My deferred fixed annuity offers great peace-of-mind!

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My deferred fixed annuity offers great peace-of-mind!

Postby JohnSwanson » Fri Jul 27, 2018 2:57 pm

Like nearly everybody else on this message board, I didn't accrue pension for a big chunk of my career!
Since I'm missing pension for 11 years (2 while at at Lucent and 9 at Avaya), I needed to find a way to
leverage my IRA so that it lasts for the rest of my life!

Late in 2015 I rolled most of my Avaya 401K account into a Vanguard IRA so that I could purchase an
Integrity Insurance deferred fixed annuity. I chose Integrity because this insurer is top-rated and I like
my policy's 6.6% annual yield. I used half of my assets to purchase my policy in March, 2016 and the
annuity payments started this past May. I assume that one of the reasons that my policy offers a relatively
high yield is that the insurer sat on my money for 26 months. While I was waiting for my policy to
annuitize, I lived on my pension and the money that I left in my 401K.

My plan is to withdraw a relatively small amount from my IRA each year until I reach my full retirement
age (66 years, 8 months) and I'm eligible for my full Social Security payment. Then the money in my IRA
becomes my Old Age Emergency Fund. I decided to wait until my FRA because, when the SS trust fund goes
bankrupt early in 2034, I want 79% of the larger FRA payment, instead of what I'll get if I took SS earlier.

Mathematically, my plan makes great sense and now I sleep great! :)

John
JohnSwanson
 
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