5 Replies Latest reply on Apr 26, 2013 10:23 PM by smaneck

    Longevity Annuity

    smaneck
      I've been reading a lot lately on longevity annuities and they seem like a good idea. I wonder why TIAA_CREF doesn't offer them? I don't like regular annuities because it makes the insurance company your heir. A longevity annuity, on the other hand, would cost only a small portion of my portfolio and would serve the same function of insuring I don't run out of money before I die if I live longer than expected. 
        • Re: Longevity Annuity
          kbeaty
          Yes.  TIAA CREF should look into offering this . . . and soon. 
            • Re: Longevity Annuity
              Sharon
              What is a longevity annuity?
                • Re: Longevity Annuity
                  smaneck
                  Sharon said...
                  What is a longevity annuity?
                  A longevity annuity is annuity one buys at say 60 or 65 but doesn't pay out until you are about 85. Because they don't expect you to live that long the payout is really good, say 16K per year on a 50K annuity. I'm thinking it is the best way to make sure you don't run out of money before you die. The IRS is changing the rules so you can buy them with IRA funds without being subject to minimum distribution before the annuity matures. I'm waiting for that to happen before I buy one. I'm also waiting for interest rates to rise because annuities are a bad deal when they are low.