Annuity Contract (Kiplinger - Personal Finance Advice)

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PostPosted: Sun May 25, 2008 1:20 pm   Post subject: Annuity Contract (Kiplinger - Personal Finance Advice)  

Kiplinger - Timely - Trusted - Personal Financial Advice



I've found Kiplinger to be the largest collection of financial clueless clowns on the Internet.



THIS article titled The Great Annuity Rip-Off written by Kimberly Lankford is a prime example of just how utterly ignorant Kiplinger is on the topic of annuities in general and FIXED annuities in particular.



What's worse is the fact they allow absolutely false, misleading and inaccurate information to remain on their site.



Let's have some fun with Ms. Lankford by pitting her words against actual fixed annuity contract provisions.



We need to go no further than her opening remarks.



Kimberly Lankford wrote:

Quote:
Seven years ago, when Alice Bouchard was 85 and needed her money to be easily accessible, an insurance agent sold her a deferred annuity that tied up her money until she was 101. If she had needed to withdraw the money during the first five years after buying the annuity, she would have paid a massive 25% surrender charge.



Now I don't doubt the un-named annuity product had an "ANNUITY DATE" set for 16 years in the future and IF the un-named annuity product did in fact have a 25% surrender charge during the first 5 contract years it would have been because it paid an UP-FRONT interest bonus in the neighborhood of 10% perhaps for ALL new premium going into the contract during the first 5 years. We will never know since she doesn't say which insurance company product she's referencing,



Attorneys, News Media, Stock Brokers and Bankers simply cannot seem to comprehend the plain English meaning of Annuity Contract terminology.



Seniors over age 70 who buy the vast majority of annuities nationwide have no problem understanding:



The Annuity Date printed on the Contract Data page or the Surrender Charge schedule CLEARLY written in BOLD print on the Contract Data page or the plain English terms of the 10% FREE Withdrawal provision. Please click on the links to see these as they actually appear in most ALL fixed annuity contracts.



On the Contract Data page of a case I just wrote it shows the Annuitant's age 79 and an Annuity Date of 05/16/2034. She will be 105 years old on the Annuity Date.



But what does the Annuity Date mean and can it be changed?



The Annuity Date is the maximum date in the future the Annuitant can hold the contract in tax deferral. On the Annuity Date one MUST elect a settlement OPTION. The Owner/Annuitant can CHANGE the Annuity Date to ANY date after the first contract year.



So when this clueless clown Kimberly Lankford writes:

Quote:
"...an insurance agent sold her a deferred annuity that tied up her money until she was 101."



She's referring to the Annuity Date printed on the Contract Data page without an elementary understanding of what that term means in the contract and she either conveniently doesn't inform her reader's the Annuity Date can be changed or simply doesn't know the subject matter on which she's writing about.



Moving on to her next half truth, by the way, a half truth is a lie, also known as, a material misrepresentation:



Quote:
If she had needed to withdraw the money during the first five years after buying the annuity, she would have paid a massive 25% surrender charge.





Hmmmm, this gives the reader the impression that ANY money withdrawn during the first 5 years would incur "a massive 25% surrender charge."



Really? What about the 10% FREE Withdrawal provision. Did you forget about that Kimberly or do you just not know or are you purposely misrepresenting yourself again?



A person would have to go out of their way and do extraordinary research to find ANY annuity product sold by any Insurance Company that DOES NOT have a 10% FREE Withdrawal provision.



Please review the actual fixed annuity contract provisions below.



Please read Ms. Kimberly Lankford's article in its entirety.



Then please post your questions about any of her absurd blanket condemnations regarding an entire insurance product line of which over $200 billion dollars are invested in each and every year and I will be happy to respond.



The Contract Data page:







The Annuity Date clause:







The 10% Free Withdraw provision:





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PostPosted: Tue May 27, 2008 1:12 am   Post subject:   

Just shows how easy it is to bash an agent or insurance /annuity company when a customer mis-understands a policy.



It is a real shame for those of us in this profession who strive to protect our clients assets to be demonized by the press.



the general public seems to be buying it. The other day my kid brother called me cold hearted for selling insurance.



This comes from a guy who designs and builds signs for establishments (I couldnt put in the c word) Very Happy in los vegas.



mac



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PostPosted: Tue May 27, 2008 7:22 am   Post subject:   

Quote:
The Owner/Annuitant can CHANGE the Annuity Date to ANY date after the first contract year.


How long does an annuity contract allow the annuitant to do it?

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PostPosted: Tue May 27, 2008 7:31 am   Post subject:   

hi Gary..

Nice explanation of annuity contract facts!

It is fairly understandable how this free withdrawal amount would be provided.

Quote:
The free withdrawal amount will be equal to 10.00% of the Accumulated Value as of the Contract Anniversary coinciding with the first day of that contract Year.


One thing I'd like to ask in this regard is whether there would be an upper-cap on this accumulated value upon which the afore-mentioned 10% would be applicable? Or is it that there would be a free withdrawal worth 10% of any amount? Are there any state-specific guidance available for it? Norma_hepburn

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PostPosted: Wed May 28, 2008 3:05 am   Post subject:   

help-needed08 wrote:

Quote:
How long would the annuitant be able to do it?


Well they would have until the Annuity Date printed on the annuity contract data page to change the annuity date meaning they want to elect an annuitization settlement OPTION sometime after the first year and before,

(in the actual policy above), May 16th 2034.





Norma_hepburn wrote:

Quote:
One thing I'd like to ask in this regard is whether there would be an upper-cap on this accumulated value upon which the afore-mentioned 10% would be applicable? Or is it that there would be a free withdrawal worth 10% of any amount? Are there any state-specific guidance available for it? Norma_hepburn


The 10% free withdrawal provision is provided each an every contract year. Some companies allow 10% per year up to a cumulative withdraw of 50% if no previous withdrawals have been taken. Others allow 10% per year or 20% EVERY "other" year if no withdrawals were made in the previous contract year.



But typically it's 10% per year of the account value.


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PostPosted: Sun Jan 14, 2018 3:48 am   Post subject: I have a deal for you.  

Hi I have a deal for you.



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You Interested in hearing details?


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PostPosted: Wed May 22, 2019 11:36 pm   Post subject: היי  

?היי יש לי לקוחות חדשים בשבילך יכל לעניין אותך


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