The "Fixed" type of annuity, not variable annuities. Any type that say's "variable" has fees and charges and are expensive. Any "Fixed Type" has no fees or charges. All your money is working from day one and your account is never charged an annual fee.
You will not lose money. You will only make money. With immediate annuities you will get monthly payments for your life or the life of you & your husband or for 10 years or a combination as this.
I have a story to tell. Start here: http://answers.yahoo.com/question/index;_ylt=AhPPOnAqWcZkjOQWCB8bzBXzy6IX?qid=20060915170821AAlTM1c follow all links for full story.
Annuities are misunderstood by everyone including the media & financial advisors. We fully understand annuities now by reading all the details ourselves and then have a professional in annuities answer our questions. I just put $3.9 mil into fixed annuities for my retirement needs.
You should do what I did. Fixed Annuities are for everyone young and old.
Love, RKat
2006-09-16 02:14:45 · 8 answers · asked by Rich Kathryn 1 in Business & Finance ➔ Investing
Read and follow all the links to understand my full story and then answer this question.
We want to again that Joe from http://www.jdsannuities.com for all his work and we look forward to working with you in the future.
2006-09-16 02:19:58 · update #1
Derek "High Opportunity Cost"
If you mean that I have to pay fees and charges for the "High Opportunity" to lose another $1.2 million over 8 years.
I want no part of it.
5.10% for 5 yaers & 5.25% for 10 years with no risk of loss is good enouh for me.
I can earn more than this if Index annuities with no risk of loss.
$10,000 a month with $6,560 tax free from my immediate annuities is just what I need.
2006-09-16 02:50:10 · update #2
Susan - I get 5.25% guaranteed for 10 years my $500,000 will be $834,000 then. The 7% you mention is only for 1 year after that you don't know what you get. If I wanted that type I could have gotten 10.60%. We talked to local agents they did not have all the annuities out there. Joe came up with a great annuity plan and he is a phone call away.
2006-09-16 08:10:40 · update #3
I agree Annuities Solve More Financial Needs for more age groups than any other Solution!
Annuities are The Best SAFE MONEY products! The three best are the following:
1. Immediate Annuities - For Guaranteed Monthly Income for Life, Joint Life or for a Period of Time: Go here to learn more - http://www.jdsannuities.com/immediate_annuities
2. Fixed Index Annuities ------Where your account value does NOT Decline in Value. -----Where the Credited Interest to your account does NOT Decline in Value. -------Where the interest you earn each year is based ONLY on the Upside of a Stock Index (You would accept a Cap on the Upside of say 8% in exchange for not having your account decline in value, wouldn't you???? I know I would!!!!) The Cap varies by company & annuity and is usually guaranteed for 1 year. Other crediting methods are also available. To Learn more Visit: http://www.jdsannuities.com/index_annuities
By the way, the way the insurance company is able to vary the interest you earn which is based on a stock index is by the use of a derivative for the interest part only.
Fixed Deferred Annuities - Where you have a wide selections of multi-year guaranteed rates or for 1 year, 3 years or 5 years. most are 5 to 10 year products. To Learn more and see most of the rates for yourself visit: http://www.jdsannuities.com/annuity_rates
To view the overall website for Annuities visit: http://www.jdsannuities.com
2006-09-19 01:37:29 · answer #1 · answered by Joe the Expert 2 · 0⤊ 0⤋
VERY smart! You can now sleep at night knowing that you will never run out of money. Fixed Annuities are the way to go, and unfortunately people who do not understand them give out information that does nothing but scares people. I wish they would understand what a great retirement tool they are. Not everyone likes to lose money in the stock market or mutual funds, and not everyone wishes to pay a bunch of fees to a planner so they can live high on the hog even if your portfolio is tanking.
IMost agent do not make renewals on annuities, and who cares if they do. At least you are not paying them from your money, the insurance company is! With a broker,the fees come from your money. Good Job Oh and by the `way you cannot lose your money in a Fixed Annuity unless you withdraw all of it the 1st year. Insurance companies don't just screw up. Even if they went bankrupt, your money is safe and usually backed dollar for dollar depending on your state. FDIC is only guaranteed for 100K
Little worried you went through a website instead of a local live agent, and too bad only 5.25% my company offers 7%
2006-09-16 06:32:48 · answer #2 · answered by Susan C 3 · 0⤊ 0⤋
I realize you have thought this out and done quite a bit of homework. It may very well be that your comfort level matches well with annuities. I don't like annuities. I think that with other investments you could do better. It's too bad that your advisor loss so much. Maybe they were too aggressive with your money.
As pointed out in other posts annuites aren't free to you. How long did you lock the money up for? 5 years 10 years. Typically the person that sold the annuity to you is getting 1% for each year you locked it up. It is accurate that all your money goes to work immediatly. It's like a back end loaded mutual fund. Lets say you did 5 years. That's close to $200,000 that you could have paid your insurance person. Ask him how much he/she made on the purchase. Not the fees. Ask them what they received from the insurance company. If they say they did it for free I would laugh. I don't know anyone who does something for free. You can't stay in business doing something for free.
The insurance company is going to take your money and invest it in the stock market and other investments. They know they can make a long-term return on the money that will pay you, them, and the advisor. The insurance company it going to make money on you. They are not in the business for free. Remember your money is gurarenteed but is backed my the insurance company so if they screw up somehow you could lose your money. It's not backed by the government or FDIC or anything like that. Wish you the best.
2006-09-16 05:15:47 · answer #3 · answered by chadspolka.matrix 2 · 0⤊ 0⤋
I think you've had too much Kool Aid.
If you're focussing only on the fees and expenses of variable annuities, then you are missing the boat.
Think about it, do you think the insurance company that is offering you this "free" fixed annuity is doing it because they like you? Of course not. Just because they don't have those expenses that you can see does not mean that they aren't "costing" you something.
Fixed annuities can work, but I find that their rate of return is not so hot. Seems to me fixed annuities have a high opportunity "cost."
2006-09-16 02:31:30 · answer #4 · answered by derek 4 · 0⤊ 0⤋
Anyone that say Fixed Index Annuities suck clearly aren't someone looking out for their clients. Same with IUL. I suggest Fixed Index Annuities and Fixed Index Universal Life to my clients for very simple reasons. Never Lose Money! Tax free income. Cash Growth. Or yeah, Never Lose Money.
Can any of you that pitch variable products promise your clients that they will never lose money?
Can you promise your client that 2002, or 2008 won't happen again?
No. Case Close.
2014-09-12 08:00:06 · answer #5 · answered by Daniel 1 · 0⤊ 0⤋
Best of luck to you. Sounds like you have done really well for yourself. For me, annuities are probably not the answer. Usually, once you die (or you and your spouse), the annuity then becomes property of the insurance company. Personally, if I die sooner than expected, I want my kids to get my dough.
2016-03-27 03:55:25 · answer #6 · answered by Anonymous · 0⤊ 0⤋
... That's not how you should view it. I think you have completely misunderstood the purpose of annuity. It is just a tool to prevent you from outliving your savings.
Annuity is of course good but not overly fantastic but then again as long as it rocks your boat then congratulations to you for having made such a wise decision.
2006-09-16 03:19:22 · answer #7 · answered by floozy_niki 6 · 0⤊ 0⤋
Annuities Suck, stop spamming Yahoo! answers with your advertisement.
Reported
2006-09-16 04:56:04 · answer #8 · answered by Anonymous · 0⤊ 2⤋