[Plinker]

Originally Posted by melpetezrinski

Obviously, the answer is NOT simple since you make assumptions and accusations that are incorrect. Also, if a tax deferred product gives you the best ROI for your time horizon, risk profile and tax implications, who cares if it's in an IRA.

Agree. The commission on a MYGA is about 1%. Certainly not “huge”. I have yet to see a MYGA that does not have a higher rate than a CD, often substantially higher. In non-qualified accounts, the interest is deferred until the end of the contract and can be rolled over to a new MYGA, further postponing taxes on the interest. In qualified accounts, it doesn’t matter. I have purchased a number of MYGA products over the years (qualified and non-qualified assets) and would never consider a CD. My non-qualified MYGA allows a 10% withdrawal yearly with no surrender fees.

[Caymus]

Originally Posted by Captainpd

And you want investing advice from a community board full of +60 people?? Really. JMHO but there are people that you pay to manage your money.

I'm curious. What is wrong with +60 people?

[melpetezrinski]

Originally Posted by Plinker

Agree. The commission on a MYGA is about 1%. Certainly not “huge”. I have yet to see a MYGA that does not have a higher rate than a CD, often substantially higher. In non-qualified accounts, the interest is deferred until the end of the contract and can be rolled over to a new MYGA, further postponing taxes on the interest. In qualified accounts, it doesn’t matter. I have purchased a number of MYGA products over the years (qualified and non-qualified assets) and would never consider a CD. My non-qualified MYGA allows a 10% withdrawal yearly with no surrender fees.

A 1% commission can add up very fast. There is no fee AND no commission for the MYGA I purchased. I won't go into details about how I know that's fact but it's one of the very few annuities offered by Equitable (AXA Equitable) that is structured in that manner. However, the other 99% of annuities they offer can carry high fees and 1-2% commission. Annuities are certainly not for everyone and the "devil is in the details".

[jimjamuser]

Originally Posted by Caymus

I'm curious. What is wrong with +60 people?

True and a lot of stock brokers make their money by "churning" you. No one on the forum here is doing that. And 60-plus people have great experience and many are still sharp.......not me, but others.

[jimjamuser]

Originally Posted by MandoMan

According to a couple friends who are big boys in banking and mutual funds, interest rates will be lower by year’s end than now, the inflation rate is going to drop a lot, and if there is a recession, it will be short and small. Paul Krugman is saying the same, and some analysts in the WSJ, and I hear also some major European banks. Maybe they are all just trying to raise our spirits, but it was enough for me to put everything back in stock-based mutual funds.

Paul Krugman is GOLDEN!

[Stu from NYC]

Originally Posted by retiredguy123

The answer is simple. The salesperson delivered a great, but dishonest, sales pitch and made a huge commission.

Annuities are a great financial investment, for the salesman. Reminds me of cousin brucies sales pitches.

[rsibole]

Originally Posted by manaboutown

The Fed rate, that is. Many of us remember the 1970s and 1980s and what happened back then, high inflation, very high interest rates.

How can a portfolio be positioned in preparation?

Any ideas or suggestions?

I-bonds currently pay 6.89%, fully backed by full faith and treasury of US Government. Drawback is that you can only invest $10,000 per person however you can also “gift” I-bonds to another individual.

[Caymus]

Originally Posted by rsibole

I-bonds currently pay 6.89%, fully backed by full faith and treasury of US Government. Drawback is that you can only invest $10,000 per person however you can also “gift” I-bonds to another individual.

You can also overpay federal taxes by $5,000 and get them as payment.

[Plinker]

Originally Posted by melpetezrinski

A 1% commission can add up very fast. There is no fee AND no commission for the MYGA I purchased. I won't go into details about how I know that's fact but it's one of the very few annuities offered by Equitable (AXA Equitable) that is structured in that manner. However, the other 99% of annuities they offer can carry high fees and 1-2% commission. Annuities are certainly not for everyone and the "devil is in the details".

I have several MYGA’s, including one from Equitable.
The agent I use tried to steer me to indexed annuities which have commissions in the 6-10% range. I shut that down real quick. Many agents will not even bring a MYGA up as a consideration in a conversation about annuities. The reason is that the commissions are so low. I realize these can be purchased online but are they not paid to write the contracts?
The last one I purchased had a page in the contract stating he would receive a 0.75% commission on the sale. Nobody works for free. Commissions are already accounted for in the stated rate. Could you expand a bit on the no commission statement?
Thank you!