I believe the "reverse engineer" option on the calculator is not correct. In the example a monthly income amount is selected, but the results generated seem to reflect the monthly income as an annual amount. I tried an example of $1700 monthly income. The result showed income amount of $1700, and Income 10 year total of $17,000. That 10 year income should be $204,000 if 1700 monthly.
Isn’t the key here “ for the rest of your life”? If you die young before you use most or all of the original principle won’t your beneficiaries loose out vs. if that money had been invested elsewhere?
Depends on the annuity. Some annuities allow portion of principal to go to beneficiaries after death. But if you're dead, do you really care that much anyway? And you shouldn't be buying an annuity when you're young, anyway.
question on surrendering non-qualified annuity... if there is no growth in first 2 years, if annuity is surrendered with original money (minus surrender charges), will there be IRS penalty for cancelling annuity (less than 59.5yrs).?. Since there is no growth, I feel no IRS penalty. Right?. Ex: Invested 100K money 2 years back with non-qualified money (like savings account). No growth yet. Surrendering contract will give 100K -6K = ~94K. No IRS penalty in this case. Right?
The word " rider " is a bit confusing because " riders" on annuities are attachments that come additional fees" that lower the annuity income. Am I wrong ? You should have selection choice for MYGA, QLAC, etc
First, I went on the website and tried a number of scenarios. Each time a message came up "Your input produced no results. Please call." Second, ~1% annual fee on a treasury investment? That is in addition to the commission paid to the person who sold it. Who buys these products?
I cannot think of any rationale for me to ever invest in a annuity. But they are mildly interesting. The government has recently offered everything from T-bills, notes, and up through long--term bonds, as well as fixed-income bonds, that cover each investment and offer 100% secure return of total principal. The interest rates are competitive with corporate bonds, and usually better and more tax efficient than bank or brokered CDs.
Hey @a-borgia4993, the link for the calculator is in the description, and it does work! click2retire.com/incomeridercalculator Or were you referring to a different one? Let us know and we can help.
Hi William! We have several videos on our channel about annuities if you'd like to check them out. You are also welcome to call into our office and our team can try to point you in the right direction. Thanks for watching.
Yes, but it is guarenteed! I know some people with annuities that retired last year, and they are glad they didn't have to take large chunks of money out of their investments this year. An annuity is a very conservative investment, but, if you live beyond your life expectancy, your return increases, because now you are pulling out more than you put into the annuity.
@@jdgolf499 🙄Hmm🤔 Just Trying To Wrap My Head Around Your Last Sentence within Your Statement {{🤔"Your Return Increases, Because You're Pulling OUT More Than You Put INTO The Annuity"🧐}} Please Break Your Statement Down As-IF You're Talking To a 3•Yr•O Thanks!!!!
Yes but if left off an important point- as the money grows as you say 7 years- and you take out interest later- you STILL HAVE the 600,000 left. If you buy and annuity and collect the same interest after waiting 7 years- you have no principle ITS GONE FOREVER. Even if you took principle as well as interest- you likely will be far better off. It pays do do the math over time and see. But even a basic CD or treasury for 7 years would allow you to do better re. income today. Just saying. Thank you for your interesting video. There are definitely aspects to these annuities that we aren't being told about when they are sold. I am not sure why but it is almost impossible to understand the product you are being pitched.
Each annuity contract is different and may have features designed to address the issue you raise. Please feel free to reach out to us to discuss your specific situation and we can help determine whether a specific annuity fits into your overall retirement plan. We are here to help!
More from Troy: Thanks for watching and commenting N. One of the misconceptions about fixed indexed annuities is that after your “growth” period, or the accumulation phase, your money is gone forever. In your example, after the 7 years it’s designed to provide a lifetime income, but you still have access to your principal and if you die all your accumulated interest plus principal will go to your designated beneficiaries. I think you are confusing FIAs with Immediate Annuities. With immediate annuities, consumers choose to forego access to their principal but receive a guaranteed paycheck for a pre-determined number of years or life. You can choose joint life as well if you are married. This is called annuitizing. FIAs typically provide that option, but most people take the lifetime income without foregoing their principal and if you don’t want any income, your principal and accumulated interest is yours and available to do with as you please subject to any surrender charge schedule remaining. Usually, after the 10th year all surrender charges are gone and you can do what you choose with your money. It’s important not to confuse accumulated interest with the guaranteed rollup offered through these types of products. We have several videos going into this concept more deeply if you would like to learn more. Again, thanks for watching!
Hey @Gardenerbychoice, the calculator that he mentions in the video and that is also linked in the description is here: click2retire.com/incomeridercalculator We just tested it and it does work! Give it another try?
Buy term insurance while your children are young--you will get a lot more death benefits for your survivors--- For cash value, invest in no load mutual funds. The " Nice & Friendly" insurance salesman is there to make a commission. Imagine " building up capital worth ($$$) in your Annuity Policy and when you die, insurance company keeps the capital worth ($$$) and just pays out only the face insured amount.---What a racket--No wonder that if you cancel your policy 3 years after you start it, it is worth less than the amount you deposited in it. Nowadays, consumers are wiser and more educated; therefore the insurance companies have repackaged the same pig with different color lipsticks. Nobody comes to your home or office to sell you Fidelity No Load mutual funds because there is no Big Sales commission. Get your education somewhere other than an insurance salesman.
Hi Paul, Annuities are just one of many tools that can be used as part of an overall portfolio strategy and may or may not make sense for you. Please call Oak Harvest if you need help with retirement income and tax planning. We strive to be transparent with our fees while offering significant value to our clients. You can check that out here: oakharvestfg.com. Thanks for watching and take care!
@@OakHarvestFinancialGroup Annuities should never be apart of anyone's financial plan---They are only apart of the sleazy salesman's financial plan. Buy fixed term insurance if you have loved ones dependant upon your income. Invest the diference in nonAnyone selling annuites are there are commsions.
Great video Troy. A solid "peace of mind" component. Could allow you to be a little more aggressive in other parts of your investment strategy
Thank you Troy. An amazing tool for us to freely use!
Thanks for the information, education and the calculation tool.
I believe the "reverse engineer" option on the calculator is not correct. In the example a monthly income amount is selected, but the results generated seem to reflect the monthly income as an annual amount. I tried an example of $1700 monthly income. The result showed income amount of $1700, and Income 10 year total of $17,000. That 10 year income should be $204,000 if 1700 monthly.
Isn’t the key here “ for the rest of your life”? If you die young before you use most or all of the original principle won’t your beneficiaries loose out vs. if that money had been invested elsewhere?
Depends on the annuity. Some annuities allow portion of principal to go to beneficiaries after death. But if you're dead, do you really care that much anyway? And you shouldn't be buying an annuity when you're young, anyway.
@@rickallen9099 k
Hello - What are your thoughts on Allianz Benefit Control ABC - Fixed Index Annuity? Thanks.
question on surrendering non-qualified annuity... if there is no growth in first 2 years, if annuity is surrendered with original money (minus surrender charges), will there be IRS penalty for cancelling annuity (less than 59.5yrs).?. Since there is no growth, I feel no IRS penalty. Right?.
Ex: Invested 100K money 2 years back with non-qualified money (like savings account). No growth yet. Surrendering contract will give 100K -6K = ~94K. No IRS penalty in this case. Right?
The word " rider " is a bit confusing because " riders" on annuities are attachments that come additional fees" that lower the annuity income. Am I wrong ? You should have selection choice for MYGA, QLAC, etc
"Rider" works for government , hanging on people's shoulders
First, I went on the website and tried a number of scenarios. Each time a message came up "Your input produced no results. Please call." Second, ~1% annual fee on a treasury investment? That is in addition to the commission paid to the person who sold it. Who buys these products?
I cannot think of any rationale for me to ever invest in a annuity. But they are mildly interesting.
The government has recently offered everything from T-bills, notes, and up through long--term bonds, as well as fixed-income bonds, that cover each investment and offer 100% secure return of total principal. The interest rates are competitive with corporate bonds, and usually better and more tax efficient than bank or brokered CDs.
True. But the annuity will pay out as long as your are alive, or you or your spouse - if you pick the joint life option.
That tool is no longer available.... I hate that when companies promote website and then one year later they remove it.
Hey @a-borgia4993, the link for the calculator is in the description, and it does work! click2retire.com/incomeridercalculator
Or were you referring to a different one? Let us know and we can help.
I have inherited an anuity.dont know what to do.
Hi William! We have several videos on our channel about annuities if you'd like to check them out. You are also welcome to call into our office and our team can try to point you in the right direction. Thanks for watching.
We know any annuity is going to pay less then then a decent investment. After all there investing your money and taking the margin.
Yes, but it is guarenteed! I know some people with annuities that retired last year, and they are glad they didn't have to take large chunks of money out of their investments this year. An annuity is a very conservative investment, but, if you live beyond your life expectancy, your return increases, because now you are pulling out more than you put into the annuity.
@@jdgolf499 🙄Hmm🤔 Just Trying To Wrap My Head Around Your Last Sentence within Your Statement {{🤔"Your Return Increases, Because You're Pulling OUT More Than You Put INTO The Annuity"🧐}} Please Break Your Statement Down As-IF You're Talking To a 3•Yr•O Thanks!!!!
Yes but if left off an important point- as the money grows as you say 7 years- and you take out interest later- you STILL HAVE the 600,000 left. If you buy and annuity and collect the same interest after waiting 7 years- you have no principle ITS GONE FOREVER. Even if you took principle as well as interest- you likely will be far better off. It pays do do the math over time and see. But even a basic CD or treasury for 7 years would allow you to do better re. income today. Just saying. Thank you for your interesting video. There are definitely aspects to these annuities that we aren't being told about when they are sold. I am not sure why but it is almost impossible to understand the product you are being pitched.
Each annuity contract is different and may have features designed to address the issue you raise. Please feel free to reach out to us to discuss your specific situation and we can help determine whether a specific annuity fits into your overall retirement plan. We are here to help!
More from Troy: Thanks for watching and commenting N. One of the misconceptions about fixed indexed annuities is that after your “growth” period, or the accumulation phase, your money is gone forever. In your example, after the 7 years it’s designed to provide a lifetime income, but you still have access to your principal and if you die all your accumulated interest plus principal will go to your designated beneficiaries. I think you are confusing FIAs with Immediate Annuities. With immediate annuities, consumers choose to forego access to their principal but receive a guaranteed paycheck for a pre-determined number of years or life. You can choose joint life as well if you are married. This is called annuitizing. FIAs typically provide that option, but most people take the lifetime income without foregoing their principal and if you don’t want any income, your principal and accumulated interest is yours and available to do with as you please subject to any surrender charge schedule remaining. Usually, after the 10th year all surrender charges are gone and you can do what you choose with your money. It’s important not to confuse accumulated interest with the guaranteed rollup offered through these types of products. We have several videos going into this concept more deeply if you would like to learn more. Again, thanks for watching!
Just tried it & it doesn’t work,😡
Hey @Gardenerbychoice, the calculator that he mentions in the video and that is also linked in the description is here: click2retire.com/incomeridercalculator
We just tested it and it does work! Give it another try?
Buy term insurance while your children are young--you will get a lot more death benefits for your survivors--- For cash value, invest in no load mutual funds. The " Nice & Friendly" insurance salesman is there to make a commission. Imagine " building up capital worth ($$$) in your Annuity Policy and when you die, insurance company keeps the capital worth ($$$) and just pays out only the face insured amount.---What a racket--No wonder that if you cancel your policy 3 years after you start it, it is worth less than the amount you deposited in it. Nowadays, consumers are wiser and more educated; therefore the insurance companies have repackaged the same pig with different color lipsticks. Nobody comes to your home or office to sell you Fidelity No Load mutual funds because there is no Big Sales commission. Get your education somewhere other than an insurance salesman.
Hi Paul, Annuities are just one of many tools that can be used as part of an overall portfolio strategy and may or may not make sense for you. Please call Oak Harvest if you need help with retirement income and tax planning. We strive to be transparent with our fees while offering significant value to our clients. You can check that out here: oakharvestfg.com. Thanks for watching and take care!
@@OakHarvestFinancialGroup Annuities should never be apart of anyone's financial plan---They are only apart of the sleazy salesman's financial plan. Buy fixed term insurance if you have loved ones dependant upon your income. Invest the diference in nonAnyone selling annuites are there are commsions.
Annuities are loaded with high fees. Stay away!