Quote:
Originally Posted by mrf0151
Yes, Annuities are a high profit product for the company you purchase it from and the company selling it. For example, there is a company here in TV that sells annuities exclusively. They will go unnamed, but I can only say you see lots of people here in The Villages wearing the company's logo clothing and going to the parties they throw. You also see this companies' billboard signs all over TV. Where the heck people do you think this advertising money is coming from??? YOUR POCKETS!!
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Please state your source of information on the "high profits". Can you even explain all the different types of annuities? I just put a large amount of money in MYGAs that pay 5.5% out as long as 7 years, I know for a fact my agent made very little money on them. Where else can you get those interest rates? SPIAs are also not a high profit product.
It is sort of like looking at American Funds who charge 5.75% to get in, and condemning the whole mutual fund industry for it.
Disclaimer - I don't have anything to do with selling annuities, but I have learned a lot, and own several as noted above and a few with income riders. I would suggest reading anything from Wade Pfau who is a professor for unbiased advice.