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Retirement Income: Six Ways To Earn $1,000 A Month

Wednesday, March 16, 2011 - 6:05 AM
There is probably nothing that will surprise you in this list, but this Wallet Pop post does provide some basic options for retirees to earn $1,000 a month such as a single-premium immediate annuity and a reverse mortgage.
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Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,743
1. Thursday, March 17, 2011 - 8:52 PM
I guess it should come as no surprise that SPIAs return longevity (aka reverse life expectancy) and very, very little interest these days. You can do ever, so ever much better, structuring your own "annuity" by cutting out the middle-man. By carving your retirement assets into segments, you can "structure" a 15-year annuity from a portion thereof. using pen and paper (if you want SWRs) or Moneychimp (if you can abide a level-payment scheme). Sellers of annuities generally market on "fear factor" (OMG, will I run out of money), without telling you about the severe haircut their commissions and annual fees cut into your payments. I structured my own self-directed annuity years ago. It's not rocket science. Fund your self-directed annuity with longish CDs (which yield more than equivalent Treasuries). For the "black swan" (i.e., you live to 115), leave ample assets in your portfolio to pay for essentials, little else. That having been said, my Mom is 95 (going on 96) and Northwest Mutual has lost a potload on her annuity, I suspect. But, then, it was funded when interest rates were around 15%.
6
BozoBozo135 posts since
Feb 14, 2011
Rep Points: 917
2. Sunday, March 20, 2011 - 7:20 PM
ANNUITIES ARE FOR FOOLS.  The scum selling them are  , well  --scum. 

 
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diamondxdiamondx63 posts since
Jan 19, 2011
Rep Points: 151
3. Sunday, March 20, 2011 - 8:57 PM
Making generalized statements about all annuities glosses over the fact that they come in many varieties, some of which might be worthwhile in certain circumstances for some people. My father has owned an fixed-rate "CD type" annuity from ING that is paying a guaranteed rate of 6.25% for 10 years . . . it ends in March 2012. Given the fact that he hasn't needed to surrender the policy prematurely, I think almost any reader here would agree that it was a good investment. And, he is surely going to miss that 6.25% return when its over!
6
WilWil242 posts since
Feb 26, 2010
Rep Points: 1,281
4. Tuesday, April 19, 2011 - 11:47 AM
I found an interesting site Retirement income, I'm still researching the information from that site to see if its feasible for the average person.
1
kowingskowings1 posts since
Apr 19, 2011
Rep Points: 1
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