Quote:
Originally Posted by retiredguy123
Typically, market based annuities will only pay about 85 percent of market increases, and will warrant that you will not lose money. But, the warranty only applies from the date you made the deposit until the date you cash out. It does not apply on a cumulative year to year basis. So, if you purchased the annuity in 2005 and cashed out in 2018, you would only receive 85 percent of the total market gains during those 13 years. If your annuity is different, I apologize.
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The truth is many do not know the truth. Investors, many, will tell you hey I made xxxx on xxxx stock. The real question is what did you make on all your holdings and what is your current risk.
ANNUITY-few people realize that their quoted return includes returning your own capital.
There is also a life risk in an annuity. I can't, I won't ask my sister about it. She bought an annuity 2-4 years ago.
SHE NOW HAS TERMINAL CANCER.
Like most other things, there are people who want to learn, are willing to study etc and others that prefer to PAY others to do it. Here in the Villages, there is no shortage of places that will CLAIM to manage your money. I think it was buffet who said stocks are the only thing people don't want to buy on sale. I also laugh that Buffet is 86 and yet says he buys companies-STOCKS-for the long term.