At Just One Lap, we don’t shy away from financial products. If it exists, odds are you can find it in our archives. We do, however, have an Achilles heel. We don’t like talking about retirement annuities. Personally I have no qualms with them. I wasted the first decade of my earning life getting shafted by credit providers and poor decision-making, so I only started contributing to my RA in my 30s. By that time, 10X existed and I could settle comfortably into that delightfully cheap little nest. Simon wasn’t as lucky.
Retirement annuities are worth talking about. A few product providers are making an effort to contain fees to 1% of assets under management (AUM). While AUM is a bullshit concept, I like that they’re making an effort. 27.5% of my contribution is tax deductible, and can live in a double tax haven in my tax-free savings account. My retirement annuity also keeps the money out of my irrational little paws until I hopefully have some sense.
In this episode, Simon and I start off discussing the merits and limitations of retirement annuities. You can’t really talk about retirement without talking about lifestyle, so our conversation quickly veers into the dangerous realm of personal finances. How much should we be saving? That turns into how we should be living. Odds are you won’t like what we have to say. Perhaps you shouldn’t listen to this episode after all.
This discussion was prompted by a question we received on Facebook. Send your questions to ask@justonelap.com. It’s a judgment-free zone.
Kristia
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