Don't forget to keep an eye on the surrender and withdrawal charges, the schedule of payments, management costs and the option of lifelong dispersal. These are very important factors to be considered by an annuitant.
Posted: Wed Nov 11, 2009 10:31 pm Post Subject:
Buying and selling annuities and structured settlements can be a complex process, andit's important to make sure you've got all your avenues covered - mistakes in this area can prove costly indeed.
Posted: Thu Nov 12, 2009 07:35 am Post Subject:
Buying and selling annuities and structured settlements can be a complex process, and it's important to make sure you've got all your avenues covered
It would help if someone explains the different avenues as pointed by heidrek. I'd like to know about the risks associated with such investments.
Posted: Mon Nov 30, 2009 10:28 pm Post Subject:
What if the market does poorly and over the course of 20 years, the value of his MF only increases 1% compounded? He'd have $122,000. In the VA, he would have $200,000*. *This particular VA guarantees to double in 20 years. The $200,000 can be taken in a lump sum.
I've seen a few newer VAs with costly income guarantees following annuitization, but not lump sum guarantees like you describe.
What insurer is marketing a VA which provides a near 4% guarantee on principal? Certainly has to increase the expense to way more than 2% if they're going to offer a 4% guarantee. The typical VA annual M&E and other fees usually are about 2% or slightly less.
The typical fixed annuity has only a 3% guarantee.
Enlighten me, please.
To respond to the initial question of the thread, a VA for a 26 year old is probably an unsuitable investment, especially if that person is not already maximizing their contributions to all other available retirement plans, and it could result in loss of an agent's securities registrations for encouraging such an application. Additionally, most companies would decline the transaction on the same basis. All insurers that I'm aware of have suitability forms that must be submitted regardless of the applicant's age. FINRA essentially demands it.
Posted: Tue Dec 01, 2009 03:25 am Post Subject:
MaxHerr, I don't like to talk specifics on a bulletin board that is read by the public. Let me give you a big enough hint to easily figure out the company in question.
1) Very large mutual insurance company
2) In existence since around the Civil War
3) Not NYL or NML
They have both a 10 year and 20 year GMAB. The 10 year is 0% and the 20% is a guaranteed double which is around 3.2%.
Posted: Wed Sep 23, 2009 05:06 am Post Subject:
Don't forget to keep an eye on the surrender and withdrawal charges, the schedule of payments, management costs and the option of lifelong dispersal. These are very important factors to be considered by an annuitant.
Posted: Wed Nov 11, 2009 10:31 pm Post Subject:
Buying and selling annuities and structured settlements can be a complex process, andit's important to make sure you've got all your avenues covered - mistakes in this area can prove costly indeed.
Posted: Thu Nov 12, 2009 07:35 am Post Subject:
Buying and selling annuities and structured settlements can be a complex process, and it's important to make sure you've got all your avenues covered
It would help if someone explains the different avenues as pointed by heidrek. I'd like to know about the risks associated with such investments.
Posted: Mon Nov 30, 2009 10:28 pm Post Subject:
What if the market does poorly and over the course of 20 years, the value of his MF only increases 1% compounded? He'd have $122,000. In the VA, he would have $200,000*. *This particular VA guarantees to double in 20 years. The $200,000 can be taken in a lump sum.
I've seen a few newer VAs with costly income guarantees following annuitization, but not lump sum guarantees like you describe.
What insurer is marketing a VA which provides a near 4% guarantee on principal? Certainly has to increase the expense to way more than 2% if they're going to offer a 4% guarantee. The typical VA annual M&E and other fees usually are about 2% or slightly less.
The typical fixed annuity has only a 3% guarantee.
Enlighten me, please.
To respond to the initial question of the thread, a VA for a 26 year old is probably an unsuitable investment, especially if that person is not already maximizing their contributions to all other available retirement plans, and it could result in loss of an agent's securities registrations for encouraging such an application. Additionally, most companies would decline the transaction on the same basis. All insurers that I'm aware of have suitability forms that must be submitted regardless of the applicant's age. FINRA essentially demands it.
Posted: Tue Dec 01, 2009 03:25 am Post Subject:
MaxHerr, I don't like to talk specifics on a bulletin board that is read by the public. Let me give you a big enough hint to easily figure out the company in question.
1) Very large mutual insurance company
2) In existence since around the Civil War
3) Not NYL or NML
They have both a 10 year and 20 year GMAB. The 10 year is 0% and the 20% is a guaranteed double which is around 3.2%.
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