Home     Forum     401k     401k Rollovers
    Register   Login   Members   Search   FAQs     Recent Posts    




The best Annuities?

Reply to topic
Money Talk > Retirement Planning

Author Thread
ithalvey
Member


Cash: $ 4.15

Posts: 19
Joined: 31 Jul 2013
Location: Washington
The best Annuities?  Reply with quote  

Hi, i am 20 years old and want to start putting some money in an annuity. I am wondering which insurance company offers the best ones, i would like a fixed indexed annuity with an optional income rider as well. Any advice would be greatly appreciated.
Post Sun May 31, 2015 11:21 am
 View user's profile Send private message
Wino
Senior Member


Cash: $ 113.80

Posts: 560
Joined: 03 Aug 2012
Location: Dubai
 Reply with quote  

You would be better served to just give your money to the poor. It would do more good, and you'd end up with about the same cash at the end.
Post Sun May 31, 2015 5:41 pm
 View user's profile Send private message
ithalvey
Member


Cash: $ 4.15

Posts: 19
Joined: 31 Jul 2013
Location: Washington
 Reply with quote  

Why do you say that? Guaranteed income for life during retirement sounds pretty nice to me.
Post Sun May 31, 2015 5:45 pm
 View user's profile Send private message
oldguy
Senior Member


Cash: $ 718.00

Posts: 3492
Joined: 21 May 2006
Location: arizona
 Reply with quote  

quote:
Guaranteed income for life during retirement sounds pretty nice to me.


All the life insurance companies have offices full of folks that calculate what-ifs and dream up new names for the lipstick to put on the next pig. Variable, fixed, indexed, equity, return of premium, rider of the month, yada - each year there are new ones that are packaged pretty and sent out to the salesfolks. The names are selected to hide the actual product. It's kinda like 'Fair Tax" - if you called it "Giant 20% Federal Sales Tax" no one would vote for it. They all come with the usual "guaranteed, risk free, money back, sales tactics.

BTW, new salesfolks are directed to start with their relatives - that opens a whole new customer block - and friends/relative are often reluctant to turn down a kid that is starting out, especially a nephew. So if a buddy is pushing annuities, just say 'no'.

In general, they are all high-fee, low return, life insurance products mixed with investments. You'll do way better if you keep your life insurance and your investing separate.
Post Sun May 31, 2015 6:33 pm
 View user's profile Send private message
blixet
Preferred Member


Cash: $ 32.55

Posts: 156
Joined: 28 Apr 2013
Location: Southern California
 Reply with quote  

Sounds nice isn't a financial plan. It is a marketing ploy. If you are being sold based on marketing, go with the shiniest brochure. Otherwise, keep on learning more. Living in a van by the river is also a retirement plan, but the real question isn't where to find a good used car lot. Wink

Information is more valuable sold than used – Fischer Black
Post Sun May 31, 2015 6:51 pm
 View user's profile Send private message
ithalvey
Member


Cash: $ 4.15

Posts: 19
Joined: 31 Jul 2013
Location: Washington
 Reply with quote  

There has to be at least one good annuity out there that is worth getting.
Post Sun May 31, 2015 8:55 pm
 View user's profile Send private message
oldguy
Senior Member


Cash: $ 718.00

Posts: 3492
Joined: 21 May 2006
Location: arizona
 Reply with quote  

quote:
There has to be at least one good annuity out there that is worth getting.


lol - why do you say that?
Post Sun May 31, 2015 11:50 pm
 View user's profile Send private message
Wino
Senior Member


Cash: $ 113.80

Posts: 560
Joined: 03 Aug 2012
Location: Dubai
 Reply with quote  

All annuities are good.

For the guy selling them.

There are reasons to get annuities, but the reasons are few and far between. You'd be better served investing in an index mutual fund (S&P, Total Market, etc.) and using that money as needed.
Post Mon Jun 01, 2015 3:39 am
 View user's profile Send private message
ithalvey
Member


Cash: $ 4.15

Posts: 19
Joined: 31 Jul 2013
Location: Washington
 Reply with quote  

Well i mean lets say i retire at 65, and i use all of my retirement in 20 years, i would be 85. It would be nice to get paid monthly until i die with an annuity. Since i do expect to live a long time. and with the right annuity you would not have to worry about losing money and you could make some better gains if it followed the sp500 index. From my research though it is recommended not to put more than 100 thousand into an annuity. This is probably an investment i would start a little later on in life, but the idea is cool.
Post Mon Jun 01, 2015 3:40 am
 View user's profile Send private message
oldguy
Senior Member


Cash: $ 718.00

Posts: 3492
Joined: 21 May 2006
Location: arizona
 Reply with quote  

quote:
and with the right annuity you would not have to worry about losing money and you could make some better gains if it followed the sp500 index.


Remember, the so-called gains from an annuity comes from YOU - you spent your money to buy an annuity the money is GONE. So it doesn't matter if you get a 6% or an 8% "return", it's your own money coming back.

Plus you get to pay for the life insurance that comes with the annuity, the annual sales fee, and so on. What part of that do you like? The guarantee? Yeah, it's guaranteed, it's guaranteed that you get that low return forever.

It might be best to go to your public library and check out an annuities book, lots of them have been written. Too much of your info is coming from the salespersons, you need to learn the other side of the story.

As for investing when you are 85 - my Dad was writing covered calls when he was 85, he did it for 10 years after that. And he followed the corn futures markets closely. You might be surprised at what you'll be interested in 60 years from now. Very Happy
Post Mon Jun 01, 2015 1:25 pm
 View user's profile Send private message
bayzat
First Time Poster


Cash: $ 0.20

Posts: 1
Joined: 17 May 2016
Location: Dubai, UAE
 Reply with quote  

20 years and already thinking of a retirement plan. Wow, this is quite foresightful. I suggest you also consider taking an insurance plan - the earlier the better as premiums rise with age. Plus, you can also take benefit of no claim bonuses and make sure any condition you develop over the years is covered. I don't have to say the obvious but looking at the current state of the US healthcare debt, costs are surely going to spiral upwards.
Post Tue Jun 07, 2016 10:22 am
 View user's profile Send private message
mathjak107
New Member


Cash: $ 1.20

Posts: 6
Joined: 19 Jul 2016
Location: bayside queens ny
 Reply with quote  

anytime you try to combine multi function products you get a compromised end result .

the best annuity is delaying social security until 70 . you can't buy any annuity for close to what you will pay to delay ss and get what ss gives you .

if you still want more guaranteed income wait until you are of age and add an spia to your own investing .
Post Tue Jul 19, 2016 2:29 pm
 View user's profile Send private message
Jeb G
New Member


Cash: $ 1.30

Posts: 6
Joined: 04 Aug 2016
Location: RI
 Reply with quote  

Invest in a Roth IRA and contribute at as much as your company will match on your 401K.

When I was not much older than you OP, I went to the bank to open a conduit IRA, the con-woman there sold me on an annuity. The high fees have really eaten into it's growth. I put similar amounts into the stock market and those accounts have done much better than the Annuity.

Think of it this way, the life time of payments you'll collect someday will mainly be them handing you back a small portion of your money for 20(?) years. If you happen to outlive the money you put in (they still have to pay you) than MAYBE you have something there. But they're pretty good at this and you'll likely die before you reach that point.
Post Fri Aug 05, 2016 2:35 am
 View user's profile Send private message
Jeb G
New Member


Cash: $ 1.30

Posts: 6
Joined: 04 Aug 2016
Location: RI
 Reply with quote  

I agree with everything oldguy says on this. I did make the mistake of getting an annuity, I regret it every day.

I'm sorry that I can only offer sketchy detail here. Congress was recently investigating the Annuity industry. They want to pass laws requiring Annuity salesmen to have fiduciary responsibility to the client. That is to say they must not sell you something that isn't in your best financial interest. The Annuity industry is fighting it tooth and nail. You can probably google up something about it with " annuity industry Fiduciary"
Post Fri Aug 05, 2016 2:44 am
 View user's profile Send private message
ken-do-nim
Full Member


Cash: $ 15.40

Posts: 76
Joined: 08 Sep 2016
Location: Mansfield, MA
 Reply with quote  

quote:
Originally posted by ithalvey
Why do you say that? Guaranteed income for life during retirement sounds pretty nice to me.


Here's a basic retirement strategy that beats annuities.

Step 1: In your earning years, invest in the stock market.
Step 2: Retire!
Step 3: Sell all of your stocks in your first year of retirement. Because you earned no income (other than perhaps social security), you are in the 10-15% tax bracket, so capital gains tax is ZERO. You get 100% of your earnings, and you didn't even need to use a ROTH IRA to do it.
Step 4: Take your huge pile of cash and invest it into a combination of municipal bonds and high dividend paying stocks & bonds so that you can live off of the dividends into perpetuity.

I guarantee you that you will have a higher income in retirement living off those dividends than you will from money sunk into an annuity.
Post Mon Sep 12, 2016 2:12 pm
 View user's profile Send private message

Reply to topic
Forum Jump:
Jump to:  
  Display posts from previous:      





Money Talk © 2003-2016