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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MattL
Senior Member
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Don't do an annuity. The only people that make money on them are those selling them.
Debt Elimination
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Wed Apr 19, 2006 8:29 pm |
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willie_52
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Joined: 19 Apr 2006
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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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Rolo
Yo' Daddy
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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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Joined: 19 Apr 2006
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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
Preferred Member
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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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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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