But, it continues to pay until both of us die…Because all of that 4.8% is interest. You still own the principal. With the SPIA, you own nothing but the payments, part of which is a return of your own money. You're not earning 6%.
Ok, I’m missing something here.
Not to be disrespectful, if I’m 55, buy a 300k SPIA insured by my state paying 6% in monthly payments (in 2025) for the remainder of our (joint) lives. Not concerned about leaving this money to heirs.
Or
4.8% in a government treasury. Waiting for it to mature when I’m 85.
No disrespect, how would that be better?
John
Even if I put 1 million into SPIA for my own little pension, there is and will continue to be millions in our other investments. You can’t take the treasury with you when you die.
I doubt in my case when I’m 85 that I will care much or even notice the difference between my monthly pension payments vs the interested I waited 30 years for in my treasury bill.
I guess, if my plan was to die with the most money, the 30 year treasury would make more sense.
Honestly, I think it really depends on perspective….
John
Statistics: Posted by itnetpro — Mon Jan 06, 2025 4:18 pm — Replies 25 — Views 1008