Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Aviva Balanced Allocation Annuity - Buy or Run?
Old 08-26-2012, 07:41 PM   #1
Confused about dryer sheets
 
Join Date: Aug 2012
Posts: 1
Aviva Balanced Allocation Annuity - Buy or Run?

I retired with ~34 years pension credit and have a defined benefit pension. I still have some money sitting in a deferred comp that I can't touch for 8 years. We went to a presentation that ended up offering the Aviva / Annexus Balanced Allocation Annuity.

A friend of ours looked over the sales brochure and basically said run. I don't need the extra income today but I also don't know what to do with the deferred comp balance. It's split as follows:
Dodge & Cox Stock 16%
Fidelity Contrafund 22%
PIMCO Total Return 14%
Vanguard Cap Opportunity 10%
Vanguard Internat'l Growth 17%
Guaranteed Return (2.75% Return 2nd Qtr) 21%

So, is this a good option or should I run?
__________________

__________________
RealGomer is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-26-2012, 07:51 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,428
Why not just stay the course in the funds you cite above. I'm guessing that the annuity has significant fees associated with it.
__________________

__________________
pb4uski is online now   Reply With Quote
Old 08-26-2012, 07:53 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Run from this annuity. If for some reason you find the whole idea compelling, you can do it yourself in 15 minutes and for like 1/1000th of the cost. Details here: Life, Investments & Everything: Rolling Your Own
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 08-26-2012, 08:11 PM   #4
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,107
Run away. If you can't run, then walk away. If you can't walk, crawl away. If you can't crawl, beg someone to drag you away...
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 08-26-2012, 08:53 PM   #5
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,617
Quote:
Originally Posted by brewer12345 View Post
Run from this annuity.
Quote:
Originally Posted by REWahoo View Post
Run away. If you can't run, then walk away. If you can't walk, crawl away. If you can't crawl, beg someone to drag you away...
I'm sensing some ambivalence and uncertainty here. If you guys can't stop sugar-coating your wishy-washy advice and start telling the poster the way it really is, then maybe we should get some annuity sales staff in here to explain how this innovative, attractive, and affordable* product works...

* "Innovative, attractive, and affordable" for the annuity sales staff compensation plan.


I wish these prospectuses had better summaries in a 150-point font like:
.
.
Expected total return = 5%
Expense ratio = 3.5%
Your after-tax return = 1.1%
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 08-27-2012, 09:17 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
braumeister's Avatar
 
Join Date: Feb 2010
Location: Northern Kentucky
Posts: 8,601
My most basic rule of investing is to never put money in anything I don't completely understand. Since you started by having a friend look at the sales brochure (why did they give you a sales brochure instead of a detailed prospectus?), it's probably not immediately obvious what all the details are.

Just based on what you posted, I don't even understand this line:
Quote:
Guaranteed Return (2.75% Return 2nd Qtr) 21%
What does that mean?

Basically, SOME annuities can be good options for SOME people at SOME times.

Unless you're sure you and the annuity are in one of those groups, they are PROBABLY not good for you.
__________________

__________________
Pas de lieu Rhône que nous.
braumeister is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 04:46 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.