Longevity Insurance

[intercst]

There’s an article in the WSJ on the new “longevity insurance” contract that Congress will allow you to buy inside your IRA/401k. The comments to the article are the best. Example:

{{ I’ve been looking for an investment that will pay me $0 for a minimum of 10 years, preferably 20 years…and will end with a guarantee of total 100% loss.

I’ve finally found it! }}

A Retirement Tax Break That Ends the Fear of Outliving Your 401(k)

The cheapest “longevity insurance” you can “buy” is waiting until age 70 to collect Social Security. Anything an insurance company is selling you will have much higher costs.

intercst

[MarkR]

We started discussing this earlier today on a different thread. I probably should have started a new thread instead…

Reduced penalty for missing RMDs

I don’t think it’s ever a good idea to buy a QLAC. I was just suggesting that perhaps someone could find some good way to use it. It’s hardly ever a good idea to buy any insurance annuity product to begin with. That’s because the net value to the consumers is always the return MINUS the 10 or 15 percent profit to the insurance company. I suppose if someone has already decided to buy longevity insurance outside their tax deferred accounts, they might be advised to use some of the tax-deferred mon…