The Complete ***'s Guide to Buying Insurance and Annuities

[DJM]

An interesting thread.

I think the true issue is being missed. The true issue is TRUST.

If you can't establish it or maintain it, move on. Why waste your time?

100% agree with this truth.

 

[Charpress]

Suze Orman in "The Road to Wealth":

Page 510:

Q. My financial advisor is recommending that I buy a variable annuity within my retirement account. What should I do?
A. Get yourself another financial advisor, pronto.

Page 513:

Q. How do I know if an index annuity is right for me?
A. If you do not want to take any risks but still want to play the stock market, a good index annuity may be right for you.

Here's my point: If you stay familiar with what the consumer "experts" are saying, you can probably find something positive to quote about whatever you want to sell.

With Suze it is a no-go for variables, but on indexes she says "I have to admit I like the concept..."

 

[pistol_saf]

A few months ago, I bought Insurance for Dummies by Jack Hungelmann who has the CIC and CPCU designations. The book had a few good points. He explained what each designation means and he suggested if you can, buy from a life insurance agent who has the CLU designation. He also mentions how people are underinsured when it comes to risks of disability.

 

[moonlightandmargaritas]

Page 510:Q. My financial advisor is recommending that I buy a variable annuity within my retirement account. What should I do?
A. Get yourself another financial advisor, pronto.

Is there some reason to put "tax-deferred inside of tax-deferred" that holds up to the scrutiny of what's best for the client?

What is it?

 

[briko3]

In my opinion, not with variable. I can see why a risk averse person would want an indexed annuity in their IRA if they want some market gains without the risk of loss.

 

[dansam59]

I never understood that argument. While you don't gain any extra tax-deferment, is there any harm in putting a tax-deferred vehicle inside an IRA, 401k, etc? You could argue that expenses are higher for most annuities, but what's the point that I'm missing with this overused logic?

 

[xrac]

"The Complete ***'s Guide to Buying Insurance and Annuities" is it the book specifically written for the followers of Susie Ormond and Dave Ramsey?????

 

[moonlightandmargaritas]

You could argue that expenses are higher for most annuities

That's what I'm talking about.

 

[insuranceexec]

I never understood that argument. While you don't gain any extra tax-deferment, is there any harm in putting a tax-deferred vehicle inside an IRA, 401k, etc? You could argue that expenses are higher for most annuities, but what's the point that I'm missing with this overused logic?

Expenses are higher compared to what? Most fixed annuities have no fees.

 

[Charpress]

Tax deferral is certainly one advantage of an annuity. But in my experience, most people don't care that much about that aspect.

What matters is guarantees of principal and guarantees as to growth and as to income.

If you want an IRA that will not die before you do, an annuity is the only thing available in this country that can guarantee lifetime income.