TSP Annuity VS monthly payments...can u provide any insight??

[nnuut]

I agree I'd never buy an Annuity!
Hey there SkyPilot Nice to hear form you again!
Norman

 

[SkyPilot]

I agree I'd never buy an Annuity!
Hey there SkyPilot Nice to hear form you again!
Norman

I am trying to behave! :nuts:

 

[tsptalk]

I am trying to behave! :nuts:

"Just when I thought I was out, they pull me back in."

-- Michael Corleone
The Godfather: Part III

 

[survivedfriendlyfire]

Thank you all . . .I am now pretty much convinced that when the time comes I am not going to get an anuity. It just does not make sense.

I'm planning on not needing to use it so it makes even more sense to simply leave it where it is and watch it grow. Turtle wins the race.
But, I may have to manage it a little and not simply all G fund if inflation spikes up.
Thanks for all of your reinforcement!

 

[nnuut]

Thank you all . . .I am now pretty much convinced that when the time comes I am not going to get an anuity. It just does not make sense.

I'm planning on not needing to use it so it makes even more sense to simply leave it where it is and watch it grow. Turtle wins the race.
But, I may have to manage it a little and not simply all G fund if inflation spikes up.
Thanks for all of your reinforcement!

While it's still in TSP you can take Monthly distributions, that can be changed once a year. Just like an anuity, but you have to take mandatory distributions when you reach 70 1/2 years old.

 

[mayday]

http://www.cbiz.com/page.asp?pid=4726
Take a look at this site if you do not what to take a penalty for early withdraws.

 

[nnuut]

Hello MayDay, nice to hear from you!
Norman

 

[mayday]

Hi Norm: I have been out of touch for awhile. I recently retired.

 

[SkyPilot]

"Just when I thought I was out, they pull me back in."

-- Michael Corleone
The Godfather: Part III

Best movie ever made...

 

[nnuut]

Darn it's SkyPilot, must be old home week or something? Welcome back, did you just get back froma another trip or something?
Norman

 

[jsperl]

a very small percentage of retirees purchase an annuity with their tsp funds. retirees do not like turning over all of their money and once the annuity is purchased, you cannot change your mind. you can experience "buyers regret", not a good feeling. but.....
if and when the annuity rate index increases to a reasonable%(2-3 years), i think an annuity is worth looking at. it is a much better option than most people think. i think more thought has to go into it, before dismissing an annuity option.

 

[SkyPilot]

a very small percentage of retirees purchase an annuity with their tsp funds. retirees do not like turning over all of their money and once the annuity is purchased, you cannot change your mind. you can experience "buyers regret", not a good feeling. but.....
if and when the annuity rate index increases to a reasonable%(2-3 years), i think an annuity is worth looking at. it is a much better option than most people think. i think more thought has to go into it, before dismissing an annuity option.

In what way is it a "better option than most people think"?

What would you consider a reasonable rate? Do you have any personal experience with an annuity (or do you sell them?).

http://www.tsptalk.com/mb/showthread.php?t=5907&highlight=annuity