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 Posted: Sun Dec 07, 2008 12:33 pm Post subject: |
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| Quote: | | I agree with Gary, if I wanted to invest in the stock market I would trade stocks. I would be getting an annuity to secure my future, I will inform my clients that index annuities exist then immediately tell them that I do not recommended them. |
Dunkin a FIXED annuity or Fixed Indexed Annuity is a place to put your money after you've made your money.
Now in your original post you state:
"I have a client that wants an annuity, but I do not know a whole lot about them,"
but then state in your last post:
"I will inform my clients that index annuities exist then immediately tell them that I do not recommend them."
So, in the spirit of argument and not to be argumentive please post why you "do not recommend them."
Keep Chris Hanson's "Aunt Alice" in mind. Had she put her entire life's savings into a Fixed Indexed Annuity on or about April 13th 2008 of this year every dime of her money would be SAFE and sound TODAY!
Had she bought a mutual fund the mirrors the S & P 500 on or about April 13th 2008 (S&P 1,332 then) she would have suffered a 34.3% loss as of Friday, December 5th 2008. (S&P 876 now)
A 34.3% loss in one year would require a 52.2% gain the following year to make up for that type of loss.
Let's put this into dollars; $500,000 in the market on or about April 13th 2008 is now only worth $328,500.
Clients who put their money into a FIXED Indexed Annuity on or about April 13th 2008 still have their $500,000.
This is why proposed SEC rule 151A is a bogus bunch of bllsht.
Broker-Dealers and their Registered Representatives are going to Court en masse in 2009.
Poor "Aunt Alice" had she only listened to the Insurance Agent she wouldn't have lost any of her money.
Well, maybe she can... move in with Chris?
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GarySpicuzza
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| Posted: Mon Dec 08, 2008 6:06 am Post subject: |
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| I know how they work, I just didn't know who was the best company to work with, or how much I should recommend they put in. I was also wondering if this is even a good time to get one with the interest rates so low. |
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ChristopherDunkin
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| Posted: Mon Dec 08, 2008 12:25 pm Post subject: |
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| Quote: | | I was also wondering if this is even a good time to get one with the interest rates so low. |
That's a legitimate question that has a mathematical answer.
On April 13th 2008 if someone put $500,000 into a mutual fund that mirrors the market they would have lost $171,500 or 34.3% of their money and would only have $328,500 left.
Had that same person paid $500,000 of premium into a Traditional Fixed Annuity with a pathetic 3% GUARANTEED interest rate by April 13th 2009 (one year later) they would be GUARANTEED to have $515,000 dollars.
Now for the eye opener.
How much impossible gain does the market have to return to equal the same $515,000 dollar amount?
 The answer is 56.77%
AND one more thing...one must continue to RISK what they have left, the $328,500, in the hope the market will come back sometime in their lifetime.
Even IF ten years from now the person makes it back to their $500,000 they would have effectively had 0% growth on their money over the past ten years.
The 3% FIXED annuity would be worth $671,958 ten years from now.
Sometimes it's not what you gain, it's what you don't lose.
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Gary Spicuzza, *SAFE
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*Self Appointed Financial Expert |
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GarySpicuzza
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| Posted: Tue Dec 09, 2008 10:26 am Post subject: insurance |
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| Here we go again.........something ELSE I'm confused about. Annunities, 'Fixed Rates', etc............OMG!! I'm REAALY trying to start something to help me in the future..I mean, if for some reason I can't work anymore, something to help in those 'hard times', etc. Life Insurance, Investments,etc....SOOO many to look into. Something I can count on..ya know? |
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sdchargersfan
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| Posted: Wed Dec 10, 2008 12:34 pm Post subject: |
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Well maybe this will clear some things up straight from the horses mouth!
November 19, 2008
Aviva Addresses Misconceptions on Annuity Products:
system edited-duplicate content converted to image
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Gary Spicuzza, *SAFE
Copyright 1956.
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*Self Appointed Financial Expert |
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GarySpicuzza
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| Posted: Wed Dec 10, 2008 12:40 pm Post subject: |
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Gary, let her (sd) and others know as well, do all annuitys require an inital large payment or are any of the 'good' ones allowed a payment/monthly or quarterly payment to increase your principle, only a one time lump payment and if so (lump) what is the lowest amount?
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Lori
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| Posted: Wed Dec 10, 2008 2:44 pm Post subject: |
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The minimum initial premium is $5,000 and the minimum additional annual premuim is $1,000.
That's what they say, but I've NEVER had a company refuse additional premium because it was "below" the stated $1,000 minimum.
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Gary Spicuzza, *SAFE
Copyright 1956.
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*Self Appointed Financial Expert |
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GarySpicuzza
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| Posted: Thu Dec 11, 2008 12:40 am Post subject: |
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thank you gary
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"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr. |
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Lori
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