No. of Recommendations: 1

You wrote, Monthly payment equals $1313.19.
Total payments $236,374.66
IRR: 2.28%

Without logging in anywhere, just doing a 5 sec Google search I found:

Marcus (Goldman Sachs) 1 yr CD at 2.4% and 5 yr at 2.6%.
I'm not sure what you have to do to open an account to get this.
But it seems like you could do the 5 year rate and then take 5 years to figure out what to do next.

It looks like one key difference has been missed: With the CD, you spend the money and it gets used up and then you have no more. The SPIA or SPDA pays you for life. ...

Are you certain? Really certain?

Because you conveniently omitted the policy terms in Hawkwin's post. Here it is in its entirety:

SPIA quote I just ran:

15 yr Period Certain
<--- Extremely important.
Female age 65
Monthly income, Qualified assets
Payments starting 10/1/2019
No inflation rider
$200,000 initial investment

Monthly payment equals $1313.19.
Total payments $236,374.66
IRR: 2.28%

That very first pre-condition contradicts your assertion. A 15-year certain term does not pay for life. It only guarantees 15 years of payments, if you live that long. After the 15th year, you're out of luck.

- Joel
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.