Manage episode 322802279 series 2798004
In this episode, The Annuity Man and Michael Finke discuss:
- Delaying your decision to claim
- Insulating your income from volatility
- Inflation is personal
- Consequences of not annuitizing
- If you have a good reason to expect that you’re not going to live as long as an average American, then it makes sense to claim early. Unless, you have a spouse who can continue to receive your benefit.
- Anybody who’s using stocks to compare the present value of future guaranteed income is insane. Insulate a portion of your income stock-market volatility, that’s just the right thing to do both mathematically and psychologically.
- Inflation is personal. It affects each person differently. When you’re planning for retirement, pay attention to what percentage of your expenses are subject to increases in inflation and what are “stable nominal expenses”.
- Stocks will be more volatile, and bonds less volatile. Either way, there is a lot of probability and risks involved.
"Essentially what you're doing when you’re delaying social security is that you are buying more of a government-provided, inflation-protected, annuity." — Micheal Finke
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