Q: I plan to retire at 67 with 30 years of FERS postal service. My TSP has $262,000 now. It should be close to $300,000 when I retire. My wife is five years older than I am. We are both in very good health. I suggested buying a joint annuity with my daughter who would be 30 instead of her as the joint recipient because of her age. If I died first she would still receive $700/month from my daughter’s annuity and then the daughter would receive it after my wife died. Would this be a better bet than taking out a joint annuity with my wife?
A: For you daughter, yes — not for your or your wife. By the way, you might think twice about buying an immediate life annuity when interest rates are low.