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A significant proportion of Americans are living longer than they anticipated. An income annuity is designed to protect against outliving one's assets. Mark Hulbert answers the question: "Do annuities have a place in your retirement portfolio?" Jeffrey Brown, Dean of the College of Business at the University of Illinois at Urbana-Champaign and director of the Retirement Research Center of the National Bureau of Economic Research describes the role of annuities: “the entire point of an annuity is to insure against longevity risk.”
"What is the right amount to allocate to annuities in your retirement portfolio? The answer, as you can imagine, depends on a whole host of assumptions."
"One clue comes from an analysis conducted by David Blanchett, head of retirement research at Morningstar. His focus was on deferred-income annuities, which differ from SPIAs in that their guaranteed payment begins at a later point. After analyzing more than 78,000 possible scenarios, each one of which represents a different series of assumptions, Blanchett found that the average optimal allocation across all scenarios was 30.52%."
https://www.marketwatch.com/story/do-annuities-have-a-place-in-your-retirement-portfolio-2018-11-14
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The current interest rate on I-bonds: 2.83% for bonds issued November 2018-April 2019.

https://www.treasurydirect.gov/indiv/products/prod_ibonds_glance.htm
This is an increase from 2.52% for the previous 6 months. 
Learn about I-Bonds: 
Rates & Terms

  • I bonds have an annual interest rate derived from a fixed rate and a semiannual inflation rate.
  • Interest, if any, is added to the bond monthly and is paid when you cash the bond.
  • I bonds are sold at face value; i.e., you pay $50 for a $50 bond.


Redemption Information

  • Minimum term of ownership: 1 year
  • Interest-earning period: 30 years
  • Early redemption penalties:
    • Before 5 years, forfeit interest from the previous 3 months
    • After 5 years, no penalty


Tax Considerations

  • Savings bonds are exempt from taxation by any State or political subdivision of a State, except for estate or inheritance taxes.
  • Interest earnings are subject to Federal income tax.
  • Interest earnings may be excluded from Federal income tax when used to finance education (see education tax exclusions).

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Saving for retirement is hard enough but now comes the real test: how to spend the money to provide maximum enjoyment without living too long and running out of money. Andrea Coombes, writing for NerdWallet, review the most popular strategies:
  • The 4% Rule (really a guideline)
  • Dynamic Withdrawals
  • The Bucket Strategy
and provides tips for whichever strategy (or combination) you choose to follow. Her article provides a brief primer on the 3 strategies but this is a decision that requires careful consideration and perhaps the input from a professional (one who is a fiduciary).
Keep in mind that an immediate life annuity will insure against running out of money before your run out of breath. Check out my posts on annuities.
Read Andrea's article: https://www.nerdwallet.com/blog/investing/retirement-withdrawal-strategies-which-should-you-use/
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When you retire, your monthly income stops unless you are one of the few retirees with a pension. "But there is a way to replace income no matter how long you live."

You can creat your own pension by buying an immediate annuity that pays guaranteed income for your life. 

A deferred annuity, which pays out in the future, lets your money grow tax-deferred until you start taking payments.

An immediate annuityprovides "income that replaces your salary or self-employment income, an income annuity insures against the risk of living longer than average."

An immediate annuity is "the only type of true longevity insurance. You transfer the risk to an insurance company in exchange for a premium."

"Risk-pooling and guarantees are what make lifetime annuities so valuable. With lifetime annuities, the 50 percent of people who die earlier than average subsidize those who live longer." You don’t know which half you’ll be in.

"You can self-insure against longevity risk by investing in stocks, bonds, and savings."  BUT! "You’ll need to save 25 percent to 40 percent more than with an annuity because you won’t have the advantage of risk-pooling, according to a Wharton Financial Institutions Center study."

Get the details from Ken Nuss at: https://www.mdmag.com/physicians-money-digest/personal-finance/create-more-retirement-income-cut-your-longevity-risk
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You're in your late 50s or early 60s (or older) and suddenly" retirement looms with terrifying urgency. Do you have enough savings? Is your money invested too aggressively — or not aggressively enough?"
Peter Finch, writing for The New York Times,  provides a suggested “five-year countdown to retirement” based on interviews with financial advisers, economists and retirees.
What are the key things to concentrate on each year? 5, 4, 3, 2, 1... retire!
Check out: https://www.nytimes.com/2018/07/06/business/retirement-five-year-plan.html
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