Thread regarding AT&T layoffs

CORRECTION

“@nc - very unreasonable for someone in their mid-50s”

Meant to type “@nc - very REASONABLE…..”

@nc - very unreasonable for someone in their mid-50s.

I think everyone should do what they’re comfortable with (just please educate yourself so you don’t get scammed).

For me it wasn’t a binary decision (i.e., annuity or not). I think we made a decision in our early 60s that was akin to diversifying my retirement income sources by investing in the following to cover our essential expenses:

1. Joint Immediate Annuity (covers ~25%) - used my lump sum from cash balance pension to fund (not indexed to inflation).

2. 20 year TIPS Ladder (covers ~25% and indexed to inflation).

3. CD Ladder (covers 50% until I’m 70 not inflation indexed but getting nominal 4% to 5% interest).

4. SS @ 70 (covers 50% after 70 and indexed to inflation).

Invested remaining assets in a 70/30 stock to bonds allocation for growth and further protection from inflation.

God willing, I’ll let you know in 30 years if this works out 😀.

I've personally been anti-annuity, due to fees, for decades, but when someone lays out a 6.75-7% real, RISK FRE, payout on part of my money, with a survivor benefit and return of cash, I'm all ears.

Maybe in your mid 60s. I'm going to retire at 55 and there's no way I'm going to lock up a huge amount of my retirement portfolio for an annuity with no adjustment for inflation. Yes you and your survivor still get a monthly payout when the principle is depleted but there's no return of cash to beneficiaries once it's gone.

I made a simple spreadsheet to calculate what the monthly payout equivalent would be after 15 years of inflation and ... no thanks.

@kz - private credit risks have been escalating ever since. This is not a static issue.

Someone tell OP that was 3 years ago

@fz - I did the same as you (Joint 20 yr certain SPIA from NYL through Fidelity). A SPIA may not be for everyone but I will say Fidelity “advisors” routinely suggest this type of annuity. They are not that hard to find.

Good luck all!!

b4 here again...

Remember, if your "wealth advisor" (salesperson) ALWAYS suggests taking the lump and investing it in an account they manage, they don't make any money if you're not paying a wrap fee or sales commissions.

Hourly, full fiduciary CFP's sometimes suggest greatly different portfolios. They work for you...

If you're with Fisher, a Dave Ramsey ELP, Voya, etc... You may be shooting yourself in the foot.

@b4 here

Tell me why anyone would thumbs down my post.

Do you sell wrap accounts at 1-1.5%?

Are you totally anti-annuity?

I've personally been anti-annuity, due to fees, for decades, but when someone lays out a 6.75-7% real, RISK FRE, payout on part of my money, with a survivor benefit and return of cash, I'm all ears.

Can you do better, maybe, some of my other money is in stock ETF's, but asset allocation and protecting some money is a real plan.

Dish! Don't just click a down thumb.

I ended up taking the lump and purchasing a 100% survivor joint lifetime annuity from New York Life. It pays almost $900/mo more than the company version with the same options, and it also refunds any part of the initial investment not paid out after both of us die to beneficiaries, an option not available with the company annuity.

This type of annuity is not a high commission product and can be difficult to find. It is light years different from smoke and mirrors variable products that are pushed due to high commissions paid. My hourly CFP recommended it, but she or anyone else in her practice doesn't sell them or anything else. We compared NYL, Schwab and Fidelity to get the best rate for the best payout with ZERO market risk.

https://www.investopedia.com/terms/c/cash-refund-annuity.asp

NY Life is rated far, far higher than Athene and has an exponentially larger asset base.

We have other investable liquid assets from the 401(k) and my wife's 403(b). Our monthly pensions are our "chicken money" while we stay invested with the other funds.

In most cases if you have already left the company, you can leave pension with Fidelity earning 3.9% until you’re ready or decide to roll over to IRA as lump sum. It’s Not financial advice, just a suggestion

Take the lum sum and run. Look at Delta and GM and half the other big companies that offered pensions. All the people got the shaft and lost most of their worth. DO NOT LEAVE YOUR MONEY!

sadly when I left mine can not be lump summed.. there's got to be a way to roll it into something else away from this company.

Absolutely taking the lump sum. I would never leave money with this group of mismanager.

That is why you take the lump sum and get out, people are living way longer than expected and many annuity pensions will be belly up sooner vs later, don't wait till your in your 70's and they tell you they will only pay you 40% of what your annuity should be, take the lump sum, invest wisely (and conservatively) so you have money all your life!