Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
#31
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#32
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If you don’t want to annuitize your money for good go with a 5 or 7 year fixed annuity at 6.15% and get your entire investment back or reinvest at the end of the term.
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#33
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[QUOTE=dewilson58;2270060]Not sure who told you a 13 year breakeven.
Simple Example: You could ladder out CD's and get over 5%. If you are getting 5% on your $265k and you take out $1675 per month......you will have over $75,000 left after 13 years. So you are saying CD's will hold at 5% or better over 13 years? Really? |
#34
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Why do this?
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#35
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An advisor that truly has your best interest at heart will never recommend an annuity. |
#36
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No layman could possibly understand these contracts. I spent many years litigating and there is NOTHING favorable to you in the language. Find a better product. If you must, go to Vanguard. Shareholders own the company. Lowest cost products .
Had a Harvard lawyer review and they laughed how absurd the contract language was after reading a few pages. Caveat Emptor. Or you can trust a salesman Quote:
Last edited by Babubhat; 11-01-2023 at 08:09 AM. |
#37
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[QUOTE=mrf0151;2270219]
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#38
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Don’t
Once you hand over the money it is no longer yours. It belongs to the salesman if you ever need a large amount of money due to misfortune you cannot take it out without huge penalty. I have one and it was a big mistake. Any profit on your money in the investment they put it in does not get put back in your account. It’s a bad deal.
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#39
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When an investment person mentions an annuity, I run for the door !
Last edited by MrFlorida; 11-01-2023 at 08:10 AM. Reason: spelling |
#40
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Sure thing is most annuities have large fees attached. CD's to me are a bit old fasioned but hey, 5% is 5% at today's rates. For me, I stick with a balanced stock fund with a reputable mutual fund company and enjoy the good market days and growl about the bad market days. I have to admit, I've been doing a fair amount of growling the past couple of years. |
#41
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We’ve spoken to Skip West at West Financial and the annuity he talked to us about (we have not committed yet), is the rate you receive is a little over 7%, he told us he receives a 7% commission from the annuity company. If you commit, then you cannot take ANY money out for a determined amount of time (he said it is graduated the the first 12 or 13 years). The annuity company receives usually in the range of 2-3% from the investment they make on your money based on the market. Their side can go up or down but will not change what you receive (unless you’ve withdrawn some and early withdrawal is a huge fee). The other nice thing was that the principal amount never goes down! So that money will be 100% left to your family when you pass. My concern is if my husband would pass before me (he is a good bit older that I), is that if it is within the timeframe where none of it can be withdrawn without penalty, what do I do for additional income that would be gone from his now receiving SS. But I did feel like Skip was very honest with us. He told us pros and cons.
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#42
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If you want to know too much about annuities, listen to Stan The Annuity Man® | Brutally Honest Facts About Annuities podcasts.
Podcast - Have Fun With Annuities(R) | The Annuity Man My additional investment advice - 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. Last recommendation is FIRECalc: A different kind of retirement calculator , a Monte Carlo simulation of your future. FWIW |
#43
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Just some thoughts
1 - Do you not trust your advisor? If this individual is confusing you or giving you a high pressure sales pitch that you do not like, find another person or tell your advisor you are not happy.
2 - Why are you asking total strangers for financial advice? Would you go up to random people walking around and ask them what you should do with your money? Talk of The Villages participation does not guarantee knowledge and, as can be seen in the variety of opinions, can be very confusing. Quote:
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#44
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You can buy, With $100,000 a 6% 11 month CD right now…
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#45
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If the annuity comes with a fixed payout for life then I don't care about fees. If the company's investments work out and they make money then good for them but if they don't then their income drops while mine stays the same. All I care is that I am getting a good fixed payout for the purchase price. 5% is good but 5% is new. While I don't have a crystal ball I do have a good short-term memory and we haven't seen 5% for quite a while. Perhaps rates will go higher or maybe they will drop again in the next 20 years. Back to that crystal ball. If that amount is put into a CD Ladder at 5% then it should last 20-22 years at the $1,625/month draw rate as long as the 5% holds for the entire time. At the end of the 22 years I would have $0. If the amount is put into the annuity and I live to 100 then the amount would last 30 years. At the end of the 30 years I would have $0. Big consideration: If there is a growth period between the time the annuity is purchased and when it begins to pay then that would make a difference. That 30 years of annuity payout might then be from age 80 to 110. The money in the CD would pay out immediately or it would grow and extend the time it was available. I don't want to bet on when I will die but I'm pretty comfortable with the idea that I won't live to 110. I'm not in a hurry to purchase an annuity but I am thinking about it. Sure, my money might grow if I kept it in the market and I would have something to leave to my heirs but there is always the chance that it would not. Having some left over for heirs is nice but having a guaranteed source of income is nice too.
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Why do people insist on making claims without looking them up first, do they really think no one will check? Proof by emphatic assertion rarely works. Confirmation bias is real; I can find any number of articles that say so. Victor, NY Randallstown, MD Yakima, WA Stevensville, MD Village of Hillsborough Last edited by Bill14564; 11-01-2023 at 09:04 AM. |
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