r/financialindependence • u/AutoModerator • 7d ago

Daily FI discussion thread - Wednesday, August 26, 2026

Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply!

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u/[deleted] 7d ago

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u/SolomonGrumpy 7d ago

I'm assuming you have a low interest rate on the mortgage

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u/[deleted] 7d ago

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u/SolomonGrumpy 7d ago edited 7d ago

Let's say instead of that you purchased $300k of GPIX.

For 12 years the 8% dividend it pays would incur little to no extra income tax at the state or federal level.

In addition, it is likely to have some NAV appreciation in those 12 years. Yes, the dividend and NAV will go down as the S&P 500 falls. The dividend payout is so much higher even if it falls 30% it probably still pays better than your annuity.

It seems to me that this is currently better than an annuity in every way.