Has AnyonPurchased This Annuity?

Has AnyonPurchased This Annuity?

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  #11  
Old 07-18-2018, 05:18 PM
retiredguy123 retiredguy123 is offline
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If your annuities switched from market based to fixed, then you lost a lot of money. Your friends only lost money if they sold their stocks. The market is way up since the "crash". The best way to invest is to maintain a diversified portfolio.

Last edited by retiredguy123; 07-18-2018 at 05:23 PM.

  #12  
Old 07-18-2018, 06:21 PM
schrdr schrdr is offline
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Your comment is misinformed. My annuities are fixed in a down year and market based in an up year. I have the best of both worlds and never lost a Penney.
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  #13  
Old 07-18-2018, 06:43 PM
retiredguy123 retiredguy123 is offline
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Typically, market based annuities will only pay about 85 percent of market increases, and will warrant that you will not lose money. But, the warranty only applies from the date you made the deposit until the date you cash out. It does not apply on a incremental year to year basis. So, if you purchased the annuity in 2005 and cashed out in 2018, you would only receive 85 percent of the total market gains during those 13 years. You would only benefit from the warranty if you cashed out when the market was lower than when you purchased it, which is not the case from 2005 to 2018. If your annuity is different, I apologize.

Last edited by retiredguy123; 07-18-2018 at 07:08 PM.
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  #14  
Old 07-18-2018, 07:10 PM
thetruth thetruth is offline
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Default The truth about money

Quote:
Originally Posted by retiredguy123 View Post
Typically, market based annuities will only pay about 85 percent of market increases, and will warrant that you will not lose money. But, the warranty only applies from the date you made the deposit until the date you cash out. It does not apply on a cumulative year to year basis. So, if you purchased the annuity in 2005 and cashed out in 2018, you would only receive 85 percent of the total market gains during those 13 years. If your annuity is different, I apologize.
The truth is many do not know the truth. Investors, many, will tell you hey I made xxxx on xxxx stock. The real question is what did you make on all your holdings and what is your current risk.

ANNUITY-few people realize that their quoted return includes returning your own capital.

There is also a life risk in an annuity. I can't, I won't ask my sister about it. She bought an annuity 2-4 years ago.
SHE NOW HAS TERMINAL CANCER.

Like most other things, there are people who want to learn, are willing to study etc and others that prefer to PAY others to do it. Here in the Villages, there is no shortage of places that will CLAIM to manage your money. I think it was buffet who said stocks are the only thing people don't want to buy on sale. I also laugh that Buffet is 86 and yet says he buys companies-STOCKS-for the long term.
  #15  
Old 07-18-2018, 07:26 PM
retiredguy123 retiredguy123 is offline
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This thread is about an ATHENE annuity. I called the company so I could read their annuity contract. They won't let you read it until you buy it. That should be enough information to convince any sensible and sane person not to buy the product. If not, I have no sympathy for you.

Last edited by retiredguy123; 07-19-2018 at 12:04 AM.
  #16  
Old 07-19-2018, 05:27 AM
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l2ridehd l2ridehd is offline
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Quote:
Originally Posted by schrdr View Post
I hear a lot of talk about "Don't Buy Annuities". I agree that not all annuities are the same and everyone is different. But my experience is just the opposite. In 2005 I bought 4 large annuities. For 3 years they grew as did the market. When the market crashed my friends with stocks, Mutual Funds lost 50% of their net worth. My annuities switched automatically from a market based to a fixed rate. In the ensuing years as everyone lost a ton of money, my annuities rose at a steady 7% in the worst economy since The Great Depression. I never lost a penny and made a lot of money with never a worry. Annuities are the reason I am here now living the good life.
Yes, stocks lost 50% in 2008. But have since recovered by 180%. By maintaining a correct asset allocation between stocks and bonds, in 2008 my portfolio went down 24%, not 50%. And over the past 30 years I have had 8.3% average return with significantly lower risk then any annuity. And you only lost money in 2008 if you sold your stocks. If you didn't sell, you lost zero.
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  #17  
Old 07-19-2018, 06:02 AM
petsetc petsetc is online now
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I agree with the many people who point out the real benefit of annuities to the large sales commission the salesperson receives. We do have two annuities that we purchased in December 2004 form a company that was bought out by Athene. My personal experience and opinion is that it was a bad investment and that we still have not totally escaped it since the early termination fees, which go on for 15 years (tapering off). Although the annuity did not loses money in 2008, I would have been much better of with it invested in my mutual funds.

I do have on friend who has annuities who claims they have a guaranteed return of 7% a year, but I have not seen same.

My best advice before investing any serious money to any investment is to go to paulmerriman.com and read his 3 free ebooks.
  #18  
Old 07-19-2018, 06:07 AM
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ColdNoMore ColdNoMore is offline
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Dave Ramsey says...NO!

Quote:
Quincy is on Facebook, and he asks Dave if annuities are good for long-term retirement. Dave gives him the short answer, and then follows up with a more detailed explanation.

ANSWER: No. There’s a rare exception when I might use a variable annuity, which is a mutual fund inside of an annuity, but I don’t use annuities. And I certainly don’t use fixed annuities for anything. They’re crap. That’s basically a CD with huge, huge set of fees on it. No, I’d stay completely away from that. It’s just an insurance agent’s product.
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  #19  
Old 07-19-2018, 07:32 AM
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dewilson58 dewilson58 is offline
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Quote:
Originally Posted by l2ridehd View Post
Yes, stocks lost 50% in 2008. But have since recovered by 180%. By maintaining a correct asset allocation between stocks and bonds, in 2008 my portfolio went down 24%, not 50%. And over the past 30 years I have had 8.3% average return with significantly lower risk then any annuity. And you only lost money in 2008 if you sold your stocks. If you didn't sell, you lost zero.
Agree with post............the key is having cash (not invested, but can use CD's) equal to a couple years of living expenses. This way you don't have to dip into your investments during a down market.
  #20  
Old 07-19-2018, 08:27 AM
valuemkt valuemkt is offline
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At this point it's piling on, But I agree with the majority of posters that annuities are a poor investment for MOST .. As referenced by the one dissenter on this thread, some people (very few) are happy with them.
Regarding this specific company, IF I was considering an annuity (which I'm NOT), I would discard it from consideration. Take a look at Better Business Bureau complaints .. BBB Business Profile | Athene USA | Reviews and Complaints .. reviews on usinsuranceagents web site ★ Athene Annuity Insurance Reviews - ★ Athene Annuity Insurance Company Ratings

Then there's the 2018 Bloomberg article indicating regulators in NY and Texas are investigating Athene .. Insurers Linked to Wall Street Face Scrutiny Over Irate Clients - Bloomberg

The real question, which probably isn't for public consumption, comment or blog scrutiny, is WHY you are considering an annuity .. That is, what problem are you trying to solve.. Are you looking for some sort of consistent income stream that will last for the rest of your life (lives) ? Are you investment savvy and capable of managing either a dividend paying individual stock portfolio or a balanced portfolio of mutual funds ? Are you concerned about being able to manage this as you get on in years ? Want to leave money to your heirs ? These are the elements of developing an estate plan that should lead to some alternatives that will give you steady income, perhaps some growth, and capital preservation / management ..
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