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I'd pay for a pension fund - which takes my money and, when I retire, uses it pay out fixed income pension every month, based on my life expectancy.

by lgieron 10y ago

kspaans 10y ago
Vanguard has a product similar to what you're looking for: Target Retirement Funds. https://investor.vanguard.com/mutual-funds/target-retirement/#/ https://investor.vanguard.com/mutual-funds/target-retirement... It does everything you want up to retirement age, but after that I believe you're on your own to pay yourself out of the fund. Of course, that assumes you can accurately predict when you'll retire. :) And it depends on what you mean by "fixed income". Do you mean a specific monthly amount agreed on right now (see also: defined benefit plan), or a specific monthly amount that's set once you retire and doesn't change until you die (see also: annuity). The hardest part about all of this, IMO, is predicting how much money you'll need in retirement (a function of both life expectancy and desired quality of life during retirement) and thus predicting how much money you need to put away every month starting now. EDIT: Disclaimer: I own some Vanguard funds (but not Target Retirement ones).
- lgieron 10y ago
  > that I believe you're on your own to pay yourself out of the fund. I am specifically interested in that part :) If I'm withdrawing the money myself from the fund, then I have to take into account the small possibility of me living until I'm 90-100, and thus split money into portions that will last that long. A company could pool a lot of people's money and take advantage of the law of big numbers (i.e. the average lifspan of their clients can be predicted with actuarial math) and portion my money as if I'm going to die when the stats predict me to die (sooner than 90-100 years old), making my monthly withdrawals bigger. That's what state pension funds do in a lot of countries at the moment, incl. my country Poland, but I don't trust the government with my money.
  - kspaans 10y ago
    Ahh OK, so you want something pretty close to an annuity then. I wonder if Wealthfront or Betterment or something would have a plan that helps you invest while you work and then buys an annuity for you when you retire...

I'd pay for a pension fund - which takes my money and, when I retire, uses it pay out fixed income pension every month, based on my life expectancy.

by lgieron 10y ago

I'd pay for a pension fund - which takes my money and, when I retire, uses it pay out fixed income pension every month, based on my life expectancy.

kspaans 10y ago

Vanguard has a product similar to what you're looking for: Target Retirement Funds. https://investor.vanguard.com/mutual-funds/target-retirement/#/ https://investor.vanguard.com/mutual-funds/target-retirement... It does everything you want up to retirement age, but after that I believe you're on your own to pay yourself out of the fund. Of course, that assumes you can accurately predict when you'll retire. :) And it depends on what you mean by "fixed income". Do you mean a specific monthly amount agreed on right now (see also: defined benefit plan), or a specific monthly amount that's set once you retire and doesn't change until you die (see also: annuity). The hardest part about all of this, IMO, is predicting how much money you'll need in retirement (a function of both life expectancy and desired quality of life during retirement) and thus predicting how much money you need to put away every month starting now. EDIT: Disclaimer: I own some Vanguard funds (but not Target Retirement ones).

lgieron 10y ago
> that I believe you're on your own to pay yourself out of the fund. I am specifically interested in that part :) If I'm withdrawing the money myself from the fund, then I have to take into account the small possibility of me living until I'm 90-100, and thus split money into portions that will last that long. A company could pool a lot of people's money and take advantage of the law of big numbers (i.e. the average lifspan of their clients can be predicted with actuarial math) and portion my money as if I'm going to die when the stats predict me to die (sooner than 90-100 years old), making my monthly withdrawals bigger. That's what state pension funds do in a lot of countries at the moment, incl. my country Poland, but I don't trust the government with my money.
- kspaans 10y ago
  Ahh OK, so you want something pretty close to an annuity then. I wonder if Wealthfront or Betterment or something would have a plan that helps you invest while you work and then buys an annuity for you when you retire...