Parady Financials

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  #16  
Old 04-04-2015, 09:29 AM
Jim 9922 Jim 9922 is offline
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If you are considering buying annuities you should invest some of your own time into research on the basics of annuities. Two good books which outline the basics in simple terms are:
"Annuities For Dummies" by Kerry Pechter and "The Annuity Stanifesto" by Stan Haithcock. Be aware that Haithcock is an annuity salesperson but his short book contains a lot of basic information about the ins and outs of all the different annuities and definitions of all the seemingly complicated terms and restrictions. He also discusses the disadvantages of certain types of annuities, as well as how they can be put to good use in various situations.

If you are going to spend thousands of dollars on something that many times pays in excess of 10% commission to the seller and imposes significant penalties for early terminations and some times has annual maintenance fees, you should be prepared before you sit down face to face with the salesperson whose main goal is to sell you the largest string of annuities possible.
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  #17  
Old 04-05-2015, 02:27 PM
rubicon rubicon is offline
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Two investment topics that will set me running in the opposite direction are annuities and reverse mortgages.

One sentence that will set me running in the opposite direction is when a lawyer on TV says"I would be honored to handle your claim"

No one is going to have a stronger reason to preserve your hard earn savings than you. Investments are complicated and risks uncertain because the financial world is so dynamic . Its the reason that despite years of course work I changed my mind about being a financial planner
  #18  
Old 05-11-2015, 10:18 PM
TomW TomW is offline
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I'm kind of in the anti-annuity camp with the exception that a very few people are better off having their money managed for them for various reasons. I also agree with a previous poster regarding reverse mortgages being advisable for only a few people in very specific circumstances. There are some who are better off paying the high cost of these products in order to secure at least the lower end return on a lifetime income as opposed to going broke entirely.

That said, My third negative feeling pertains to long term care insurance. Every providing company is losing money on this product and I don't see how they cN avoid either premium increases or benefit reductions on current policies. It is illogical to try to predict how you are going to die and under what circumstances. The whole business is tricky but I think one is better off to bet on an annuity that kicks in at a certain age if that person has a decent handle on their health needs versus LTC insurance.

My apologies to the original poster who asked about Parady which I know nothing about. So my answer to the that poster isn't really useful.
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  #19  
Old 05-12-2015, 07:09 AM
drdodge drdodge is offline
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Parady very good Been with them 7 years
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  #20  
Old 05-13-2015, 08:54 AM
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Attended Parady seminar last night. Went on and on about how nice, smart and generous the owner and his pretty wife are but there was no mention of the products they sell or how they are paid or what differentiates them from other companies that specialize in annuities. Doubt if I'll be a client. If Greg is rich at a young age it's due to commissions generated by Villagers.
  #21  
Old 05-13-2015, 10:54 AM
PRpro PRpro is offline
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Annuities are personal preference. As far as companies go, I have heard many good things about TB Financial Group in Fruitland Park. They have an "Annuity University" which you can attend to get further education. Hope this helps.
  #22  
Old 05-13-2015, 03:12 PM
jchase jchase is offline
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Be careful, looked I to it. Don't trust him.
  #23  
Old 05-13-2015, 08:20 PM
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I too am scared of insurance company products. One word University life. If any of you remember they turned out to be a version of a pyramid scheme and lost a lot of people money and they were sold by regular brokers like Merril Lynch.
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  #24  
Old 05-28-2015, 04:54 PM
hulahips hulahips is offline
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If not annuities what do we invest in?
  #25  
Old 06-05-2015, 01:41 PM
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In a sense you already have an annuity with Social Security. What percentage of your expenses does SS cover?

As far as investments go, the general idea is to have a mix of stocks, bonds and cash. Many asset allocations start with about 40% in stocks at age 65, with the percentage in stock gradually reducing over time. If you are more conservative, own less in stocks, more aggressive, own more. The best way to hold stocks, IMHO, is in low cost index mutual funds like those Vanguard sells. ( I also like the ownership structure at Vanguard, where the funds own the company and the investors own the funds.) For bonds, you can also use mutual funds, or you can buy US bonds directly through a program called Treasury Direct, where the money flows in and out of your bank account. Treasury Direct is a U.S. Government program, so there are no extraneous fees. For cash, I mostly use bank CDs and money market funds because they are insured. I keep at least a year worth of expenses in cash because I am quite conservative and so is DH.

If you want more help with investments, and choose to use Vanguard, their phone people are quite helpful. If you need to talk to someone face to face, you might want to try the Fidelity office at LSL. Fidelity is a bit more expensive than Vanguard, and I am not crazy about its ownership structure (The Johnson family owns Fidelity, and Abigail Johnson is the CEO), but they do more face to face than Vanguard. Just don't let people talk you into an asset management service. Ask for an asset allocation using index funds, and invest accordingly. (Again, this is my opinion.)

Cost has been shown to be one of the most important factors in investment returns, and the most sophisticated investors tend to index heavily. If you want verification of this, Warren Buffett has directed that his wife's money, after he dies, should be invested in index funds.
  #26  
Old 06-07-2015, 03:34 PM
tcxr750 tcxr750 is offline
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I would think caution is the word if a variable annuity is the product offered. Upfront commission to the seller and usually high ongoing fees and commissions to the seller. Do some research. Read about the penalties for early withdrawal. Those of us who retired in the nineties might recall American Skandia.
Know what your being sold, because ignorance is the salesman's bliss.
  #27  
Old 06-07-2015, 04:08 PM
GatorFan GatorFan is offline
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Totally disagree. I have Prudential and Voya. Great returns and a great agent who explains everything.
  #28  
Old 06-08-2015, 07:55 AM
Jim 9922 Jim 9922 is offline
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Today the Wall Street Journal published an article (6/8/15 page R4) "A New Warning on Indexed Annuities" which should be read AND UNDERSTOOD by anyone considering an annuity. Besides a rich commission structure, high volume sellers are being offered a broad array of additional high priced incentives including exotic trips, jewelry, etc. The article also does a good job of explaining the pros and cons of the indexed annuity concept and its best uses.
My thought; if you are considering buying an annuity, talk with several sellers to get different points of view and maybe some real beneficial advice on how to invest for your future. Keep in mind these people will probably be making 5% to 10% commission, plus possibly nice perks on your purchase. On a $500,000 annuity that's $25,000 to $50,000, plus. To understand their incentive, ask them what their commission is related to the purchase they are advising you about. It's a fair question, its your money that's giving it to them. It may also give you some idea of what their motivation is behind their recommendations.
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  #29  
Old 06-08-2015, 08:40 AM
Villageswimmer Villageswimmer is offline
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Quote:
Originally Posted by Jim 9922 View Post
Today the Wall Street Journal published an article (6/8/15 page R4) "A New Warning on Indexed Annuities" which should be read AND UNDERSTOOD by anyone considering an annuity. Besides a rich commission structure, high volume sellers are being offered a broad array of additional high priced incentives including exotic trips, jewelry, etc. The article also does a good job of explaining the pros and cons of the indexed annuity concept and its best uses.
My thought; if you are considering buying an annuity, talk with several sellers to get different points of view and maybe some real beneficial advice on how to invest for your future. Keep in mind these people will probably be making 5% to 10% commission, plus possibly nice perks on your purchase. On a $500,000 annuity that's $25,000 to $50,000, plus. To understand their incentive, ask them what their commission is related to the purchase they are advising you about. It's a fair question, its your money that's giving it to them. It may also give you some idea of what their motivation is behind their recommendations.

Sounds like good advice. Most people have no clue what they're paying in fees.
  #30  
Old 06-11-2015, 07:13 AM
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Cedwards38 Cedwards38 is offline
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Quote:
Originally Posted by KayakerNC View Post
As an insurance product, annuities are about risk transfer.
Not an investment product.
This is absolutely correct. If you can live with risk you can probably do better than an annuity by setting up an investment account and include a diverse portfolio. Annuities pay huge commissions to the seller. If, however, you are averse to risk, then they might be the thing for you, but your seller is still going to get paid well, probably better than you.
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