I Really Want to Get into the Annuity Market, but Have Reservations...

[anonymous1]

I'm 31. Would much rather have my retirement money in an fia than the market Out of the last 20 years the market has been down approximately 50% of the time Not very good odds don't get me wrong when the market is up people make a lot of money but the down side of loosing 40-50% of your money in one swoop makes me sick With an fia you can get decent returns without the risk of loosing principle It's not right for everyone but I like the idea of having a return on my money more importantly I would rather have the return of my money

 

[slushpuppyking]

Yeah in another forum (non insurance) I'm a member of I started a post about looking into putting money into a FIA and having that as my retirement and they all thought I was crazy.

 

[sman]

I'm 31. Would much rather have my retirement money in an fia than the market Out of the last 20 years the market has been down approximately 50% of the time Not very good odds don't get me wrong when the market is up people make a lot of money but the down side of loosing 40-50% of your money in one swoop makes me sick With an fia you can get decent returns without the risk of loosing principle It's not right for everyone but I like the idea of having a return on my money more importantly I would rather have the return of my money

Which market exactly has been down approximately 50% of the time out of the last 20 years?

 

[anonymous1]

Sp500 7 or 8 years off the top of my head. Dow was down 6 times With the most recent crash in 2007 people are finally above where they were 6 years ago I don't deny when the market is going up like it did most of the 90s with a cumulative 1000% return a lot of money was made to only loose a 3rd between 2000-03 And again to get above 100% to loose 40% in 2007. Caps are not great at the moment in fia but we work with a lot of sagicor fia that the last 10 years 50% roi. With no risk

 

[sman]

Sp500 7 or 8 years off the top of my head. Dow was down 6 times With the most recent crash in 2007 people are finally above where they were 6 years ago I don't deny when the market is going up like it did most of the 90s with a cumulative 1000% return a lot of money was made to only loose a 3rd between 2000-03 And again to get above 100% to loose 40% in 2007. Caps are not great at the moment in fia but we work with a lot of sagicor fia that the last 10 years 50% roi. With no risk

Wrong! S&P was down 4 of the last 20 years. I have no problem with FIA's, but you should really get your facts straight.

 

[anonymous1]

1994 2000 01 02 03 2008 and 11 was flat sorry counted it as down That made 7.

 

[sman]

1994 2000 01 02 03 2008 and 11 was flat sorry counted it as down That made 7.

It was up 26% in 03. 94 was barely down.

 

[anonymous1]

Same in 99 2000 for that matter then
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a loss is still a loss. Like I stated I can't argue their was a lot of money made. Look at this year a new record high If it falls again then what it's a gamble My risk propensity is very conservative I would rather have smaller positive gains and have zero is my hero than loose my money

 

[sman]

I went back and did some calculations, with dividends an investment in the S&P in 1994 would have actually had a small gain.

Not sure what you're saying about 99 and 2000. The market was up considerably in 99 and had a big drop in 2000.

It's obvious you think FIA's are a better option. As I've stated, I have no problem with them. However, I would rarely recommend one to folks in the contribution phase of their retirement planning.

Lastly, a few posts back you bragged about the FIA returning 50% over the last 10 years. The S&P has returned over 110% over the prior 10 years ending 04/30/2013.

 

[anonymous1]

The big market drop was in 2002 two smaller drops in 2000 01 And should have cleared was was the rate of return from dec 2012 going back 10 years As of 4/30 I can believe 110. And no I do not believe fia are perfect fit for accumulation phase but should part of the income distribution planning and should be looked at in the 10-15 years before you plan on taking income and again only about 50% depending on risk propensity And with our current admin who knows what the future holds t bills are nothing markets at all time highs hidden inflation going up just rather be safe with guarantees