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Old 07-21-2012, 09:01 AM   #21
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If you still think you need any annuity, go to Vanguard, their fees are amogst the lowest. Then with interest rates so low, try to spread out the amount you want to put into an annuity over 3 years.....maybe, rates will be better by then and, since you'll be a little older the annuity will pay a small amount more than now.

Security in the form of an annuity is expensive. The guy trying to sell me one had just traded in his Cadillac for a more expensive Mercedes.....that's got to tell you something.
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Old 07-21-2012, 11:48 AM   #22
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I have a VA that I bought a number of years ago from Fidelity. I probably shouldn't have bought it but it hasn't been the disaster described in a lot of the earlier posts. I've since transferred it to Vanguard and now have it in their "VVA Conservative Portfolio" (60% bonds; 40% stocks.) I look at it as protection for my wife should I predecease her. (Our income will drop when I go; therefore she can make up some of it by annuitizing the VA.) If she predeceases me I'll probably use it for charitable purposes and/or to live high off the hog.

That said, I wouldn't touch a VA from anyone other than Fido, VG or TIAA-CREF.

It has grown nicely over the years as I previously had it in more aggressive portfolios.

Just my opinion.
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Old 07-22-2012, 01:58 AM   #23
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The only VA I care for is the Veterans Administration.
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Old 07-22-2012, 07:02 AM   #24
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What about vanguard deferred VA cost are not bad around .50 that is low. It grows tax deferred. ?
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Old 07-22-2012, 11:38 AM   #25
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What about vanguard deferred VA cost are not bad around .50 that is low. It grows tax deferred. ?
I'm not sure what you mean by "deferred" VA. In my VG VA (like any VA) the money does grow (hopefully) tax-deferred. The expenses are low for an annuity (but not as low as owning the comparable VG MFs outside of an annuity.) There are no sales commissions or surrender charges. That said, here are the disadvantages of a VG (or Fido or TIAA-CREF) VA compared to comparable mutual funds (assuming you are funding either with post-tax dollars):
- You will pay tax at your normal rate when you withdraw gains from the VA; from a regular MF you will pay only 15% (assuming they are LTCGs.) This, of course, could change depending on what the pols in DC do. Specifically, if you make withdrawals from your VA, you will pay tax at your normal rate on ALL of the money you withdraw until you draw it down to the basis (the amount of after-tax money you originally put into it.) After that the withdrawals are not taxed since you already paid tax on that money. If you annuitize, the monthly payments will be considered to be a combination of return of principal and earnings and you will proportionately pay tax on the earnings portion at your normal rate.
- The expenses are marginally higher.
- You are more limited in the "portfolios" within the annuity than you are with the whole universe of VG MFs. (This doesn't matter to me since I am an index investor and the VG VA has all the portfolios I need.)
- Overall, you have less flexibility and if you really want an annuity sometime, you can still accumulate the money in non-annuity MFs and then go buy an immediate annuity with the proceeds from the MFs.

As I said in the earlier post, it hasn't worked out bad for me but given the opportunity to revisit the decision, I would not buy the annuity and would keep the money in post-tax MFs.
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Old 07-22-2012, 01:14 PM   #26
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I have a taxable account and max out my Roth and simple Ira. I know taxable expenses are cheaper but VA seems so simple just buy index funds. I could be at 15% when I take money out so taxes could equal out. Thanks for your in put
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Old 07-23-2012, 02:37 AM   #27
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No VA for me either, but this year I have bought some deferred annuities, as discussed in other threads.

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I am looking to protect some of my assets in the form of an annuity. Rates for fixed annuities are very low. Any thoughts on VA's- advice and or specific products would be appreciated. Fed up with the roller coaster!!!
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Old 07-27-2012, 02:43 AM   #28
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You came to the wrong place for recommendations on which variable annuity to purchase. The insurance company and the salesman are the only sure winners on that product.
You must be [Mod Edit]
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Old 07-27-2012, 05:30 AM   #29
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I hope you are joking, right? If not, there is no need for personal attacks.

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Old 07-27-2012, 09:46 AM   #30
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You must be [Mod Edit]

You won't last long, but I'm putting you on ignore for the duration.
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Old 07-27-2012, 09:53 AM   #31
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You won't last long, but I' putting you on ignore for the duration.
Where is the fun in that?
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Old 07-27-2012, 12:07 PM   #32
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Where is the fun in that?
Don't feed the trolls.
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Old 07-27-2012, 12:17 PM   #33
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Feeling trolls is even worse than feeding them
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Old 07-27-2012, 12:20 PM   #34
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Feeling trolls is even worse than feeding them

Dang it. And I thought I proof read it, too.
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Old 07-27-2012, 05:56 PM   #35
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I hope you are joking, right? If not, there is no need for personal attacks.
1.7 trillion dollars in Variable annuities. Do you really think the only people benefiting are the insurance company and the salesman? Do you honestly think there's not a market for what the product offers? Learn to think objectively. And don't be so sensitive.
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Old 07-27-2012, 06:12 PM   #36
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1.7 trillion dollars in Variable annuities. ... Do you honestly think there's not a market for what the product offers?
P.T. Barnum knows exactly why all those folks bought them.
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Learn to think objectively.
Objective thinking and unbiased analysis reveal why the high costs of VA's make them poor investments. Like the lottery, only those who don't understand the costs/odds buy a ticket.
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And don't be so sensitive.
I suppose annuity salesmen get used to name calling and lack the sensitivity of the general population?
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Old 07-27-2012, 06:25 PM   #37
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P.T. Barnum knows exactly why all those folks bought them.

Objective thinking and unbiased analysis reveal why the high costs of VA's make them poor investments. Like the lottery, only those who don't understand the costs/odds buy a ticket.
I suppose annuity salesmen get used to name calling and lack the sensitivity of the general population?
Why are you calling me an annuity salesman?

Anyway.. Some people will pay the fees (for variable) for certain riders and benefits that they offer. It's not designed the beat individual stock picking or funds, why would you even think that?
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Old 07-27-2012, 06:27 PM   #38
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Feeling trolls is even worse than feeding them
Are you speaking from personal experience?
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Old 07-27-2012, 06:28 PM   #39
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I had a great day today. Helped my patients. Planned my next mobile clinic in Central America in Sept when we will help save lives again. Life is great, and trolls won't change anything to that...
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Old 07-27-2012, 06:31 PM   #40
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Why are you calling me an annuity salesman?


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...don't be so sensitive.
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