Annuities: A Broker's Best Friend Part II

This video provides a brief overview of how variable and fixed annuities work, and why you should avoid them.

Category:

People & Blogs

Tags:

• annuity
• fixed
• variable
• retirement
• investments
• investing

[CSN13]

@tsmithson1

You are correct on the roll up return - I had this term confused. However, the steep risks with mutual funds are greatly reduced with my 35+ years until retirement. Obviously, nearer to that time I will have much more conservative investments and have my finances in order to fund my own retirement without having the need to pay excessive annuity fees for that many years.

[tsmithson1]

@CSN13 You need to understand that when it comes to "Retirement Income" planning the mutual fund world is taking some steep risks with your life and not talking about the risks of not reaching your income goals. Annuities are not for everyone, but the constant beating is growing tiresome for people who actually do need them and are told not to purchase something that will keep them retired. By the way there are a lot of annuities that offer 7% roll ups on the income values.

[CSN13]

@carljaegger

What company gave you a 7% annual return? Please share your secret!

[CSN13]

@tsmithson1

I believe this video has some valid points. If you have many years to retirement (20+) like I do, annuities are a poor decision. Originally, my broker convinced me to sign up for a variable annuity through my 403b plan. I did and have since then changed to just purchasing mutual funds. The guarantee of x% return is overshadowed by the 2% + fee taken off annually! If you are older, you might have a different situation. But for long term investing , this is not the way to go.

[tsmithson1]

You are a complete idiot that is perpetuating inacurate information.

First, how the hell can you ilustrate at 10%. That is pie in the sky garbage.

Secondly, If Carl and his wife had taken your advise they would be going back to work, reducing their lifestyle, downsizing, etc. Instead they did the right thing, "Protect their LIFE" not just their money.

You don't have a single product that guarantees the investory won't outlive their money.

[carljaegger]

You seem to go around bashing annuities. I put $400,000 into an annuity 10 years ago at the advice of my advisor. The market has been flat, but with the 7% step-up each year I have doubled my income base to $800,000. Now, my wife and I get $48,000/year for life. If I used your advise I would be drawing $48,000 from 400,000 and would run out of money by my early 70s. You are very negative on a product that has brought my wife and I great piece of mind.