Moshe Milevsky: Learning from History with Annuities (TAM Classic)
“Fun With Annuities” The Annuity Man Podcast
Release Date: 12/05/2023
“Fun With Annuities” The Annuity Man Podcast
In this episode, The Annuity Man discussed: Not everyone needs to be exposed Bonds and market volatility Looking into lifetime income Questions to ask your advisor Key Takeaways: Financial advisors tend to advise their clients to do 60% equity and 40% bond split or that they always have some exposure, but it doesn’t apply to everybody. People who’ve won the game don’t have to keep playing. Bonds aren’t fool-proof; they go down in value if interest rates go up. If you’ve already accumulated enough to live the life you want and...
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In this episode, The Annuity Man discussed: What does it mean to live off the interest? Living off guaranteed interest When interest rates go down If you can’t live off of the interest Key Takeaways: At the time of this taping, some money markets are 4, some CDs at five, and some MYGAs at five and a half. A lot of you out there have enough funds that whatever interests you can take off of those products is sufficient, and you never have to touch the principal. There's no guaranteed return with index annuities, variable annuities, or...
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info_outlineIn case you missed it, I have decided to circle back to one of my Fun With Annuities episodes that just cannot be missed. This one has annuity gold, and it is definitely a must-listen.
In this episode, The Annuity Man and Moshe Milevsky discuss:
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The problem with annuities
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What’s a tontine?
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How income increases with tontines
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The gap between healthspan and lifespan
Key Takeaways:
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The point of annuities is to generate predictable income even when you can no longer make decisions yourself due to cognitive decline. That’s why agents have to make sure the clients understand and continue to understand what they are buying and what contractual guarantees they have in place.
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A tontine is one of the many strategies people use to finance themselves in retirement in which the longest-living people get the most income while the people who didn’t live a long time get a smaller amount of income.
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Tontines increase the income for all living people involved as time passes because the same income amount is being split within a group that gets smaller as members pass away. The mortality rate becomes a real interest rate - this is most interesting in the current inflationary times.
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Money alone doesn’t solve your problems; just throwing money at a problem won’t make it go away. You need to do something with it to solve your problems, and one of the biggest problems in aging is the gap between health span and lifespan.
"When you have a product that is meant to help people that are eventually going to cognitively decline, there's a higher burden of care there because you got to make sure that they understand what they're buying and they continue to understand what they're buying. " — Moshe Milevsky.
Connect with Moshe Milevsky:
Website: https://moshemilevsky.com/
Twitter: https://twitter.com/RetirementQuant
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Email: [email protected]
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