One of them told me that all the firms are paying this fee. (ex:$280,000=$28,000)
2007-12-09 22:03:41 · 5 answers · asked by GG 1 in Business & Finance ➔ Investing
Reading the answers that I've received, I find that either my question has been misunderstood/not read completely. I'm referring to investment firms such as (American Equity, Edward Jones, etc;), not a bank. There is a difference. I've owned an annunity, in excess of $200,000, at a reputable firm since retiring in '02'. Not only have I not lost money, I've earned money, while receiving a monthly check that is enough to cover my household expenses. Taxes are only paid on money taken out as it is withdrawn. Capital gains taxes are paid on the appreciated funds. It is not a tax nightmare. My annunity is highly diversified and at a moderate rate.
2007-12-10 03:39:40 · update #1
If you're not 60, the money is tied up anyway. You can only withdraw a certain percentage without paying the penalty. That's a federal stipulation.
2007-12-10 03:43:52 · update #2
No legitimate bank is guaranteeing 10%. If they say they are, it is a scam. For you to get 10% you need to take some risk since the risk fre rate is less than 5% right now. BE CAREFUL!!!!
2007-12-09 23:27:17 · answer #1 · answered by NYC_Since_the_90s 6 · 1⤊ 0⤋
What you're suggesting makes no sense. Anyone paying a "rebate" of 10% on a full investment has got to be ripping you off. It's just doesn't make financial sense.
But a word of warning;
The high fees of variable Annuities make them (in general) a very poor investment. The fee's wipe out any "tax" savings. Plus.... isn't it better to pay eventual taxable gains at the "capital gains rate" rather than the earnings rate on annuities?
2007-12-09 23:48:30 · answer #2 · answered by Common Sense 7 · 1⤊ 0⤋
I think its one of those he said she said stories. I agree with all the other posters, no one is going to give you a guaranteed 10 percent interest rate, no one. well, no one except by using sometype of fraudulant scheme.
It could be they would pay you 10 percent of the annunity per year, ie., 5 percent interest, 5 percent principal., or it may be invested in the stock market where they average 10 percent for the past year (s).
2007-12-10 11:45:09 · answer #3 · answered by Larry B 2 · 0⤊ 0⤋
Annuities are ALL crap. These lousy companies push them so hard because thats what they make the biggest commission on. The returns are bad and your money gets tied up. There are large penalties if you try to take it out.
2007-12-10 01:09:41 · answer #4 · answered by Anonymous · 1⤊ 0⤋
may be but first osf all plz u confirm from the bank ok
2007-12-09 22:06:01 · answer #5 · answered by sameer k 2 · 0⤊ 0⤋