Candid Camera

[djs]

I'll be there with beer and popcorn. Annuities are a very very rare fit for anyone - especially seniors.

I agree with the beer and popcorn, but I have to disagree with the very, very rare fit statement.

If you had stayed at one very, I would have been okay. I think they tend to get overused, but there are some situations that they make sense in the financial planning picture. They are after a list of other financial vehicles though such as 401K's, IRA's, etc., which should normally be fully funded long before you mention annuity.

Seniors have other reasons annuities make sense. Again, in limited circumstances.

Of course, I'd go broke if I made a living selling annuities. I don't sell many of them, since I agree, they are a rare fit.

Dan

 

[senior-advisor-indiana]

Look how many seniors are in CD's paying crap right now. You cannot get any money out of a CD without penalties. There is TONS of money sitting in CD's losing money to inflation. Atleast they would have some liquidity and inflation protection with annuities.

 

[Mr. Bill]

Ummmmm....inflation happens regardless of the financial instrument. The only thing annuities do is 1) defer tax and 2) provide an alternative income stream (if annuitized). Oh, and they avoid probate. #1 is questionable - it sounds good on paper but someone is going to have to pay the tax, period. #2 is serious stuff, probably great given today's longevity. #3 all I can tell you is I have met a ton of people who have messed up their estates with screwed up plans, planning, or lack thereof so #3 is probably the most important. IMHO.

 

[senior-advisor-indiana]

Ummmmm....inflation happens regardless of the financial instrument. The only thing annuities do is 1) defer tax and 2) provide an alternative income stream (if annuitized). Oh, and they avoid probate. #1 is questionable - it sounds good on paper but someone is going to have to pay the tax, period. #2 is serious stuff, probably great given today's longevity. #3 all I can tell you is I have met a ton of people who have messed up their estates with screwed up plans, planning, or lack thereof so #3 is probably the most important. IMHO.

NO SH**? I Guess I have to draw you a picture? IF inflation is 3% and you are getting 3% in your CD, then you are losing money to inflation. If inflation is 3% and you are getting 4.8% tax deffered then you are ahead of inflation.
Was I speaking slow enough for you?

 

[Charpress]

Jeez, lighten up guys.

I sell a lot of annuities and they are a good fit for seniors. They must have: reasonable penalty period, death benefit so heir does not get stuck with penalty period, lifetime guaranteed income rider (where appropriate), and a good cap or spread situation so they can really sing when the market is good. I had clients get 18% return last year from the prior year. Probalby zero this year, but that should be considered good compared to many in the market right now.

Anyway... just saw the Dateline show and feel like crawling in a hole right now. Pretty one-sided, I would say.

 

[moonlightandmargaritas]

You cannot get any money out of a CD without penalties.

Who told you this - an insurance company annuity trainer?

It appears as though this is some of the ignorance they are trying to crack down on.

In a CD, you may lose your interest for early withdrawal, but you will not LOSE ANY OF YOUR PRINCIPAL.

In the annuity, you could lose a substantial portion of your PRINCIPAL to surrender charges, in addition to any earnings.

BIG difference.

 

[senior-advisor-indiana]

Its still a penalty(or whatever you want to call it). Usually its only 3-6 months interest. I got this info from banks.

 

[policy doctor]

I've said this for several years now....how come the insurance industry isn't deflecting some of the misconceptions about EIA's, and promoting the viability of annuities? Perhaps they will have to now.

And that comment by the Ala SEC commissioner" I don't think they're suitable for anyone"...ok.....would stock in Bears Stearnes been a better choice....(do i hear screaming)?

We have seen how Dateline skews the interviews to make a story where there really wasn't much of one...wonder how much they spliced to get what they wanted.

Hey what about those CEO's getting 40 million and walking away while trashing stockholder value ?

Or the bank charging credit card customers 18% and paying your cd 3%.

 

[senior-advisor-indiana]

Its ok for a bank for a bank to screw someone with an CD. Oh by the way they sell annuities too. Why don't they go undercover in a bank and see how they are screwing seniors on their CD rate when they can go across the street and get 2% more?

 

[moonlightandmargaritas]

Its ok for a bank for a bank to screw someone with an CD. Oh by the way they sell annuities too. Why don't they go undercover in a bank and see how they are screwing seniors on their CD rate when they can go across the street and get 2% more?

"Emotion conquers logic."

You sound like the guy who said the FDIC was "insolvent".

You must be gettin' this sh*t from an insurance company heavily involved in the fixed annuity market.