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FYI: (Scroll & Click On Article Title) The Best Annuities
Fixed-income annuities have never paid out so little, and yet had so much appeal. These annuities, which provide a lifetime of guaranteed income, are paying out 12% less, on average, than in 2011, and 25% less than in 2007. And yet sales jumped 17% last year, to their highest level in five years. Regards, Ted https://www.google.com/#q=The+Best+Annuities+
I have given annuities a lot of thought recently in my retirement planning. The only that ones that make half way sense are deferred annuities. And there especially the ones where the recent Treasury rule allows you to exempt up to $125,000 in your IRAs from the RMD rule. Still, I just can't see the financial allure of annuities of any stripe or color. Piece of mind and psychological allure I can understand and peace of mind in old age is a powerful motivator. The bottom line with annuities are they seem more of a return of principal gimmick for x amount of years and then after that you better hope you live a long life (real long) to reap some real benefits. But I am always open to differing opinions.
Edit: If anything, maybe suited for a small, very small portion of your retirement nest egg.
I looked through the charts/graphs in Ted's linked article.
If I were to "bite" into these, I would want/use a version of these that maintains a survivourship / beneficiary for the monies. I am not willing to gamble upon my death date from natural or other causes and let the money revert back to the insurance company.
I do understand their (insurance company) risk. Hell, if I offered such a deal to 10 people I know, I would have enough fees and protections in place so that I knew I would not go broke doing this.
Not that this will happen again........but, there is not a guarantee that one would get their monies back in any form, if there was another "market melt". Lincoln National (one of the insurance companies mentioned in the charts) had to purchase, at the very last hour, a small financial organization in Indiana in order to qualify for TARP monies from the Treasury. The insurance company was on the edge of crashing; as were other insurance companies during this period.
My immediate family has instructions that if and when it is apparent that my brain cells do not function properly and perhaps affecting investing decisions; to move monies into more conservative allocations of mutual funds available at our Fidelity accounts..... like FPURX , FBALX or just to a MM account to allow time for any issues to settle.
Not much with investing changes as we become older, eh? Still crucial decisions to be made.
Hoping your area is not under water with the recent storms.
Comments
Edit: If anything, maybe suited for a small, very small portion of your retirement nest egg.
I looked through the charts/graphs in Ted's linked article.
If I were to "bite" into these, I would want/use a version of these that maintains a survivourship / beneficiary for the monies. I am not willing to gamble upon my death date from natural or other causes and let the money revert back to the insurance company.
I do understand their (insurance company) risk. Hell, if I offered such a deal to 10 people I know, I would have enough fees and protections in place so that I knew I would not go broke doing this.
Not that this will happen again........but, there is not a guarantee that one would get their monies back in any form, if there was another "market melt". Lincoln National (one of the insurance companies mentioned in the charts) had to purchase, at the very last hour, a small financial organization in Indiana in order to qualify for TARP monies from the Treasury. The insurance company was on the edge of crashing; as were other insurance companies during this period.
My immediate family has instructions that if and when it is apparent that my brain cells do not function properly and perhaps affecting investing decisions; to move monies into more conservative allocations of mutual funds available at our Fidelity accounts..... like FPURX , FBALX or just to a MM account to allow time for any issues to settle.
Not much with investing changes as we become older, eh? Still crucial decisions to be made.
Hoping your area is not under water with the recent storms.
Take care,
Catch
I guess you could say that with me: "It's the principal of the thing."