willie_52
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| Retirement Decisions |
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I am brand new to this forum and have found it extremely interesting. Recently I took early retirement, which included a lump sun pension and a 401k. When you have money to be invested folks appear from everywhere looking to help you. I was approached with an interesting concept recently, which was described as a MAP program. Is anyone familiar with this MAP concept? It involves fixed annuities and seems to be extremely safe. I already have a permanent lifetime capitol loss deduction and don't want to bleed anymore. Any comments would be welcome.
Thank You
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Wed Apr 19, 2006 3:24 pm |
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coaster
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Well, don't completely write off annuities...they do have some uses. But I don't know what a MAP program is. Can you provide a link to a website?
~Tim~
Eye Candy : Why Whimsy
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Wed Apr 19, 2006 8:46 pm |
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willie_52
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First, let me explane my position. I am currently 55 and am working in a temp position that ends next year. I started working long before 401k was an option and started saving for early retirement. I don't plan on touching my pension and 401k until I am 591/2. I have talked with many retirement planners and taken advantage of many free lunches and dinners. There are variations of the "MAP Plan" by some of these folks. As I understand how it works is monies are deposited in fixed annuities for specific periods of time. There is a formula based on the amount of money to be placed in each account. According to the plan I would be able to spend down my money for twenty years and at the end of that time I would have the entire amount I started with at 59 1/2. There doesn't appear to be smoke and mirrors involved and the amount I will be able to draw should satisfy my financial needs.
That is how I understand it works, is anyone aware of such a plan. Once again thank you for your consideration.
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Wed Apr 19, 2006 9:35 pm |
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coaster
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quote:
Originally posted by willie_52
...taken advantage of many free lunches and dinners.
Well, I still don't know what a MAP Plan is, but you need to beware of "retirement planners" wining and dining you with food and free seminars. Almost invariably they're selling something and it's something that's tailored to put commissions in their pocket, not necessarily what's right for you. While you can often get useful information at these wingdings, they are only telling you part of the story. So just take it with a grain of salt, and get a broader viewpoint from someone who doesn't have an interest in commission income.
~Tim~
Eye Candy : Why Whimsy
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Wed Apr 19, 2006 10:25 pm |
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Rolo
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MAP sounds like CRAP.
Why? If you cannot explain what it is in a nutshell, then it is a rip-off...hoodwink.
Also, 'safe' isn't safe. It is guaranteed to erode to inflation; you will break even at best.
"Expect me when you see me."
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Thu Apr 20, 2006 2:52 am |
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willie_52
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I appologize for my poor attempt at describing this plan. I tried to put the basic information in as few words as possible and apparently didn' do it justice. The plan is based on the current and future interest rates. I did some investigating and just after 911 the rates were at historic lows. I would have been able to make 3.25%. That isn't what I call earth shattering but I believe it is better then I could have done in the Market. Allow me to tuch on some highlights; the monthly payments have an inflation allowance built in(every year the cash amount increases). If interest rates increase to a healthy percent 7,8 or 9% I could lock it in for a long term. If I were going to spend down my entire savings with a target date of 35 years I could withdraw more money then I can with this plan but in the end I will have nothing or very little. What I like about this plan is that after twenty years I will have an account equal to the amount I started with at 591/2. It isn't magic it is compound interest, math that I can understand. If it wasn't logical I believe I would be running very fast.
I am afraid that the Market is still very unstable and I have lost more then my fair share to. I am currently leaning toward this plan and need to make a decision very soon.
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Thu Apr 20, 2006 3:29 pm |
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bong12187
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So, what is MAP again? Sorry but I am still lost and I don't like being lost if I am to put my money into something, especially my retirement money...
Good job on going to those investment advice luncheons and dinners. Good way to get free meals...
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Fri May 05, 2006 3:46 am |
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coaster
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Yeah -- don't turn down the free meals. Just bring earplugs for the sales pitch over dessert. 
~Tim~
Eye Candy : Why Whimsy
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Fri May 05, 2006 12:48 pm |
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willie_52
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| Retirement, the good life |
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It has taken me quite to long to reply to the above posts but I have been doing the proper type of investagation necessary to make some sort of informed decision. The "MAP" program that I had talked to folks about is also defined as an annuity ladder. I understand that this type of investment does not have to be in annuities but it can be. The plan that I am considering has built in inflation protection. I hope that the use of the term ladder defines this plan better then I have done in the past.
Willie
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Wed May 31, 2006 12:25 pm |
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