Annunities
 

I keep running into road blocks with getting annunity information directly from the insurance company. They keep referring me to an agent but I all ready have a CFP. I'm checking into a Single Premium Immediate Annunity and a MYGA. Has anyone found an insurance company you can buy these from directly?

barf

I don't think you will be able to buy an annuity directly from an insurance company. I hate annuities and would never buy one. But, if I had to buy an annuity, I would buy it from Vanguard Investments. A second choice would be Fidelity Investments. I think both companies sell annuities. Good luck.

Vanguard or Fidelity. Keep costs low

Not sure I would get a immediate annuity…….they just don’t pay. You can not pay an annuity without an agent.

And typically the salesman gets a rather sizable commission.

The first problem with annuities is that you have to buy them from a salesman.

The worst problem with annuities is that when you do the math, you realize you're tying up your money for 10 years to get the same return you could get from a 3-year federally-insured CD. Don't be fooled by the fake "equivalent return" numbers they quote. The number to look at is the internal rate of return. It never even matches the inflation rate.

It's always been a mystery to me that no 100-year-old insurance company has the confidence in their investment team to write a contract that simply guarantees a reasonable fraction of historic stock market returns. They would clean up on the spread, and put the stock brokers out of business! Think of it -- they have the longevity to survive dips in the market (unlike us mere humans), they have the knowledge and experience to successfully play the market -- and they even get to keep what's left in your "account" when you die! So why aren't they willing to write a non-crooked contract that does something beyond just dribbling your own money back to you until you kick the bucket?

I guess the answer is they don't have to. There is an endless supply of marks who won't or can't do the math.

I would LOVE to buy an annuity and quit worrying about how to invest my money. So far, I've never found one that wasn't a scam.

Thank You, Blueblaze, I think you uncovered the secret behind annuities.

As the old saying goes, Annuities are never purchased they are sold.

Yeah, I just came back to say that I don't see the benefit either, unless maybe if I live to 100. If I buy a $100000 immediate annunity, I'd get around $450 a month and if it pays me for 18 years, I'd just break even..sounds ludacris and I would prolly kick off in 3 years, my luck. Then I'd be reeeeaaaallly upset!!!! :)

Have annuities(variable) and get 5% guaranteed and rarely get more than 5%(last year was a good exception) Can not get this rate now. Watch out for the costs. They are more than most of the costs on mutual funds. Costly but safe investment.

Do not know they can be bought direct.

annuities
 

Call a local agent for State Farm. They can help you.

Buy stock in Dominion or Duke Energy and be done with all the hassles. Your heirs will thank you.

Huge commissions with fixed annuity. If you want to use the variable annuity as a means to invest in mutual funds, call Fidelity they will lead you through the way to purchase.

Licensing may be the reason for your experience with the insurance company. Insurance ‘agents’ are licensed by a state’s insurance regulator (in Florida, the Division of Insurance
Agent and Agency Services) to talk with customers in a particular state. The people at the insurance company may not be licensed by the state of Florida to represent the company to customers.

Why aren't you talking to your CFP about this? That's why you're paying him.

You really don’t know what you speak of……

I have one through N Y Life that pays 7.8%, but got that 5 years ago, so I don’t know what they pay now. It was an immediate pay annuity.

I have Lincoln Financial oldest in the nation. Got it from my Financial Planner

Why would anyone buy a variable annuity to purchase mutual funds……..sorry that makes zero since. Variable annuities come with higher cost, you have M&E, administration, and fund manager fees wrapped in the annuity anywhere from 2-3%. Just go buy the MF. Having an annuity just to have funds is NOT what annuities are design for

I like to see that ……I know NY Life and five yrs ago they were not paying 7% to the annuitant

I retired after 20 years training and teaching insurance products. An annuity can ONLY be purchased from an insurance company, Yes, mutual fund companies sell annuities but it is through their insurance division.

An immediate annuity usually makes sense for someone with a longer life expectancy. However, the annuity may not die when you do. There are many options for receiving your distribution - your whole life, for a period certain - 10, 20, years etc., for your life and the life of beneficiary and many other options. Each option affects the amount of the monthly distribution. A life insurance agent can give you the amount of distribution for each option.

I would suggest that you deal with a major insurance company - Met Life, Prudential, AXA (formerly Equitable), etc.

Annuities are not for everyone but we did get one from Wells Fargo Investments. It has a minimum return of 6% and so far has grown very well. At 72 we are to receive a large monthly check. It includes insurance to cover in the event of death etc. So far, we have been quite satisfied with it.

Someone has to pay for those free seminar meals……..and YOU are the someone. Urp!

Annuities
 

If you are a military, I would call USAA. The number is

(800) 531-8722

Hadasa
 

There is a woman's Jewish charity group called Hadassah and has been around 100 plus years or so and they have an ad in their magazine of someone that sponsors and annuity program. They give you the rates in the ad and I would suggest calling them up I believe they're actually in New York Hadassah to get the information on the company. I believe it's four and a half percent if you're 65 and it goes somewhere to 9%, if you sign up at 85. Yes you are tying up your money and it's a charity so that maybe it's a little bit better than others but I've never checked into it further. Has everyone says salesman do make a big commission but you're an adult and you should not put all of your money into anyone basket ever

Annuity salespeople will promise rates and will make all kinds of claims about what the annuity will do for you. But, ask them to provide a copy of the entire annuity contract so you can read the actual contract that you will sign. I have tried many times to get a copy of an annuity contract and they have always refused to provide it and have sometimes gotten nasty about it.

Also, sometimes the promised annuity rate of 6 or 7 percent does not mean that is the rate of return on your investment. It often means that they will pay you that rate, but some of the money will come from the principal that you invested. Of course, if they won't let you read the contract, you don't know how it is calculated.

Annuities are like being mugged while your car is being stolen.

Thank you for stating it so clearly !
I did that as a young woman realized my error and got out !

You just made my day

If you get a "guaranteed " monthly return and the initial investment grows minimally each year and the gross market value is left to your heirs- I am satisfied! (please, no snide or criticizing comments. I am retired, satisfied and don't need the hassle). Just my opinion.

So send your social security check or any pensions you have back. They are annuities. This is just wrong. Annuities have a very important place in retirement planning when used correctly. The only product that can guarantee lifetime income. I have several and am VERY satisfied. I also have several million in the stock market. Totally different goals for each. When another 2008 happens, I will be fine because I have enough guaranteed income to cover my bills. How will you be doing? You can’t earn anything in bonds anymore, so annuities are actually pretty attractive as an alternative. Read or listen to anything by Dr Wade Pfau and you might change your mind.

We have no choice about social security but if we could have opted out 50 years ago would have.

Annuities are very important to the people who sell them. How else can they live the life they have gotten accustomed too.

Those are good stocks along with Carolina Power.

TIAA Creff
 

I worked all my career for higher education. They shared a retirement program under TIAA-Cref. Early on, that was only available to people in higher ed. I put part of my retirement money into safer lower earning annuity and part into riskier mutual funds. Very glad I did as my income is now about what it was while I was working.

TIAA is not available to the public. It is a low cost investment fund with billions under management. It is worth investigating online.

Annuities are just one option among many available for retirement income streams. One shoe size doesn't fit all but it might just fit you if you are looking for guaranteed income, perhaps for life, in retirement. Today's annuities are multi-faceted - unlike a few years back when annuity options were extremely limited. A local annuity broker who specializes in annuity offerings, among other retirement financial vehicles, is Parady Financial. Why not give them a call and learn from the experts what is available, and at what cost, etc etc?

There are places where annuities make sense. If your total portfolio risk can be lowered by annuitizing a portion (and your willing to accept the risk of croaking early) you can dial up your risk in the remainder of your portfolio and improve your returns. This also becomes a much easier premise if you don’t need to count on leaving a legacy. 😊

Essentially, you’re betting the insurance company that you’re going to live longer than they think you will. They take your money, invest it and give it back to you in dribs and drabs (with steep penalties if you want to withdraw more than the contract states).

Annuities are such terrible investments that the minute the government passed a law specifying that financial professionals had to act in their clients best interest, annuity sales fell off a cliff.

In 2016, new rules were passed by the Department of Labor that stated that brokers have to act as fiduciaries. That means they had to put their clients’ best interest ahead of their own.

Needless to say, there’s not a lot of incentive for him to put you in a low-cost index fund.

As soon as the fiduciary rule was passed in 2016, sales of annuities fell 8%. They slid an additional 18% in the first quarter of 2017.

Sales of variable annuities, which are the worst of the worst, crashed 22% in 2016.

:popcorn::popcorn::popcorn:

Annuities are considered to be insurance products and therefore are sold by insurance agents of insurance companies. Fixed annuities are very simple, similar to bank CDs but with deferral of interest taxation.