Quote:
Originally Posted by Packer Fan
Please provide your proof. I can tell you I have NEVER been sold an annuity and own several. I researched them, quoted them, and bought what made sense for me. I have several types, each for different reasons. I did a lot of research, starting with Wade Pfau's book and going from there. Most academics who do not sell annuities feel that most people should own at least a SPIA in retirement to provide a buffer against market moves.
Mine are part of a comprehensive plan I have for my retirement. Where else can you get a withdrawal rate of 6% with no risk? Where else can you get a 5.5% compound interest rate for 4-7 years but in a MYGA right now? I really think that people need to learn more versus just believing the haters.
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The interest rates on 5-year brokered CDs offered by Fidelity and Vanguard are comparable to the currrent MYGA rates, but brokered CDs have FDIC insurance, and they have lower early withdrawal penalties as compared to the MYGA surrender fees.
I don't know what an "academic" is, but most fee-only financial planners would not recommend annuities as a primary retirement investment.
You may have never been "sold" an annuity, but, I can guarantee you that unscrupulous insurance salespeople are selling them to trusting, uninformed people every day. I have reviewed many people's portfolios who were sold a totally inappropriate variable annuity by someone they trusted with their life savings. In many cases, they didn't even know that they owned an annuity because the salesperson didn't tell them. In some cases, they were advised to transfer their entire IRA balance into an annuity with way higher fees and restrictions than they were paying. It makes no sense to transfer taxed deferred IRA funds into a variable annuity. These people were ripped off by a trusted friend or relative who made a huge commission at their expense. It happens way too often.