| Variable Annuity Nightmare |
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mizumania
First Time Poster
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| Variable Annuity Nightmare |
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 Saw Suze Orman show today and was disheartened when I heard her opinion on variable annuities. She thinks that this type of investment is the lowest of the low. She however did not advise what would do you do if you are already in this type of investment such as myself. I rolled over my 401(K) 7 year ago into New York Life's variable annuity thinking that because of the insurance feature (the reset value) it was a safe investment. My account has increased approximately 33% since inception. Recently I contemplated taking some of my gains and was told that I was really only advancing my death benefits. I would appreciate members advice and experiences on my options, if any. Thanks in advance!
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Sun Aug 21, 2005 2:09 am |
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sym207
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i saw the show too
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Mon Aug 22, 2005 11:46 pm |
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LottomagicZ4941
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Having an annuity in a taxable account is redundant. But other then that I actually like annuities.
And annuities appeal to peole who have longer life expetancies then average.
You probably have relatives living long or else no one would have been able to sell you on an annutitie.
Suzie buggs me. Jealousy because she is so basic and makes more money then I do.
Really it is sad if 98% of the population doesn't know more then her!!!!
I may convert my Universal Life to an annuity when the insurance gets more expensive.
Annunities are not as great as some clam. Nor are they as bad as some claim!!!!
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Fri Oct 07, 2005 7:05 pm |
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jlee1224
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Variable annuities are not bad, as you may have heard some people say. Almost no specific money strategy is bad to all people in all situations.
If you have already maxed out 401ks and IRAs, you have money for a rainy day, are adequately life and health insured....and you have money leftover for retirement, variable annuities are a good place then to put some money for tax deferred growth. It is when people who are young, who aren't maxed out on 401ks, who aren't adequately insured, who are pitched these variable annuities, that is where the bad name comes from.
So, Mizumania...how old are you, and what do your other retirement accounts/portfolio look like? In much like most questions asked in the money world, the answer will depend on other details.
Also, I agree Suze Orman is very basic. But most of the time, she has sound basic advise. And she deals with the emotional and psychologically side of personal finance that is maybe missing in other shows.
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Fri Oct 07, 2005 7:13 pm |
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Rolo
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| Re: Variable Annuity Nightmare |
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quote:
Originally posted by mizumania
My account has increased approximately 33% since inception.
That doesn't say anything...need a date on 'inception'.
quote:
Originally posted by mizumania
Recently I contemplated taking some of my gains and was told that I was really only advancing my death benefits.
Does the principal of the annuity increase from which payments are distributed?
Wait, are you retired or still investing for retirement? If you're not retired then you got sharked.
"Expect me when you see me."
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Fri Oct 07, 2005 9:19 pm |
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