Talk of The Villages Florida
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Talk of The Villages Florida (https://www.talkofthevillages.com/forums/)
-   Investment Talk (https://www.talkofthevillages.com/forums/investment-talk-158/)
-   -   Annuity - from Variable to Fixed (https://www.talkofthevillages.com/forums/investment-talk-158/annuity-variable-fixed-352722/)

rsmurano 09-06-2024 05:18 AM
Never never buy any kind of annuity for many many reasons. You already know about the high fees, which now you have paid 2x. You get pennie’s on the dollar in returns compared to investing your money in a index fund receiving an index and an average of 8% gains a year (unless you invest in the funds I do that make > 30% and stocks this past year that have performed > 100%) with little fees, just pay taxes on your dividends or long term capital gains.
Or if you have > $1M to invest, you could have been in a money market that has been paying over 5.25% with no fees and no risk.
Now if you get out of your annuities again, you will have to pay the high fees again, plus the cost of getting into them in the 1st place.
I hope the salesman gave you more than dinner!

retiredguy123 09-06-2024 05:36 AM
Quote:
Originally Posted by rsmurano (Post 2367620)
Never never buy any kind of annuity for many many reasons. You already know about the high fees, which now you have paid 2x. You get pennie’s on the dollar in returns compared to investing your money in a index fund receiving an index and an average of 8% gains a year (unless you invest in the funds I do that make > 30% and stocks this past year that have performed > 100%) with little fees, just pay taxes on your dividends or long term capital gains.
Or if you have > $1M to invest, you could have been in a money market that has been paying over 5.25% with no fees and no risk.
Now if you get out of your annuities again, you will have to pay the high fees again, plus the cost of getting into them in the 1st place.
I hope the salesman gave you more than dinner!
I would just add that any money you make in an annuity will be taxed at ordinary income tax rates, with none of the advantages of capital gains discounted tax rates. Surprisingly, some annuity salespeople forget to mention that.

Stu from NYC 09-06-2024 05:41 AM
Quote:
Originally Posted by retiredguy123 (Post 2367626)
I would just add that any money you make in an annuity will be taxed at ordinary income tax rates, with none of the advantages of capital gains discounted tax rates. Surprisingly, some annuity salespeople forget to mention that.
The long lost cousin Brucie would also push annuities relentlessly.

crash 09-06-2024 06:00 AM
Quote:
Originally Posted by phylt (Post 2367405)
We both have owned Variable Annuities for over 10 years. Have been receiving $$$ from them monthly which is...nice. But, knew that fees were very high.

We met with Amerity Financial, Ross Beattie this week. He is located near the Brownwood hotel on Rt 44. 352 633 3777. Our experience with Ross was exceptional. He reviewed our finances, and the Variable Annuities we had in detail with us. Called each of the Annuity companies to obtain all info re status, past fees, transfer info, etc. Very professional and very knowledgeable.

In the end we transferred funds OUT of these Variable Annuities into Fixed Indexed. They have FAR lower fees, more income, better rates of return. All around a better financial move. We are extremely pleased.

Ross was a wonderful expert in this field, zero pressure, and provided unbiased information of possible moves. We highly recommend him for anyone with a Variable Annuity, or considering Annuities in general. Annuities may have a bad reputation, BUT if invested properly in the best instrument they can be a great source of income with solid security.
Did he tell you that he was going to get a fat fee for swapping you out. Any advisor that recommends annuities is not one I want.

Papa_lecki 09-06-2024 06:09 AM
Quote:
Originally Posted by phylt (Post 2367405)
We both have owned Variable Annuities for over 10 years. Have been receiving $$$ from them monthly which is...nice. But, knew that fees were very high.

We met with Amerity Financial, Ross Beattie this week. He is located near the Brownwood hotel on Rt 44. 352 633 3777. Our experience with Ross was exceptional. He reviewed our finances, and the Variable Annuities we had in detail with us. Called each of the Annuity companies to obtain all info re status, past fees, transfer info, etc. Very professional and very knowledgeable.

In the end we transferred funds OUT of these Variable Annuities into Fixed Indexed. They have FAR lower fees, more income, better rates of return. All around a better financial move. We are extremely pleased.

Ross was a wonderful expert in this field, zero pressure, and provided unbiased information of possible moves. We highly recommend him for anyone with a Variable Annuity, or considering Annuities in general. Annuities may have a bad reputation, BUT if invested properly in the best instrument they can be a great source of income with solid security.
You don’t realize this is a “reverse advertisement” for Mr Beattie.
Any financial advisor who is pushing annuities isn’t a financial advisor, he’s an annuity salesman - and won’t be getting calls from most on TOTV.
My dad was talked into 2 annuities, before he let me get involved in his financials. I was upset when I saw that.

wayneman 09-06-2024 06:57 AM
Quote:
Originally Posted by retiredguy123 (Post 2367626)
I would just add that any money you make in an annuity will be taxed at ordinary income tax rates, with none of the advantages of capital gains discounted tax rates. Surprisingly, some annuity salespeople forget to mention that.
Not necessarily true. If the money was invested from an ira, the taxes would be the same at withdrawal time from the ira. Only money put into a annuity from a regular brokerage acct could have lower taxes.

retiredguy123 09-06-2024 07:06 AM
Quote:
Originally Posted by wayneman (Post 2367661)
Not necessarily true. If the money was invested from an ira, the taxes would be the same at withdrawal time from the ira. Only money put into a annuity from a regular brokerage acct could have lower taxes.
I don't understand what you are saying. Money that you "earn" in either an IRA or an annuity is taxed as ordinary income. It is not considered a capital gain. I am currently withdrawing RMD funds from my IRA, and it is taxed as ordinary income. If you buy an annuity, you are buying a life insurance policy, so you don't actually own any stocks or bonds in your name, and you cannot accumulate any capital gains, only ordinary income.

Priebehouse 09-06-2024 07:15 AM
???
 
With all due respect, if you think of this forum as a teaching platform you need to go back to first grade. At least you will find a wide variety of opinions.

guitarguy 09-06-2024 07:31 AM
No one buys an annuity; they are sold an annuity.

CybrSage 09-06-2024 08:10 AM
Quote:
Originally Posted by guitarguy (Post 2367698)
No one buys an annuity; they are sold an annuity.
Please explain how there something can be sold if there is no buyer? How can selling happen without buying?
If no one buys the item, how can the item be sold?

CybrSage 09-06-2024 08:14 AM
I am curious, will the view on annuities change if a certain candidate gets in office and is able to enact a tax on money not yet earned, aka unrealized capital gains?

No politics please, just asking how such a thing may or may not alter views on annuities.

Also, if one is seeking safety, but not stupid levels like a savings account whose interest is far below inflation, what is recommended? For a risk adverse person. Asking for a friend (and in this case, I really am. :) )

ElDiabloJoe 09-06-2024 08:20 AM
Quote:
Originally Posted by CybrSage (Post 2367717)
Please explain how there something can be sold if there is no buyer? How can selling happen without buying?
If no one buys the item, how can the item be sold?
guitarguy is not saying there isn't a transaction that occurs. He is saying that no one goes looking to buy into an annuity because most people know they are bad moves. He is saying that people are sold annuities by a salesperson, someone persuasive.

Kinda like extended auto warranties. No one goes looking to buy one, but instead is solicited and persuaded by a salesperson.

No one buys annuities, people are sold annuities. It's the perspective of the transaction he is talking about.

Marine1974 09-06-2024 08:25 AM
Fixed annuities
 
Quote:
Originally Posted by phylt (Post 2367405)
We both have owned Variable Annuities for over 10 years. Have been receiving $$$ from them monthly which is...nice. But, knew that fees were very high.

We met with Amerity Financial, Ross Beattie this week. He is located near the Brownwood hotel on Rt 44. 352 633 3777. Our experience with Ross was exceptional. He reviewed our finances, and the Variable Annuities we had in detail with us. Called each of the Annuity companies to obtain all info re status, past fees, transfer info, etc. Very professional and very knowledgeable.

In the end we transferred funds OUT of these Variable Annuities into Fixed Indexed. They have FAR lower fees, more income, better rates of return. All around a better financial move. We are extremely pleased.

Ross was a wonderful expert in this field, zero pressure, and provided unbiased information of possible moves. We highly recommend him for anyone with a Variable Annuity, or considering Annuities in general. Annuities may have a bad reputation, BUT if invested properly in the best instrument they can be a great source of income with solid security.
I would not take any advise from any one on this thread .
There are many types of annuities where the insurance company pays the fee not the owner .
Only a portion of the monthly withdrawals are subject to taxes .
You never lose money if the stock market goes down . Your investment constantly grows .
It’s a great source of income with less taxes and your principal is protected from any downside.

retiredguy123 09-06-2024 08:28 AM
Quote:
Originally Posted by CybrSage (Post 2367717)
Please explain how there something can be sold if there is no buyer? How can selling happen without buying?
If no one buys the item, how can the item be sold?
Most annuities are a bad deal. So, it requires a slick and deceptive salesperson to convince an uninformed buyer to buy the product. In fact, the salesperson will not even allow the customer to read the annuity contract before buying it. So, you buy it first, pay the money, and then they send you a 100-plus page contract with 30 days to cancel it and ask for your money back. Many people who buy annuities think they are investing their money in stocks and bonds. Instead, they don't even realize that they are buying a life insurance policy with virtually no death benefit. The only thing they have is a contract between them and an insurance company.

RoboVil 09-06-2024 08:42 AM
Just to add my 2 cents - QQQI and JEPQ are two non-qualified dividend paying ETFs which return 10 to 14% with some slight risk as the base value will vary with the Nasdaq (but the dividend continues regardless) which will generally go up. Non-qualified means you are taxed at regular rate not dividend rate. But even in a taxable account you still do not have other deductions taken out as you would in regular income. I prefer putting some of my money in these instead of 5% savings accounts.


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