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Old 12-29-2015, 03:04 PM
 
2,952 posts, read 1,646,333 times
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Find yourself a good Registered Investment Advisor (RIA)> They are by law required to act in your best interest. Ours has been doing this for 30+ years & has access to investment at wholesale. Watch out for the folks that claim they are but also own a brokerage. This is against the law. We currently have a lawyer negogiating a settlement with the lat one.
No one at Merrill Lynch, Morgan Stanley, any brokers office or bank etc is under these guidelines. And these guys sell investments at retail.

We have an annuity. Cash it out after 10 years, more than doubled what we put in it. No penalties nothing. Took our money & invested it in a better fixed annuity. One that the RIA was paid a minimal commission instead of the usual 5-6% the other guys get. And we were given a $50,000 bonus. We will let it grow another 10 to 12 years before turning it on.

I have a whole life/LTC policy. Its guaranteed to pay out $250,000, if I don't utilize the LTC. The LTC is $5,000 per month with 3% inflation rider. Effective now. Will take care of me rest of life in LTC. About $8,000.00 per year, locked in. WE didn't need it but I have no Whole life on me. Husband can't get insurance.

Get insurance while you can. One negative report from a doctor will kill your chance during underwriting investigation.
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Old 12-29-2015, 03:11 PM
 
71,946 posts, read 71,971,035 times
Reputation: 49506
yep , it is amazing how quickly you go from golden with an insurer to not accepted .

i couldn't believe they saw every a1c blood test the last few years .

they surcharged me for a few poor ones even though my sugar levels are back down . . had i taken the ltc two years ago there would have been no surcharges .
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Old 12-29-2015, 06:41 PM
 
Location: Austin
29,557 posts, read 16,523,038 times
Reputation: 8093
Quote:
Originally Posted by mrluckycharms View Post
You talk about "guarantees." First of all remember the "guarantee" is limited to the claims paying ability of the insurance company and there is usually a state limit on the maximum insurance for most SPIA's.
That is a very very low risk. Today, no large insurance companies go bankrupt. So your "risk" is not an issue at all.

Quote:
If you have a million dollars and you put 60% in a Total stock market index fund and 40 % in a total bond fund and withdraw 3-4% (total return) per year guess what? You have created your very own annuity!!!
That's not even close to the same. If you invest a million dollars and the market tanks, you are screwed. with an annuity, you are not.

I would never want 100% of my retirement funds to be at risk.
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Old 12-29-2015, 06:48 PM
 
Location: Austin
29,557 posts, read 16,523,038 times
Reputation: 8093
Quote:
Originally Posted by mrluckycharms View Post
I realize you will promote annuities because obviously you own them. It just surprises me that someone with your financial knowledge would actually think they are appropriate as a retirement option providing income. They are insurance products cleverly disguised as investments for the ill informed and unsophisticated. They are expensive with outrageous commissions.

But hey good luck to you.
They aren't disguised as anything at all. You may not understand annuities but many of us do. Just because you don't understand doesn't make them disguised. There is no disguise and no confusion. Just intelligent choices. The products that are for the ill informed and unsophisticated (like you) include putting all of your investments at risk. That works sometimes, but often is a very poor and ill informed strategy.
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Old 12-29-2015, 10:19 PM
 
Location: LTCShop.com
236 posts, read 113,479 times
Reputation: 151
Quote:
Originally Posted by mrluckycharms View Post
Mathjak let me ask you this. I have thought about LTC insurance for me and my wife (we are in mid 50's. The problems I am seeing is that there is no way to lock in premiuims as one can with a 20 year level term life insurance policy because the insurance companies cannot estimate costs 10-20 years out.

Plus if one starts a policy now, in your 50's, what is to prevent a company from increasing premiums, deductibles, elimination periods to a level that makes these payments unsustainable?

Also, when you look at statistics, the average time spent in a nursing home for a man is 14 months. For a woman ....less than 3 years.

Don't get me wrong, I would love to have a policy in place now ....in our 50's... but what will the premiums be in our 70's???? And what is to prevent the insurance from simply cancelling a policy after 15 years even if they return all paid premiums to date? Which is why it seems that self insuring may be the best option especially given average stays in nursing homes.

Were you aware that 41 states have new regulations regarding premium increases? What state are you a resident of?

Also, did you know that insurance regulations forbid every LTC insurance company from cancelling a long-term care policy? The only way the policy can be cancelled is if you do not pay the premium by the end of the grace period.

Also, federal regulations, require the policy be reinstated up to six months after the premium was due if the policy lapsed because you were physically or cognitively impaired when the grace period expired.
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Old 12-29-2015, 10:42 PM
 
107 posts, read 66,736 times
Reputation: 144
Annuities are garbage. Ask any honest planner and they will tell you the same. Run away...consider a vacation rental property. We did it and love it. Management company takes care of maintenance and we use it when we want to hit the beach. It's rented most of the time.

Last edited by Hawksphins; 12-29-2015 at 10:46 PM.. Reason: Error
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Old 12-30-2015, 02:00 AM
 
71,946 posts, read 71,971,035 times
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Quote:
Originally Posted by LTCShop View Post
Were you aware that 41 states have new regulations regarding premium increases? What state are you a resident of?

Also, did you know that insurance regulations forbid every LTC insurance company from cancelling a long-term care policy? The only way the policy can be cancelled is if you do not pay the premium by the end of the grace period.

Also, federal regulations, require the policy be reinstated up to six months after the premium was due if the policy lapsed because you were physically or cognitively impaired when the grace period expired.
except there are a still increases for all sorts of reasons and i got one this year . there is always going to be some off the record reason for increases .

the link you posted shows genworth , no increases for years . my bank account says otherwise
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Old 12-30-2015, 02:05 AM
 
71,946 posts, read 71,971,035 times
Reputation: 49506
Quote:
Originally Posted by Hawksphins View Post
Annuities are garbage. Ask any honest planner and they will tell you the same. Run away...consider a vacation rental property. We did it and love it. Management company takes care of maintenance and we use it when we want to hit the beach. It's rented most of the time.
really , ask any planner ? well how about going to the right sources and not these ill-informed planners you speak of . . like some of the most esteemed researchers in the field of retirement planning .

researchers like michael kitces , bill bernstein , moshe milevsky , dr wade pfau , blanchett , etc .

most planners know very very little about how to really play the 2nd half of the game , the decumulation stage .

they are only geared up to play on the accumulation side of things .

trust me , if you believe your own bull sh*t on this you will keep yourself from getting a very good education .

we are not talking about the old variable annuity's of old . those were garbage .

we are talking immediate annuity's and deferred income annuity's . all like buying a cd with no other costs .

pensionizing an income source as a base helps keep from selling equity's sooner as well as lets you go more aggressive with more money then you otherwise would . sequence risk is greatly diminished allowing a lot less powder needed to be kept dry for poor sequencing . a higher withdrawal rate is possible as well as more left for heirs not less .


the more conservative the portfolio the bigger the success rate boost from adding an spia .

but even aggressive portfolio's benefit from utilizing them .

they allow higher withdrawal rates then you can safely do on your own .

in reality the safe withdrawal rate for a 60/40 mix would have been not 4% but 6.50% . but the fact poor sequencing in 1929, 1937 and 1966 led to failures the draw had to be reduced to 4% to make it through the worst case scenario's .. just 3 poor time frames have forced a 30% pay cut on withdrawals so they could be considered a safe withdrawal rate based on worst case scenario's . .

annuity's have no sequence risk to allow for and by cutting sequence risk the draw rate on the total portfolio can be increased .


for those without enough resources in retirement a deferred income annuity can make lots of sense .

they are dirt cheap for what they pay out in your 80's .

so instead of using conventional planning recommendations of planning out to 30 years , plan for less years giving you more money per year to live on and let the longevity annuity cover you if you happen to live until your 80's .

they cost very little when used as longevity insurance .

Last edited by mathjak107; 12-30-2015 at 03:16 AM..
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Old 12-30-2015, 08:35 AM
 
Location: LTCShop.com
236 posts, read 113,479 times
Reputation: 151
Quote:
Originally Posted by mathjak107 View Post
except there are a still increases for all sorts of reasons and i got one this year . there is always going to be some off the record reason for increases .

the link you posted shows genworth , no increases for years . my bank account says otherwise


NY has not passed the Rate Stability Regulation.
NY is not one of those 41 states.
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Old 12-30-2015, 08:47 AM
 
Location: Seattle/Dahlonega
547 posts, read 389,331 times
Reputation: 1553
Quote:
Originally Posted by Hawksphins View Post
Annuities are garbage. Ask any honest planner and they will tell you the same. Run away...consider a vacation rental property. We did it and love it. Management company takes care of maintenance and we use it when we want to hit the beach. It's rented most of the time.
I can give a trusted insurance company a lump sum of money and in return I am guaranteed a monthly payment for the rest of my life. period.


Or I can take the same lump sum and buy a home on a coast somewhere in a flood or hurricane susceptible area. I can then make insurance (if I can find any, think Florida) and property tax payments and pay someone to look after the property and hope that it's rented "most of the time".
Let me consider that.
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