the 4% concept...

[Stocky]

23 hours ago, The Hammer2021 said:

A shroud has no pockets

That was one of my mother's favourite adages

[The Hammer2021]

38 minutes ago, Stocky said:

That was one of my mother's favourite adages

"Yer  can't  take it wiv  yer"

[Sheryl]

13 minutes ago, The Hammer2021 said:

"Yer  can't  take it wiv  yer"

True.

 

But you also don't want to outlive your savings.....

[The Hammer2021]

Just now, Sheryl said:

True.

 

But you also don't want to outlive your savings.....

Absolutely- it's a conundrum

[Sheryl]

For this reason I opted to put a good portion (but not all) of my savings into a lifetime annuity with a very reputable company (USAA).

 

Not the highest yield approach, but safe, and guaranteed to last my lifetime however long that may be.

[1FinickyOne]

44 minutes ago, The Hammer2021 said:

"Yer  can't  take it wiv  yer"

Has that been proven yet? 

[The Hammer2021]

32 minutes ago, Sheryl said:

For this reason I opted to put a good portion (but not all) of my savings into a lifetime annuity with a very reputable company (USAA).

 

Not the highest yield approach, but safe, and guaranteed to last my lifetime however long that may be.

But as someone rather cleverly  pointed out on this forum- you can live a modest  life then the  day  you die  is the richest day of your life. Everybody  has a different  approach but indeed this concern, this worry is a luxury  most people don't have. Most people don't have enough  spare money to worry about.

[BritManToo]

58 minutes ago, The Hammer2021 said:

Absolutely- it's a conundrum

I can't outlive my pensions.

[G Rex]

My aim is to kark it having 555 Baht in my bank account.

I have no pensions, but have adequate to live comfortably for 20 years.  If it looks like I am going to stay on the Merry Go Round longer than that - I will have to start selling my toys! (or the wife can sell the toyshop - though in 20 years time ... it might be a bit like a Commodore 64 ????)

[The Hammer2021]

19 minutes ago, BritManToo said:

I can't outlive my pensions.

A good point  indeed. But you can spend a monthly allocation in one day or one month. People  with savings tend to have a rule of never touching the capital just living of the interest - clearly  impossible  these days. I prefer spending the capital based on an average life assumption. This balanced with rising property  prices and the fact  the property  can be cashed in

[farmerjo]

What do people think about Thai banks(SCB) business section for returns.

Would asking them to get you a 5%  return be sensible. 

I hate seeing my savings waste away in a fixed deposit.

[bkk6060]

You cannot take it with you, but what about extended family here or abroad?

I guess when we die and you leave them nothing they might hate you, but why would you care in a coffin?

I think it is just the responsible thing to do to leave something to family members, especially kids. 

And, if you have that mindset/plan the chances are your money will not run out before you die. 

 

[LarrySR]

6 hours ago, Sheryl said:

For this reason I opted to put a good portion (but not all) of my savings into a lifetime annuity with a very reputable company (USAA).

 

Not the highest yield approach, but safe, and guaranteed to last my lifetime however long that may be.

Guaranteed annuities disburse about 4% a year and end up keeping the principle when you croak. 

It's a real money maker. That's why they give aggressive (scumbag) annuity sellers huge commissions.

[Sheryl]

6 minutes ago, LarrySR said:

Guaranteed annuities disburse about 4% a year and end up keeping the principle when you croak. 

It's a real money maker. That's why they give aggressive (scumbag) annuity sellers huge commissions.

They principle is drawn down in payments you elect to receive.  If a lifetime annuity, the amount will depend on the beneficiary's age as well as the principle prior to annuitization.

 

It is possible to specify a period certainty such that payments continue for a specified number of years even if you die (I.e. go to a beneficiary). Also possible to make a lifetime annuity for 2 people so that payments end only after both have died -- plus a period certainty as well if desired.

 

Certainly if you end up dying comparatively early, the insurer comes out well ahead on your specific policy (though less so if you included a period certainty).   If  you live unusually long, they lose on your specific policy. And if they are competent they will  overall make a profit on their annuities  as a whole

 

The benefits from my  point of view are (1) no market risk   (2) no chance of outliving my savings and (3)  not having to put in the time and effort needed to monitor/manage investments. Some people enjoy that but I do 

[1FinickyOne]

15 minutes ago, Sheryl said:

They principle is drawn down in payments you elect to receive.  If a lifetime annuity, the amount will depend on the beneficiary's age as well as the principle prior to annuitization.

 

It is possible to specify a period certainty such that payments continue for a specified number of years even if you die (I.e. go to a beneficiary). Also possible to make a lifetime annuity for 2 people so that payments end only after both have died -- plus a period certainty as well if desired.

 

Certainly if you end up dying comparatively early, the insurer comes out well ahead on your specific policy (though less so if you included a period certainty).   If  you live unusually long, they lose on your specific policy. And if they are competent they will  overall make a profit on their annuities  as a whole

 

The benefits from my  point of view are (1) no market risk   (2) no chance of outliving my savings and (3)  not having to put in the time and effort needed to monitor/manage investments. Some people enjoy that but I do 

Another similar approach is a charitable remainder trust. My father did this in NYC - the first benefit was that he avoided taxes on his house - as all assets were sold tax free. Then he was able to be in charge of investing the principle and third, he was able to draw down 8% per annum until his passing... 

 

He lived about 17 years and I think overall the transaction went well for him. I think he lived easily on/under the 8% other than the last couple of years due to medical bills and home care. 

 

This does not address your desire not to be involved w/investments... but I would guess that can be arranged, though I guess you are locked in now and content so it would not be an issue for you.