Just limping along at 5% per year.

GarySpicuzza

Traditional FIXED Annuities and Fixed Indexed Annuities are the most boring savings instrument on Earth.

You put your money in and the insurance company credits interest on your money without any of your principal being at risk with the Wall Street brokers who I affectionately refer to as... "the day traders playing stocks like a flea market swap meet." (With your money!)

Since a picture is worth a thousand words I thought I'd visually post the reason why billions of dollars each and every year are poured into FIXED annuities by persons age 70 and above.

For mathematical triva....a 25% loss in one year will require a 47% gain the following year to just break even with a safe investment that's just limping along at 5% per year.

A 10% loss will require a 22.5% gain the following year to just break even with a safe investment that's just limping along at 5% per year.

The new section 408(a) plans are not even distant cousins to the old plans of even 5 to 8 years ago.

Okay where's the pics?

Ooops! NOT those pics!!!

The Broker Dealer · Posted: Tue May 20, 2008 7:25 pm Post subject:

I have clients in Equity Indexed Annuities and they love them. I had some people gain 14-16 points on it two years ago. As for fixed, most seniors are real conservative and want to plan on what to expect. They just dont like suprises and get 5% is more attractive then the possibility of 0%.

Fishman · Posted: Thu May 22, 2008 7:36 pm Post subject:

The Broker Dealer · Posted: Thu May 22, 2008 7:55 pm Post subject:

Right now, not bad, but alot better than if they were directly in the market. I use Aviva, and they dont credit the account until the months over and they use 3 different funds... Whichever fund did better that month than that is the one that they use.

Just limping along at 5% per year.

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