Bogleheads.org

ok, i'm not a tax expert...i thought the alternative minimum tax was supposed to cover that...but this criticism actually is ancillary to my conclusions. if anything it supports them...

"No clue about this since I don't know what a "longevity annuity" is." a longevity annuity is a contract where you buy an annuity that starts say when you are 85 and you receive payments until you die. you may buy it when you are say 50. the calculation for purchase in a trad ira...

OK, I didn't read all because what I did read didn't make any sense. The wealthy don't pay high taxes. I thought Mitt Romney dispelled that myth a long time ago. I tried to dispel that myth with my two popular threads on not having to pay taxes. Search the forum for them. :) ok, i hadn't really add...

i completed a study of using taxable accounts, traditional ira's roth ira's variable annuities and am finishing up on longevity annuities. i am a finance geek, not a tax expert, so i focused on the math side. ultimately i found a few key points rather than the complex web i was expecting. so i want ...

i've had time to look over the bug and complete my model on roth conversions. the bug was if you have a number of years with zero cash flows in a npv(r,values) calculation and you just skip over the cells, the program assumes the years did not occur. you need to put in a zero for each cash flow for ...

"I'm not matching your calculations. $72,028 * 15% = $10,840 1.04^34 = 3.79 So NPV is -$2,847 since the discounting continues in future years it takes over 16 years before the NPV reaches the -$35,000 of paying taxes now. More importantly you are calculating the NPV of a contingent payment (The...

i agree here. but given the tax structure, i am just looking at it from a practical perspective. if you are in the top tax bracket and pay 100k to buy a 72k longevity annuity beginning age 85, you would have to drop down to the 10% tax bracket or below before it would make sense to buy the annuity ...

I wasn't recommending (or recommending that you not buy) a longevity annuity. I was just pointing out the new rulings and proposed regulations facilitating its use in retirement plans. The Roth conversion is a separate issue. The Roth conversion is generally beneficial for many reasons, which I've ...

In response to skanney: under the proposed regulations, if you buy a longevity annuity in your traditional IRA for up to the lesser of $100,000 or 25% of the value of the IRA, it won't count in determining the required distributions: https://www.federalregister.gov/articles/2012/02/03/2012-2340/lon...

How about this link https://www.metlife.com/assets/investments/products/annuities/Longevity-income-guarantee.pdf ? Probably. I can't quite tell if that is a product in itself, or whether it is a rider that can only be obtained in conjunction with a variable annuity... or perhaps only in conjunction...

mathematically speaking, the exact irr can be calculated on any stream of cash flows if you know what they are. so if you know the up front cost and all of the individual montly or years payments, the irr will be an exact figure determined by a precise calculation. in a life annuity, the only uncert...

no life insurance. if i am dead i don't need to support myself any longer...different risk...

i think the credit risk of the insurance company is a serious issue. i do not have much confidence in the state guaranty assn. aig got into trouble thinking they knew more than they did. some insurance companies have jumped into fixed income products with a "synthetic aaa." examples includ...

as i understand it, if i start a deferred annuity for 10 years and roll it over for another 10, when it comes up for the roll again i can annuitize the payments. this replicates a longevity annuity with a 20 year start period that becomes a life annuity at that time. the question is what do i do at ...

rick, if i am not mistaken, inflation protection is offered by american general, principal life and probably metlife as a minimum. i do not believe it is offered by integrity life or lincoln... Yes, on Immediate Lifetime Annuities, but Longevity (deferred) Immediate Annuities.....not so much. you m...

rick,

if i am not mistaken, inflation protection is offered by american general, principal life and probably metlife as a minimum. i do not believe it is offered by integrity life or lincoln...

i think insurance companies can hedge the inflation part with swaps or use TIPs in some fashion. perhaps they buy TIPs, repo the collateral out and take in low quality collateral to pick up some sort of credit spread. there may be alternatives in swaps that run it off balance sheet as well. as a buy...

has anyone heard of this site? http://incomesolutions.com/HomePage.aspx seems they have institutional pricing for annuities which can save about 5% off retail, they show you how to compare quotes and it is run by some professor...that what it looks like...maybe they give the house odds?

does anyone know a good place to get a longevity annuity? vanguard does not sell them but i am looking for a low cost version with cpi protection.

I find that tools that focus just on investment returns are less useful since most of the uncertainty I want to evaluate is in savings and expenses, e.g., what if we move to a smaller house. you make a good point. unless you are asset heavy or plan on saving enough to become asset heavy, managing e...

firecalc does not look adequate on its own. does about as much as possible with historical scenarios, but they are very limited, especially if you are young and have a long period. it does not do any sort of simulation to add to the possible outcomes and does not consider how your liabilities might ...

esplanner looks interesting. they have monte carlo simulations using what looks like tips as a proxy for liabilities. they don't have fat tails and using scenario analysis seems doable but awkward. without the fat tails the monte carlo similation is a it limited, but they use 95% instead of 90% so m...

oh, i didnt see the esplanner one. let me take a look

analyze now only showed scenario analysis capability. they did not even mention fat tails or any sort of simulation. money tree has goal based and cash flow based approaches. from what i saw of these in naviplan, they really don't target your liabilities and show how your assets move in tandem (or n...

i've looked at morningstar and naviplan (which uses morningstar). fidelity was no good. the problem with morningstar is their monte carlo for individuals that i could find does not address fat tails in the distribution of returns or really allow for a scenario analysis. they also target terminal wea...

standard stuff...college planning, spending levels, asset allocation, etc.

i am looking for the best software to perform a financial plan. i was hoping for something that can do scenario analysis as well as monte carlo simulations and had some measure of asset/liability analysis. does anyone know a good program for that?