I almost hate to ask, with the economy in the crapper and so many people hurting these days...

I will be retiring soon :mm:, and taking a lump sum from my employer instead of monthly pension payments. I will be using the money to purchase an immediate annuity, which will provide Mrs Stocker & I with monthly income for life. I have been talking with a financial planner and doing online research about annuities.

But what better place to get financial advice than an online truck forum? :)

Seriously, I would like to know if anyone has done this, and what their experience was like, good or bad. Any regrets, anything in particular to look out for, any problems with a certain company.... anything that I should be aware of before I hand my financial future over to some rock-solid *cough cough* financial conglomerate?

I'm 120 months and 42 days away from retiring :( (Age 49.5)

I can't help, but I am kinda curious as to the replies you get.

PS - I am actually 39.5 now, the age I listed is when I will :D

If I were you, I'd contact Ray Lucia. I often listen to him on the local financial AM radio station.
https://www.rjlwm.com/
http://www.businesstalkradio.net/weekday_host/rl.shtml

It's amazing what some people call in with, "financial planners" hosing their clients for the fees. Almost everything I've heard from his shows sounds like excellent advice.
He offers free seminars around the country, and free webinars. I have quite a few years left to wait, and even more after my pension and 401k tanked(union controlled-I'm powerless until 65), but I plan on following his advice.

The other person I'll listen to in the daytime is Clark Howard.
http://clarkhoward.com/

I don't listen to Dave Ramsey much, it's broadcast at 7:00 PM local here.

But do your own homework, and grill the "planners", after all it is YOUR life you are puting in their hands!

But what better place to get financial advice than an online truck forum? :)

http://www.bogleheads.org

:mm:

http://www.bogleheads.org
Very interesting site, thanks for the link! Who'd a thunk it, Bogleheads -- makes perfect sense, though. If every financial business was operated using Jack Bogle's principles, we would not be in the mess we are currently in....

I like the site a lot. They people there seem genuinely interested in making sure users are knowledgeable and learned in the subjects as opposed to "buy this specific singular stock now while....". I've only been following it for a little over a year but have learned a lot and read a few of the books mentioned repeatedly.

There is also a book, Bogleheads guide to investing, that is a good read. But every last bit of info in the book can be gleaned from the website for free.

Good luck. Retiring in these times can be tough for anyone.

One thing to keep in mind is variable annuities are not FDIC insured. However, some fixed annuities are protected. Also, there are some Guaranteed Minimum Income products still available in the 5% range. They wont be available much longer due to the poor outlook.

My father took monthly pension payments when he retired.

My 2 uncles and father-in-law took lump sums when they retired.

My father is still retired, collects his monthly pension, and life has not changed for him, other than he doesn't go to work anymore and gets to drink more beer.

My 2 uncles and father-in-law are now un-retired and starting second careers at age 65 because they are broke. None of the four of them had related jobs. The three of them however all went to different "financial planners" (a paid individual that you are trusting to gamble your money/livlihood/future) Let's face it, the word "investment" is synonomous with the word "gamble" They would have been better off burying their money in a coffee can in the backyard...seriously.

Guess which route I am taking when I retire?

I have been invested in equity markets for quite a few years, and have seen the value go up -- and come back down. Clearly, equities are long-term investments and overall, I'm still ahead of the game.

I would never consider taking that sort of risk with my retirement money, as your uncles and FIL apparently did.

What I am asking about is immediate annuities, which are guaranteed by the seller (who by law must hold adequate cash reserves to cover their obligations) and backed by state government agencies. Your income will be fixed, and in return you give up any chance of future growth. The issuing companies know (statistically) how long you will live, and if you live too long, they might lose (or make less). But there are also enough people dying ahead of their time for the companies to come out ahead....

Of course, the issuing insurance company could someday go bust, and the backing agencies could fail. Similarly, the company you may rely on for your monthly pension checks could fold -- and the government-backed guarantee programs could also fail. There simply is no 100% guarantee anywhere, about anything. There will always be some sort of risk, and the best we can do is try to minimize our exposure to it.


Edit: For better or for worse, today was my last day on the job. :D