Retirement advice

[WhizkidTN]

Originally Posted by Vuflanovsky
The overriding factor in this is probably understanding what you're investing in and I don't know if the personal friend advisor is a double edge sword or not in this situation...but annuities are inherently ( and purposely ) complicated beyond not being appropriate for the majority of people vs. other options....especially at age 34. For example, if any annuity you're considering contains a surrender charge where you can't can't get out of it for 7-8 years without an outrageous percentage of it as a penalty, then I wouldn't invest in it to begin with, etc. Does the idea cross your friend's mind..." It's only 18K, he won't hate me for that"...LOL

I'd consider this a suggestion thread with the crux of it being that whatever you get into, you fully understand its drawbacks, restrictions, pros/cons, and how those impact your situation if you change your mind. With annuities, that can be very difficult when these folks are commission-based versus being a fee-based advisor where at least a fiduciary duty can mean something. ...not to mention the typical performance difference versus what a couple in their 30s could do on their own over 30 plus years. IMO, any "guarantees" associated with annuities are greatly discounted in that long a time line possibly to the point of irrelevance.


Very well said!

 

[grampi]

Originally Posted by Donald
Hold off taking Social Security until FRA, preferably 70.



Blanket statements like this could be bad advice. What if one, or both have a family history of people dying at young ages? Also, there's the matter of how long it will take to recoup the money they would've collected from age 62 if they wait until age 70. They may not live that long either. Deciding at what age to take SS is a gamble, no matter how you look at it...I'm taking mine at 62 because the men in my family tend not to live very long...

 

[Wolf359]

Originally Posted by grampi
Originally Posted by Donald
Hold off taking Social Security until FRA, preferably 70.



Blanket statements like this could be bad advice. What if one, or both have a family history of people dying at young ages? Also, there's the matter of how long it will take to recoup the money they would've collected from age 62 if they wait until age 70. They may not live that long either. Deciding at what age to take SS is a gamble, no matter how you look at it...I'm taking mine at 62 because the men in my family tend not to live very long...


I think we had this conversation before. Basically it's a gamble as to how long you're going to live. It's a gamble either way. It's supposed to be neutral and it's based on an average death at 82. So if you live longer, it's better to wait as long as you can. If you think you're going to die before 82, then take it sooner. The standard gamble is to wait longer because their numbers are off and people live on average longer than 82.

 

[PimTac]

Originally Posted by Wolf359
Originally Posted by grampi
Originally Posted by Donald
Hold off taking Social Security until FRA, preferably 70.



Blanket statements like this could be bad advice. What if one, or both have a family history of people dying at young ages? Also, there's the matter of how long it will take to recoup the money they would've collected from age 62 if they wait until age 70. They may not live that long either. Deciding at what age to take SS is a gamble, no matter how you look at it...I'm taking mine at 62 because the men in my family tend not to live very long...


I think we had this conversation before. Basically it's a gamble as to how long you're going to live. It's a gamble either way. It's supposed to be neutral and it's based on an average death at 82. So if you live longer, it's better to wait as long as you can. If you think you're going to die before 82, then take it sooner. The standard gamble is to wait longer because their numbers are off and people live on average longer than 82.




If your family history is not favorable to a long life and you want to take SS at 62 but don't necessarily need it then one idea would be to take it and invest it.

I do agree on the blanket statement thing. Not everyone can or should wait until FRA or 70.