Quote:
Originally Posted by Gigi3000
I keep running into road blocks with getting annunity information directly from the insurance company. They keep referring me to an agent but I all ready have a CFP. I'm checking into a Single Premium Immediate Annunity and a MYGA. Has anyone found an insurance company you can buy these from directly?
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If Gigi3000 is miffed that he can't buy an annuity directly from an insurance company, try buying a new Chevy as it rolls off an assembly line. Autos and annuities are products and products generally have a channel of distribution. I don't know what Gigi3000 did for a living, but I assume it required some level of expertise for which he got paid. Folks who have expertise in products are called salesmen and they get paid via something dubbed a commission. Others who have expertise (lawyers, doctors) get paid by something called a fee. CFPs can get paid by either or both.
For those who have trashed annuities on this site, I would mention that annuities offer features that are important to seniors---death benefits, avoidance of probate, and the option to pay tax on gains when they choose.
Commissions are paid to the seller of an annuity. A purchaser should ask about the total costs of an annuity, which include commissions and expenses. It is not an unfair question to ask the seller how much he is being paid for the sale. A purchaser would be prudent to consider investing in an annuity with lower total costs.
Apparently, Gigi3000 has already picked out his products of preference. Those products he selected lock in an interest rate at current levels. Forty years ago interest rates were 16% and it generally takes 40 years for bond yields to completely cycle. So, Gigi3000 should understand that he is locking in a fixed interest rate at the bottom of the cycle.
Finally, it appears that Gigi3000 has a problem either proofreading or spelling the words annuity and the word already. Thus, it would probably behoove Gigi3000 not to buy anything directly and to seek as much advice as he can from either a commissioned or fee-based professional. But, if Gigi3000 is intent on not paying money for someone's expertise, I would be willing to perform his appendectomy in my garage.