I bought a variable annuity . It has tripled in value . When I start withdrawing from it at age 67 it will cover all my living expenses. It should be over one million dollars by that time. I use to think it was the worst investment I ever made. But thats because I was invest too conservative. Got aggessive 10 years ago. As I get closer to 67 its possibly the best. I will have a guaranteed income for life no matter what the market does. I may never have to touch my IRA or SS to live off of.
A Variable annuity is just part of the income bucket. It guarantees a income for life. Its not the end all and be all. Consider it as part of your retirement income stream just like SS. By the way SS is the biggest Annuity in the Country. Its run by the Gov.
If i have a pension, and i have an annuity, should I worry that I'm locking in too much dedicated income in stream?(I have a a bucket of Equitable index-linked variable annuity product.Its only a quarter of my holdings though.)
You put that 500k in a fixed annuity with Ryder principle protection some ups NO DOWNS and if the person is 70 2 years in 55k guaranteed. With no down side absolutely none. Principle protection. Yes the variable cash can gain a gazillion dollars. At that age you go by not what it might do, but what it will do. The good thing about the variable vs fixed is once you draw upon it that's your payment for life.
Had a variable annuity. The fees they charge and the way they count interest, I averaged less than 2% real interest between 2009 to 2020! I transferred everything to a fixed annuity that is locked in at 5.25%. No more fees, and I know what I'm getting. My annuity has grown more in 3.5 years than it did in almost 11 years.
Yes,but I was told it would give me to 6.5 % on the good years,and never loose on bad. I never lost on bad years, but my best year was 3.7% minus 1% management fee. Annuities are a conservative investment.
I have several MYGA of various lengths. One was 4.3% and the others are 5.25 to 5.75 depending on when I bought them. I understand them because they are simple and guys like me need simple. I always wonder why so many retirement instraments are so complicated that even when you ask someone who has one, they can't explain it. I view the MYGAs as almost comparable to a C.D. And I do know the insurance is probably not as good as FDIC, but I choose solid companies like New Your Life that have weathered many difficult financial times. The states provide insurance in many states, but I have my doubts about that insurance in times of financial distress.
I hear you but variables are not for me. Too many “ifs” and the fees have always been too high for my liking. I’m not interested in the “flexible growth potential.” Different for a SPIA, which has a known internal ROR and no unknowns. My “potential” funds are in the market.
But a SPIA although great is irrevocable. You give up the total asset for the payment. They pay more for that but some people don't mind. I always hate when they are 100 percent in control but Spias go back to the Romans. This guy says the 500k will go to 1 mil in 10 years this is laughable. My annuities variable were maxed at 300 K after 12 years. I understand that our economy has grown since 2012 but man this guy's just writing numbers. He also says annuitize That's fine wtf. Less than 5 percent annuitize plus when you do your cash amount is gone. The insurance company takes it. The dude is just writing numbers.
@ a SPIA is irrevocable, and that’s the point. Is it worth giving up a certain percentage of your portfolio for a known payment and return on that investment? That’s a question that only the investor can answer. Personally, I’d allocate no more than 20% of a total portfolio to an annuity, whichever one the buyer chooses.
Coincidentally, was just watching a TH-cam music reactor review Boston’s “Peace of Mind”….thats what the annuity gave me- peace of mind!
Josh, good discussion. Could you add links to some of the websites you were using ?
I bought a variable annuity . It has tripled in value . When I start withdrawing from it at age 67 it will cover all my living expenses. It should be over one million dollars by that time. I use to think it was the worst investment I ever made. But thats because I was invest too conservative. Got aggessive 10 years ago. As I get closer to 67 its possibly the best. I will have a guaranteed income for life no matter what the market does. I may never have to touch my IRA or SS to live off of.
Variable Annuities are very good they give you a guarantee once you put a rider on the annuity. By the way Josh's courses are Excellent!!!
To be considered only after you have taken advantage of all of the social security delayed credits
The fees are for the insurance company to take on the market risk instead of the beneficiary.
A Variable annuity is just part of the income bucket. It guarantees a income for life. Its not the end all and be all. Consider it as part of your retirement income stream just like SS. By the way SS is the biggest Annuity in the Country. Its run by the Gov.
Ask Stan the Annuity man to buy annuities. He has a utube channel.
If i have a pension, and i have an annuity, should I worry that I'm locking in too much dedicated income in stream?(I have a a bucket of Equitable index-linked variable annuity product.Its only a quarter of my holdings though.)
You put that 500k in a fixed annuity with Ryder principle protection some ups NO DOWNS and if the person is 70
2 years in 55k guaranteed. With no down side absolutely none. Principle protection. Yes the variable cash can gain a gazillion dollars. At that age you go by not what it might do, but what it will do. The good thing about the variable vs fixed is once you draw upon it that's your payment for life.
Had a variable annuity. The fees they charge and the way they count interest, I averaged less than 2% real interest between 2009 to 2020! I transferred everything to a fixed annuity that is locked in at 5.25%. No more fees, and I know what I'm getting. My annuity has grown more in 3.5 years than it did in almost 11 years.
You obviously had it invested conservatively. Shouldn’t do that in a variable annuity
Yes,but I was told it would give me to 6.5 % on the good years,and never loose on bad. I never lost on bad years, but my best year was 3.7% minus 1% management fee. Annuities are a conservative investment.
I have several MYGA of various lengths. One was 4.3% and the others are 5.25 to 5.75 depending on when I bought them. I understand them because they are simple and guys like me need simple. I always wonder why so many retirement instraments are so complicated that even when you ask someone who has one, they can't explain it. I view the MYGAs as almost comparable to a C.D. And I do know the insurance is probably not as good as FDIC, but I choose solid companies like New Your Life that have weathered many difficult financial times. The states provide insurance in many states, but I have my doubts about that insurance in times of financial distress.
@@robertbass974 I always viewed annuities as a conservative investment because I often buy them when the stock market looks a little risky.
I hear you but variables are not for me. Too many “ifs” and the fees have always been too high for my liking. I’m not interested in the “flexible growth potential.”
Different for a SPIA, which has a known internal ROR and no unknowns. My “potential” funds are in the market.
But a SPIA although great is irrevocable. You give up the total asset for the payment. They pay more for that but some people don't mind. I always hate when they are 100 percent in control but Spias go back to the Romans. This guy says the 500k will go to 1 mil in 10 years this is laughable. My annuities variable were maxed at 300 K after 12 years. I understand that our economy has grown since 2012 but man this guy's just writing numbers. He also says annuitize That's fine wtf. Less than 5 percent annuitize plus when you do your cash amount is gone. The insurance company takes it. The dude is just writing numbers.
@ a SPIA is irrevocable, and that’s the point. Is it worth giving up a certain percentage of your portfolio for a known payment and return on that investment? That’s a question that only the investor can answer. Personally, I’d allocate no more than 20% of a total portfolio to an annuity, whichever one the buyer chooses.