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this is where you are generalizing about annuity products and are quite wrong .
immediate annuity's have no hidden fees , they couldn't be more simple . they are like buying a cd . the rate is all you need to know , if you like the draw rate that is the deal just like cd's .
the more conservative the investor the bigger the boost in income and success rate an immediate annuity can add to your own investing . with many retirees being gun shy and running such low equity levels they are taking on a big risk of running out of money before they run out of time .
lumping all insurance products together is not correct as while variable annuity's can be as complex as can be with fees every where , immediate annuity's are as simple as a cd
For what it's worth, I think you are correct. Except in extremely limited cases annuities are almost always a bad idea for most people. Complexity, inflexibility, hidden fees conspire against their unwitting buyers. The Dividend Aristrocrats is an excellent way of delivering current income and protecting against inflation.
Your thinking is cogent and clear. I defy anyone to understand what the math guy is talking about with respect to annuities. Investing should be clear, simple, and understandable. Annuities possess none of those characteristics.
by your own words , because you do not understand the concept of integrating immediate annuity's in to an integrated plan you should not be offering advice on the subject .
your advice would be quite wrong since as i explained above it has been proven by study after study that a conservative investor increases income and success rates by the use of these products WITH THEIR OWN INVESTING as well as the products used have no other fees or commissions and there is nothing to figure out as they are bought like a cd by advertised draw rate .
you are parroting what used to be said when insurers raped clients with high fee ,complex variable annuity products . anyone who parrots that in reference to simple low cost spia's (single premium immediate annuity's) is spewing not only mis-information but are quoting other mis-informed sources .
and no , i don't sell financial products and never did . i am retired . i just take an interest in modern retirement planning theory
Last edited by mathjak107; 08-29-2015 at 04:48 AM..
no , i just do a lot of research and make sure i do understand things before commenting .
the problem with most things financial is most folks have little interest . so they parrot other mis-informed folks and adopt their mis-informed or partially informed views as their own. then they go off repeating only a piece of what is true .
until you fully understand things on your own and can argue both sides , pro and con as well , odds are you only know what you think you know , that aint necessarily so.
no , they only provide model portfolio's to follow .
while they can be used in retirement too they are only that .
any income bases you want to provide or pensionizing your own income stream are up to you and your own needs and goals .
those strategy's are going to come from from following the works of the researchers today who look at debunking the myths of old and new fresh looks at idea's and planning that makes the outcomes in and through retirement more consistent , less volatile and more efficient .
Last edited by mathjak107; 08-29-2015 at 09:16 AM..
by your own words , because you do not understand the concept of integrating immediate annuity's in to an integrated plan you should not be offering advice on the subject .
your advice would be quite wrong since as i explained above it has been proven by study after study that a conservative investor increases income and success rates by the use of these products WITH THEIR OWN INVESTING as well as the products used have no other fees or commissions and there is nothing to figure out as they are bought like a cd by advertised draw rate .
you are parroting what used to be said when insurers raped clients with high fee ,complex variable annuity products . anyone who parrots that in reference to simple low cost spia's (single premium immediate annuity's) is spewing not only mis-information but are quoting other mis-informed sources .
and no , i don't sell financial products and never did . i am retired . i just take an interest in modern retirement planning theory
Chip,
I understand why you stopped responding Mr Know-It-All. It's a pointless exercise. I too shall stop after this post.
For the rest of you in this forum, follow his advice at your risk. Annuities are generally a bad idea. It's that simple. I agree with math that some of them aren't as bad as in the past. However, just because they don't suck as much as they used to is not a good argument for buying them now. Ask yourself why this guy is pushing them so hard.
As far as cash flow, owning income properties with decent yields free and clear, in an appreciating market, by retirement age is a far better alternative to fixed income, annuities or dividend stocks. Anyone disagree?
I've become aware of the secondary market in annuities. There's one available now paying 6% compounded for $323K with a $700K lump sum payout at the end of the term period.
It's tempting for an early retiree with no heirs to invest some of the IRA into it, but it's not guaranteed by the state. It would go to the insurance company if you die before the payout date.
As far as cash flow, owning income properties with decent yields free and clear, in an appreciating market, by retirement age is a far better alternative to fixed income, annuities or dividend stocks. Anyone disagree?
income properties first of all are akin to equity investments except they are not passive investing they really are a job . they are in no way shape or form anything like an annuity , they are no different in that regard than the dividend paying stocks
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