The real cost of that "free" steak dinner (pensions, grandparents)

[mathjak107]

there are but having sat through some of them myself , they follow the guidelines perfectly .

everything they said was true . but you will never see the detailed work ups like i have posted here which give you your exact return year by year once you annuitize and that is where the magic happens for the insurer. i am pretty sure most saw my illustrations of how they get ya .

but if anyone wants to see how they can tell the truth and still get over on you i will be happy to post it again .

[flashlight]

please do.

or link to the older post.

[galaxyhi]

Originally Posted by flashlight

please do.

or link to the older post.

I agree, i never saw your workup mathjak.

My father has 3 annuities i think he said. I know he said he likes annuities. Not sure what kind, hes very private about his affairs.

Im thinking about one, so want to see your workup mathjak.

Im sure the insurance companies make money off you one way or another.

Thanks mathjak
...

[mathjak107]

I will see if I can link it .we are baby sitting until tomorrow so all I have is my little handheld

[mathjak107]

The copy and paste is just not working with the handheld . I can go over this tomorrow when I have my computer

[sanshaloo]

Anyone withdrawing from annuity should comment too. I do have one differed annuity and 4% of it will cover my baseline fixed expenses. Anything over (2+%) will be used for luxury items.

[mathjak107]

Let’s see if this works

[mathjak107]

Okay now that I got it to work in the above post .

This annuity pays you a guaranteed 5.50% growth rate .

If you give them 100k at 55 and wait 10 years it will grow to 180k . It is also linked to a bond index .if the bond index does better you get the higher of the 2 to base an incom on .

The guaranteed account is never your account to take .it can only be used to base an income on . It also has no fees on it .the 100k linked to the bond index has about 3% in fees a year taken so there is no way it will be the higher balance .

At 56 if you annuitized you would get 4% of 105k . If you wait you gain 1/10% a year in draw for every year you wait to annuitize.

By 65 you get 5% of 180k. So out of the 5.50% growth you get the most you can take out is an additional 1/10% of it .

So that is the gotcha .while they give you 5.50% a year as a growth rate they control how much you get in draw . At 65 you old get 5% of the 180k .
You can see by age 85 you have not actually even seen a 4% roi because of how it is doled out. In fact by 90 you have not seen 5.50% .

If you notice you have zero roi until age 76

But you really were compounding at the stated 5.50% a year

[Steve McDonald]

Those who operate annuity funds benefit when their account holders die. I wouldn't want my death to be a benefit to anyone. No life insurance for me, either and no bequests in a will that are known to the heirs. I tell them if I die before age 100, it's all going to charity.

[gentlearts]

The part that spooks me is it ceases to be my money. I have a friend who bought annuities over the years in $100k increments. Some are paying 12%, which ain’t chump change. He and his wife are very comfortable with the monthly income from them. Still, they spook me.