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@deepakshenoy Are annuity rates locked in on purchase or are they floating? If so 40 year bond might be a better option! Are there any catches ?

@deepakshenoy This is the whole insurance industry's business model in one tweet. Wrap a mediocre bond in "guaranteed income for life" narrative and Indians will pay anything.

@deepakshenoy Deepak sir, you've been educating investors on this topic for nearly 20 years, yet many people continue to buy annuities. premium.capitalmind.in/2010/01…

@deepakshenoy After purchasing the long-dated GSEC, one must not check the value of other holdings too often; otherwise, there will be painful years where MTM loss will be severe. One must make an informed decision about the entire journey.

@deepakshenoy Overall NPS is decent.

@deepakshenoy why annuities r low? wat etc risk they take with respect to bonds

@deepakshenoy His example for HDFC Life shows 9% to 16% depending on age!

@deepakshenoy and inflation ?

@deepakshenoy @grok explain it in simple words

@deepakshenoy From NPS, forced annuity.. so take it or leave it. At 80, if immediate returns matter to me, happy with 15%, leaving the principal to annuity provider. At 60, will take 40 yr Gsec leaving something for kin IRR might be similar in both

@deepakshenoy Do you do laddering? I was asking my RM and he did not understand that. Do you think using STRIPS would be a good way to create an Income floor (Inflation adjusted at say 6%) for 40 years?

@deepakshenoy The only thing they are doing is helping you prevent acting against yourself For people without discipline They are a lot of people with this issue

@deepakshenoy I have been telling this.. why don’t you start a business on annuity - seriously! Not joking at all!!

@deepakshenoy Spot On...Concurs with my views below the same tweet. NPS is a sleeping tiger, if the compulsion to purchase annuity is removed & annuity payout arising specifically from NPS are made taxfree then our NPS can perhaps become one of the top 10 pension funds of the world.

@deepakshenoy I like ‘ super safe ’

@deepakshenoy The money would be locked in. The issue is bond market liquidity as retail investor. Annuity is an option, but that mean you have enough corpus to play during emergency/unplanned expenses

@deepakshenoy Seriously bad products are being pushed on the old as annuity. This is bad insurance selling redux. Its commission structure will tell full story Wonder why MFs don’t design a simple SWP as annuity

@deepakshenoy Sir koi 100 yrs ka bond hai?

@deepakshenoy I am not expert. Do you suggest nps for long term who have less financial knowledge?

@deepakshenoy Completely agree i like this 40 year bond

@deepakshenoy @deepakshenoy Sir could you point to some 7.56% yield bonds?

@deepakshenoy Annuity and eps gives less returns and eps eats u r principal

@deepakshenoy My gilts portfolio serves the annuity job. Can't put everything in long term due to inflation risk so the return is bit lower. But the real reason to do it is the ability to pledge the bonds for margin and trade against it to generate two income streams from the same asset.

@deepakshenoy Annuities serve very little purpose as an investment vehicle.

@deepakshenoy I think only the without ROP option is worth considering, to reduce longevity risk (exhausting retirement corpus while still alive). If you live much longer than average, it will turn out beneficial.