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I want to invest in "an individual deferred combination variable and fixed annuity" from the company ING USA. I'm thinking of putting $80,000 in it with no plans to touch it. I want to leave it to my three kids. I'm 59 years old and in good health. I would still be in very good financial shape without the $80,000.

2007-01-23 07:30:43 · 8 answers · asked by Anonymous in Business & Finance Investing

8 answers

My personal experience with annuities is with ones my mom got into. Every I mean every aspect of them are totally slanted against the investor. From the front end load, to the limits on how much you earn despite the market gains, to fine print details like they can delay any payout up to six months at their discretion. With all the cards stacked in their favor the companies selling them darned well should be stable and wealthy. I would suggest looking for the same advantages in other vehicles.

2007-01-23 13:52:10 · answer #1 · answered by gatzap 5 · 0 0

It would be a rather safe investment considering the financial stability of ING but in my opinion (and many experts as well), annuities are not always the best way to go. Sure it guarantees you a certain payment over a certain time, but you pay for the guarantee. Meaning you could possibly earn a much higher rate of return elsewhere. This will certainly give you some peace of mind and allow you to know where the money goes, but with that kind of cash, possibly run it by a financial consultant/planner and see if they have any ideas. Don't get too caught up in tying the money up somewhere though because it can give you "a better return". Crunch the numbers, it's your call! Good luck!

2016-05-24 01:33:18 · answer #2 · answered by Anonymous · 0 0

The people that tell you Annuities are bad for everyone, are dead wrong. They are wonderful tools for people are retired, or planning retirement soon, or for people who wish to leave money to the kids without going through probate. They grow tax deferred, and no one can fight over the money when you die. ING is a reliable co., and your money is protected. The only hole in your plan is the variable part. Those are the bad annuities that everyone lumps Annuities into. Do the Fixed, and the Equity Indexed Annuity with a guarantee. Variables have been known to lose a lot of money and have no guarantees. 100% in stocks and mutual funds.

One more idea for you... At 59, you could put the 80k in the Fixed Annuity and get about $4500 a year in interest. Use that interest to fund a life policy and leave your kids the 80K and about $150 tax free money from a life policy. The interest pays for it every year, and you can still use the 80K later if you need to. Just a thought. Hope that gives you a plan to think about.

2007-01-23 10:41:34 · answer #3 · answered by Susan C 3 · 1 0

Annuities never smart. The exact opposite of smart. Inexcusable. WIth that amount of money you have no need for such an inferior option. Whole Life insurance also wrong. Just making a broker/insurance agent rich for yrs to come. So many better & cheaper options I can't even list them all. Feel free to e-mail @ vegas_iwish@yahoo.com. Terrible option. Do not talk to banks or advisors. Can get info for free from Schwab.com & the like.

2007-01-23 10:23:26 · answer #4 · answered by vegas_iwish 5 · 0 3

If you are going to be investing $80,000 for the future of your 3 kids, you should get an investment advisor and find out if this is really the best place for your money. Start by talking to the advisors at your bank, or pay a little money to talk to a independant financial advisor, but remember he makes money selling you investment products (not necessarily a bad thing)

2007-01-23 08:34:51 · answer #5 · answered by bob shark 7 · 1 0

If you buy an annuity, you give yourself income for the rest of your life, but once you die, that money is the insurance companies, not your kids. Annuties also have front-loads (i.e. commissions to broker), management fees, maintenance fees, etc.
It would be better to buy individual stocks, so when you die, the kids would get the stepped-up basis on the stock. In other words, the cost of the stock will be based on the price at the time of your death, not when you bought the stock. Types of stocks are large cap stocks like GE, IBM, MO, XOM, which pay regular dividends to you.

2007-01-23 14:05:52 · answer #6 · answered by Steve R 6 · 0 1

Extremely safe. ING is one of the biggest multinational financial companies, based in Holland.

2007-01-23 08:22:36 · answer #7 · answered by Anonymous · 1 0

Not very smart.

Top 4 Answerer.

2007-01-23 09:04:57 · answer #8 · answered by Anonymous · 0 4

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