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- Dec 3, 2009
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Allow me to clarify.
I am not a financial planner. I go to one whom I trust.
For years I put money into a TSA diversified portfolio account. That money has grown, and is currently growing at an average of 10%. Since this is a diversified portfolio, the average means that some are growing faster, others slower.
Naturally, when the stock market hit the recession, my portfolio lost money. It has since made it up.
Since I am nearing retirement age, I have rolled this account over into an annuity. I was able to pick an option in which my money doesn't grow quite so fast, but I am guaranteed 5% of the money every year for the rest of my life. Since I've opted to wait another couple of years, that 5% will increase. Naturally, if the account continues to increase at a 10% rate, I'll be able to collect more, but I can't go below 5%.
Should I live to be 120, I will still be taking money out, even though the original amount will no doubt be gone by then.
Should I die young (well, relatively. It's too late for me to really die young now), then whatever is left after the payout goes to my estate.
To me, that sounds like "old age insurance." I am insured an income should I live past normal life expectancy.
Since my family has a history of longevity, I'm planning to collect everything and more.
I am not a financial planner. I go to one whom I trust.
For years I put money into a TSA diversified portfolio account. That money has grown, and is currently growing at an average of 10%. Since this is a diversified portfolio, the average means that some are growing faster, others slower.
Naturally, when the stock market hit the recession, my portfolio lost money. It has since made it up.
Since I am nearing retirement age, I have rolled this account over into an annuity. I was able to pick an option in which my money doesn't grow quite so fast, but I am guaranteed 5% of the money every year for the rest of my life. Since I've opted to wait another couple of years, that 5% will increase. Naturally, if the account continues to increase at a 10% rate, I'll be able to collect more, but I can't go below 5%.
Should I live to be 120, I will still be taking money out, even though the original amount will no doubt be gone by then.
Should I die young (well, relatively. It's too late for me to really die young now), then whatever is left after the payout goes to my estate.
To me, that sounds like "old age insurance." I am insured an income should I live past normal life expectancy.
Since my family has a history of longevity, I'm planning to collect everything and more.
