DOOM: Annuity rates

[_V_]

Ok, clicked links and here is “Performance” data from them -

1. 27/11/19 to 27/11/20 - 0.66%
2. -5.27%
3. 1.73%

You buy them for the yield generally. If you want to make money on capital appreciation, buy AMD shares.

[AtW]

You buy them for the yield generally. If you want to make money on capital appreciation, buy AMD shares.

And how do they guarantee yield?

Don’t forget HL fees

In any case 3% is rather pathetic when capital is a risk

[_V_]

Fidelity MoneyBuilder Income (Class W) Income Fund Price & Information

Distribution yield : 2.93%
Income paid: Monthly
Type of payment: Interest


Return 27/11/18 to 27/11/19 10.08%
Return 27/11/19 to 27/11/20 5.86%

[_V_]

And how do they guarantee yield?

Don’t forget HL fees

In any case 3% is rather pathetic when capital is a risk

Well, you can have no risk in a bank and get 0.1%

[AtW]

What does class W mean?

These bonds look like a bigger scam than annuities - at least with those they can just repay you back your own money and then keep some, less chance they’ll scam whole capital

[_V_]

What does class W mean?

These bonds look like a bigger scam than annuities - at least with those they can just repay you back your own money and then keep some, less chance they’ll scam whole capital

Sounds like you have it all sorted. AMD to the moon, then sell up and buy an annuity.

[AtW]

Sounds like you have it all sorted. AMD to the moon, then sell up and buy an annuity.

By the time of my retirement in post Brexit Britain getting a rat trap will be deemed as the best retirement option in exchange for 100000000 bottle caps...

[Andy2]

I cannot see why anyone would convert a large sum of money into an annuity rather than buy property and high yield bonds and shares and live off the rent + dividends + interest?

At least that way when you pop off you can leave the wealth to family / Battersea dogs home.

why would a pensioner buy property and deal with the hassle of problem tenants
bonds and shares are all time high and may go pop
bank interest is pitiful 0.5 %
i checked on a website and it seems annuity provides 3.5% return which is not bad

[_V_]

why would a pensioner buy property and deal with the hassle of problem tenants
bonds and shares are all time high and may go pop
bank interest is pitiful 0.5 %
i checked on a website and it seems annuity provides 3.5% return which is not bad

If an annuity works for you, then fine, hand over the hundreds of thousands of £££ and sit back and get 3.5% return until you die.

For me, I would be happy to manage property at 55 years old and bond and stock portfolio and let me family inherit the wealth I've accumulated. I reckon I can get nearer 5% return overall and possibly some capital gains too.

You might buy the annuity and die 2 years later and your family get nothing.

[Whorty]

If an annuity works for you, then fine, hand over the hundreds of thousands of £££ and sit back and get 3.5% return until you die.

For me, I would be happy to manage property at 55 years old and bond and stock portfolio and let me family inherit the wealth I've accumulated. I reckon I can get nearer 5% return overall and possibly some capital gains too.

You might buy the annuity and die 2 years later and your family get nothing.

I assume you're keeping your capital (after tax free lump sum) within your pension pot? So your bonds/stocks are all part of the remaining pension capital?