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Old 09-23-2013, 04:11 PM   #81
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This is just repackaging AA, just like "buckets" was.
How is buying a CD and buying (or buying and selling) call options on an equity index "just repackaging" AA? What would the AA that is repackaged?
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Old 09-23-2013, 05:53 PM   #82
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Originally Posted by pb4uski View Post
How is buying a CD and buying (or buying and selling) call options on an equity index "just repackaging" AA? What would the AA that is repackaged?
The OP had a lot of CDs and some equities. It looked like a conservative AA to me, but repackaged and wrapped up as the concept of a DIY annuity. That repackaging reminds me of buckets.
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Annuities: tripwires and snares... again?
Old 09-29-2013, 02:28 AM   #83
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Annuities: tripwires and snares... again?

Thank you for welcoming me as a new member. I need some info re retirement annuities that I am having a hard time finding.

At least some annuities, Like Fidelity's for instance [NOT AN ACCUSATION], are written on insurance paper, and make it clear (though in rather fine print) that Fidelity is not responsible for the annuity if in the event of any financial failures on the part of underwriter. Fidelity also is (obviously) connected to the Fidelity Insurance Network.

This may sound like an idiot question, but the Fidelity annuity app, while letting itself off the hook, does not identify the underwriters. Are they Fid Ins Net companies? if not, who are they? Either way, how strong are they? This sounds too much like sub-prime lending.

Please don't think I am a troublemaker -- I am a fraidy cat. I have watched not only the sub prime deal, Lincoln Savings, the dot com balloon, the S&L scandal, and even the variable interest second mortgages of the 1980's. All depended on (ultimately unstable) secondary markets and/or steady interest rates (a legend from the 1960's) to do their thing.

In my view, disclosures left out of an ad for an instrument as potentially wonky yet absolutely vital as a modern annuity is often important information indeed. I have been there before and my retirement income is all I have left.

Please tell me if you know anything about this issue, and/or where I can find and document the informnation

Thanks again!

Tinsmith

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Old 09-29-2013, 06:35 AM   #84
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All annuities are issued by insurance companies.

There will be fine print telling you the insurance company that issues the annuity and you can then look up the financial strength rating of the issuer from A.M.Best & Company, Standards & Poors, Moody's and Fitch.

For example, the webpage for Fidelity's SPIA's indicate that they are issued by many different companies and provides the financial strength ratings from A.M. Best and S&P. A footnote indicates the specific insurance companies that issue the annuities:

Quote:
The Guardian Guaranteed Income Annuity IISM is issued by The Guardian Insurance & Annuity Company, Inc.; MassMutual RetireEaseSM is issued by Massachusetts Mutual Life Insurance Company; MetLife Income AnnuitySM is issued by MetLife Investors USA Insurance Company and in New York, by First MetLife Investors Insurance Company (collectively and singly, MetLife Investors); New York Life Guaranteed Lifetime Income Annuity II/New York Life Guaranteed Period Income Annuity II are issued by New York Life Insurance and Annuity Corporation (a Delaware Corporation), a wholly owned subsidiary of New York Life Insurance Company; Principal Income Annuity is issued by Principal Life Insurance Company.
See this link.
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