Just limping along at 5% per year.

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Posted: Tue May 20, 2008 11:20 am Post subject: Just limping along at 5% per year.

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!!! _________________ Gary Spicuzza, SAFE Copyright 1956. No Rights Reserved. Self Appointed Financial Expert

GarySpicuzza

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Joined: 03 Apr 2008
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Location: West Pasco County, FL
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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%. _________________ Ramiz A. Hakim Independent Insurance Broker 5697 Charlesgate Rd. Huber Heights, OH 45424 866.497.4014 Office 206.203.4602 Fax Life : Health : Annuities : Medicare : Disability

TheBrokerDealer

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Joined: 19 May 2008
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Posted: Thu May 22, 2008 7:36 pm Post subject:

Quote:

I had some people gain 14-16 points on it two years ago

And how are these accounts doing now?

Or have they been transfered to fixed annuites? Very Happy

Fishman

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Joined: 04 Apr 2008
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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. _________________ Ramiz A. Hakim Independent Insurance Broker 5697 Charlesgate Rd. Huber Heights, OH 45424 866.497.4014 Office 206.203.4602 Fax Life : Health : Annuities : Medicare : Disability