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03-19-2008, 05:16 AM
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#1
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Confused about dryer sheets
Join Date: Mar 2008
Posts: 5
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bigcedargrandma
Scared to death about finances and retirement!!! My husband and are are both teachers (38 years) and really want to retire. We have annuity money from our state teachers account that our Prudential agent thinks we should roll over into a Prudential Premier Variable Annuity account. Does anyone know if this is a good thing?? On paper the results look fantastic...double your money in 10 years. HELP.
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03-19-2008, 05:55 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Jul 2007
Posts: 2,487
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Is the double your money in 10 years a promise? What happens if you keep it where it is...+50%? double? What kind of commission do you have to pay the agent? If you have a mil or more in your state teachers account, that could easily be $50,000 for the agent! Be careful! Read the fine print!
Also, when do you want to retire? Do you HAVE to move your money, and if so, when? If you don't have to move it, or have some time, SLOW DOWN, BREATHE DEEP, read this board, a few books on the subject, and then make an informed decision. NEVER jump on a product because an insurance agent is selling it! Only buy it because you have studied both the product and all other alternatives, and have decided that it is either exactly what you want or the best alternative.
hope this helps a bit.
R
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03-19-2008, 06:14 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,872
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Quote:
Originally Posted by bigcedargrandma
Scared to death about finances and retirement!!! My husband and are are both teachers (38 years) and really want to retire. We have annuity money from our state teachers account that our Prudential agent thinks we should roll over into a Prudential Premier Variable Annuity account. Does anyone know if this is a good thing?? On paper the results look fantastic...double your money in 10 years. HELP.
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Without knowing details about the products you are talking about its difficult to give objective advice, however, my gut says don't do it. It sounds like you have a nice nest egg in the state fund that the man from the Pru wants to get his hands on. I bet there are lots of fees and the return he's quoting is best case. If you've been in a state plan for 38 years I imagine you'll be getting a nice check from that state annuity for the rest of your life. Run through your budget and if you are ok then just leave it alone.
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03-19-2008, 06:25 AM
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#4
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Full time employment: Posting here.
Join Date: Aug 2004
Location: Hagersville
Posts: 794
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Hello and welcome. My philosophy is with respect to investments is if an insurance agent is selling it look very very carefully at all alternatives then buy something else.
Have you been to a for fee financial planner. These people sell nothing but give financial advice for a fee and since they do not sell their advice is not biased by their desire to profit. One of these saved me lots of possible grief fifteen years ago.
Learn as much as you can yourself.
Again welcome
Bruce
__________________
I wish I was half as good as my dog thinks I am!
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03-19-2008, 06:40 AM
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#5
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gone traveling
Join Date: Nov 2005
Posts: 2,146
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Quote:
Originally Posted by bigcedargrandma
Scared to death about finances and retirement!!! My husband and are are both teachers (38 years) and really want to retire. We have annuity money from our state teachers account that our Prudential agent thinks we should roll over into a Prudential Premier Variable Annuity account. Does anyone know if this is a good thing?? On paper the results look fantastic...double your money in 10 years. HELP.
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Both teachers 38 years? Pension?? Look I taught for 28+ years, and took an early retirement in Dec 06 wife is not working . we sold the house, yes I know BEFORE all the trouble in the housing markets for waaaay too much money , bought a home with really no mortgage and my pension pays for just about everything and I took a hit losing 11% of the pension by taking it at 50 years of age. Now I teach part time make an extra 3K a month and man its perfect!
Run your numbers,
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03-19-2008, 06:58 AM
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#6
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Thinks s/he gets paid by the post
Join Date: Jul 2007
Posts: 2,487
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good advice newguy.
R
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03-19-2008, 08:30 AM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2006
Location: Washington, DC
Posts: 11,327
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I agree with Rambler, be very skeptical and take your time to figure out your options. Brokers are all over retiring Feds trying to convince them to turn over their TSP funds to "the pros" who can get you some real returns. They end up leaving the most efficient set of funds on the planet for who knows what. But the brokers get their commission.
__________________
Idleness is fatal only to the mediocre -- Albert Camus
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03-19-2008, 08:57 AM
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#8
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Full time employment: Posting here.
Join Date: Mar 2005
Posts: 927
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Did you approach the agent or did the agent approach you?
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03-19-2008, 09:01 AM
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#9
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,872
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Quote:
Originally Posted by donheff
I agree with Rambler, be very skeptical and take your time to figure out your options. Brokers are all over retiring Feds trying to convince them to turn over their TSP funds to "the pros" who can get you some real returns. They end up leaving the most efficient set of funds on the planet for who knows what. But the brokers get their commission.
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I agree, don't trade in a good and guaranteed income from a state annuity
for only the possibility of higher returns and the surety of high fees and greater risk. Do your numbers, budget and if you have enough enjoy your
retirement. If you don't have enough income I'd work part time before I transfered an annuity you've worked 38 years to fund.
Bottomline, run away from the insurance agent, and do some research and budgeting. Ask questions here, there are plenty of folks who will help and don't get paid for it either.
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03-19-2008, 05:09 PM
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#10
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Confused about dryer sheets
Join Date: Mar 2008
Posts: 5
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thanks for the advice
After reading your replies and researching variable annuities, we are meeting with our free financial advisor (free until we start taking money out of our accounts). I think we will be fine in retirement...two teacher pensions, two social securities, and state annuities as well as 401 and 403 accounts. Our big problem is a 175,000 mortgage (we tore down an old lake cottage and built our lake retirement home). We're keeping the mortgage because it has a very low interest rate, even though one insurance agent told us to take the money out of our annuity account and pay it off (because he doesn't believe in any debt). We don't plan lots of big trips because we love it here at the lake with our boat (if we can afford gas for it) and we have 4 adorable grandkids...all under 3...that are within 20 minutes of us.
We're going with our gut feeling...if it sounds too good to be true, it probably is!!
Now...one more question. We each have $150,000 life insurance policy with our school UNTIL we retire. Then, we only each have a $50,000 policy (whole life). Should be take out an additional term policy through the National Education Association for $100,000 each ...starts out at $75 a month (for both of us) goes up to around $100 a month until we are 70. Is it worth it? We just wanted it to pay off the house if one of us were to die.
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03-20-2008, 05:35 AM
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#11
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Thinks s/he gets paid by the post
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,635
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If the mortgage pay-off in the demise event of one or the other (or both, for that matter) is a "sleep easy" factor IMO you should get the term insurance. IMO, however, I do not think you need the annuity or, IMHO again, the FA.
__________________
Vietnam Veteran, CW4 USA, Retired 1979
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03-20-2008, 10:59 AM
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#12
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Recycles dryer sheets
Join Date: Aug 2003
Posts: 481
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Quote:
Originally Posted by bigcedargrandma
Now...one more question. We each have $150,000 life insurance policy with our school UNTIL we retire. Then, we only each have a $50,000 policy (whole life). Should be take out an additional term policy through the National Education Association for $100,000 each ...starts out at $75 a month (for both of us) goes up to around $100 a month until we are 70. Is it worth it? We just wanted it to pay off the house if one of us were to die.
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You should only insure risks that represent real financial hardship. If the death of one of you means a) a pension would stop, and b) you would continue to need that pension money to live (even though supporting fewer people), then you need life insurance. Otherwise save your money.
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