapt or be eaten.
