Longevity Insurance

[Michael G.]

Who bought this?
Is it worth looking into?


Longevity Insurance: What Is It and Do You Need It? (https://clark.com/insurance/longevity-insurance-what-is-it-and-do-you-need-it/?utm_source=Clark.com&utm_campaign=d127e4168e-EMAIL_CAMPAIGN_2022_08_15_07_03&utm_medium=email&utm_term=0_afa92deb83-d127e4168e-71587705)

[tophcfa]

Who bought this?
Is it worth looking into?


Longevity Insurance: What Is It and Do You Need It? (https://clark.com/insurance/longevity-insurance-what-is-it-and-do-you-need-it/?utm_source=Clark.com&utm_campaign=d127e4168e-EMAIL_CAMPAIGN_2022_08_15_07_03&utm_medium=email&utm_term=0_afa92deb83-d127e4168e-71587705)

It’s called an annuity, stops paying when you die.

[Stu from NYC]

There is an old saying about annuities, they are never bought they are sold.

[petsetc]

First my disclaimer - I think annuities are a bad place to put money - they are NOT an investment.

With that said, if you want to know a lot about them, I recommend you listen to the podcasts by Stan The Annuity Man called Fun with Annuities.

And should you want investment help, I recommend you take time to read Paul Merriman’s 3 FREE ebooks.
1. First-Time Investor
2. 101 Investment Decisions
3. Get Smart or Get Screwed (read this first!)

Found at paulmerriman.com

Also on his site are recommended portfolios for using Vanguard, Fidelity, T.Rowe Price or Schwab for DYI'ers. Much good info, ignore the puffery and sales pitches.

[billethkid]

First my disclaimer - I think annuities are a bad place to put money - they are NOT an investment.

With that said, if you want to know a lot about them, I recommend you listen to the podcasts by Stan The Annuity Man called Fun with Annuities.

And should you want investment help, I recommend you take time to read Paul Merriman’s 3 FREE ebooks.
1. First-Time Investor
2. 101 Investment Decisions
3. Get Smart or Get Screwed (read this first!)

Found at paulmerriman.com

Also on his site are recommended portfolios for using Vanguard, Fidelity, T.Rowe Price or Schwab for DYI'ers. Much good info, ignore the puffery and sales pitches.

Are they bad because "...they are NOT an investment..."?

If an annuity is paying the annual earned interest one is expecting, let's say 6.5%....and it preserves their principal....and the client is happy.....why are they labeled bad.....by some folks?

(separate issue :mad:)

[retiredguy123]

Are they bad because "...they are NOT an investment..."?

If an annuity is paying the annual earned interest one is expecting, let's say 6.5%....and it preserves their principal....and the client is happy.....why are they labeled bad.....by some folks?

(separate issue :mad:)
An annuity is a life insurance policy, not an investment. If you can get 6.5 percent with an annuity, and not lose principal, you can get a higher return by investing the money yourself because of the high annuity management fees. Also, any money you make with an annuity is taxed as ordinary income, not at the lower capital gains tax rate. There are also high surrender fees if you want your money back early.

But, for me, there are two things that should tell you that annuities are bad. First, the salesperson makes a huge commission of about 10 percent upfront for selling an annuity. And, second, the salesperson will not allow you to read the annuity contract before you sign it.

[Stu from NYC]

An annuity is a life insurance policy, not an investment. If you can get 6.5 percent with an annuity, and not lose principal, you can get a higher return by investing the money yourself because of the high annuity management fees. Also, any money you make with an annuity is taxed as ordinary income, not at the lower capital gains tax rate. There are also high surrender fees if you want your money back early.

But, for me, there are two things that should tell you that annuities are bad. First, the salesperson makes a huge commission of about 10 percent upfront for selling an annuity. And, second, the salesperson will not allow you to read the annuity contract before you sign it.

Very true

[petsetc]

Are they bad because "...they are NOT an investment..."?

If an annuity is paying the annual earned interest one is expecting, let's say 6.5%....and it preserves their principal....and the client is happy.....why are they labeled bad.....by some folks?

(separate issue :mad:)

Because many/most see them as an investment, and, in fact, a variable annuity is sold as an investment.

As for good or bad, that is in the eyes of the client. What they are is a contract with the issuer, usually an insurance company, to but a stream of income for a period, might be a fixed term or might be for life of one or more people, and the better ones may offer a residual value if all the benefits are not paid out.

Point is, NOT an investment, a contract for a defined cash flow stream.

(at least thats my non-legal understanding)

[golfing eagles]

Who bought this?
Is it worth looking into?


Longevity Insurance: What Is It and Do You Need It? (https://clark.com/insurance/longevity-insurance-what-is-it-and-do-you-need-it/?utm_source=Clark.com&utm_campaign=d127e4168e-EMAIL_CAMPAIGN_2022_08_15_07_03&utm_medium=email&utm_term=0_afa92deb83-d127e4168e-71587705)

I offer something much better------End of the World Insurance. PM me if interested:1rotfl::1rotfl::1rotfl:

[Stu from NYC]

I offer something much better------End of the World Insurance. PM me if interested:1rotfl::1rotfl::1rotfl:

Do you have the assets to pay me if this does happen?

[manaboutown]

My brother is a financial guy. When his sister in law and husband with dementia want into assisted living he took over their finances. She had an annuity paying her 1%!!!. Geez Louise.

[Stu from NYC]

My brother is a financial guy. When his sister in law and husband with dementia want into assisted living he took over their finances. She had an annuity paying her 1%!!!. Geez Louise.

That is why almost all are sold by someone who talks the buyer into doing this.

Nobody wakes up one day and says lets go buy an annuity.

[manaboutown]

That is why almost all are sold by someone who talks the buyer into doing this.

Nobody wakes up one day and says lets go buy an annuity.

Yes and she was a teacher. The annuity was in her IRA. Awful!

[manaboutown]

The guy is 89, diabetic and senile. He was a PhD physicist. Worked for U of Cal. Has PERS. She has teachers's retirement. They have lived high and each weighs close to 300 lbs. They needed to call EMTs when they fell. Huge Colorado house , "cabin" on 6 acres, $900K, Tucson house for winters but NO savings. Huge motorhome, PU Truck with camper, 1966 Scout, 1964 Pontiac, 1,200 lbs. in coins. But not sufficient cash to pay their income taxes. My brother has had his hands full.

[Stu from NYC]

Yes and she was a teacher. The annuity was in her IRA. Awful!

The guy who sold it to her was a thief.

[golfing eagles]

Do you have the assets to pay me if this does happen?

Not really worried about anyone collecting:1rotfl::1rotfl::1rotfl:

[CoachKandSportsguy]

The guy is 89, diabetic and senile. He was a PhD physicist. Worked for U of Cal. Has PERS. She has teachers's retirement. They have lived high and each weighs close to 300 lbs. They needed to call EMTs when they fell. Huge Colorado house , "cabin" on 6 acres, $900K, Tucson house for winters but NO savings. Huge motorhome, PU Truck with camper, 1966 Scout, 1964 Pontiac, 1,200 lbs. in coins. But not sufficient cash to pay their income taxes. My brother has had his hands full.

Well that reads like he took advantage of his limited life span on earth and had all the toys and lifestyle he wanted. Hedonistic with limited empathy / social responsibility genes. must have been envious of the hollywood lifestyle to try to keep up with it

[Stu from NYC]

Not really worried about anyone collecting:1rotfl::1rotfl::1rotfl:

We have some collectors who have never failed to get people to pay up. Nothing will stop them not even the end of the world.:MOJE_whot:

[manaboutown]

Well that reads like he took advantage of his limited life span on earth and had all the toys and lifestyle he wanted. Hedonistic with limited empathy / social responsibility genes. must have been envious of the hollywood lifestyle to try to keep up with it

Actually he was quite generous in many ways. He grew up on a farm in Kansas and could fix just about anything. Never threw anything away. They lived across the street from me for a few years, 1976 - 1983. He owned and kept the 1963 Pontiac Lemans, 1966 Scout and 1978 GMC pickup with a camper on it running all by himself when I knew him. He adopted her son from a prior marriage. He hates California and Hollywood but loves mountain living in Colorado. Although he was a U of CA staff member he worked at Los Alamos Scientific Laboratory (now Los Alamos National Laboratory) in Los Alamos, NM which was operated by the U of CA since the Manhattan Project. Los Alamos National Lab: National Security Science (https://www.lanl.gov). I used to deer hunt with him. He could hunt and fish with the best of them. Very outdoorsy. He was a high earner with a good pension. She had a decent pension. They just spent it all as they went along. As he developed dementia he could no longer manage their finances which were essentially pension income streams.