At least credit KRobby with truth in advertising. After all, the word "Rob" is prominently displayed on every post.
Thank you, brewer.
At least credit KRobby with truth in advertising. After all, the word "Rob" is prominently displayed on every post.
Like any product, the insurance company makes money on the deal or they wouldn't offer it. They commensate brokers that make it happen. Ins companies use their vast resources to earn a spread, if you can do the same, and diversify that risk, by all means do it.
Haaaahahahaha! Pull the other one: its got bells on.
If the agent and the insurer are eating well, there is really only one place that the meal is coming from: the [-]sucker's[/-] policyholder's plate. Don't kid us or yourself. As for the ridiculous supposition that insurers have fabulous investment opportunities unavailable to the rest of us, I invite you to look at the portfolios of the industry. They by and large own a giant pile of investment grade bonds, mostly corporates. You can own those via an ETF or mutual fund for under 25BP annually (probably a lot less). Considering the massive overhead, regulatory expenses, premium taxes and various other expenses insurers have but individuals do not, I think we can safely say that the DIYer has the edge.
Can you tell us about the vast resources the ins companies have and where they get them from?
Thank you, brewer.
Bond mutual funds are guaranteed? Clearly you're having a difficult time comparing apples to apples. You may be smart, and have excellent strategies that will help many people, but your common sense pertaining to what MANY PEOPLE actually want is disheartening. You think the average person can safely diversify an individual bond portfolio?
Money..more money, better deals.. it's pretty simple economics, banks do the same.
If it's so simple maybe you can explain it to me. Your answer is kind of funny.
Money..more money, better deals.. it's pretty simple economics, banks do the same.
You made this statement, I'm just asking you to make sense out of it.
Oh ok, well the General Accounting Office (GAO) did a rather extensive study on the matter to see what the difference is in trading between retail and institutional (ins. co. etc). They found retail traders are being overcharged by 2.5% on small trades, compared to institutional investors. "When a transaction does occur in the municipal bond market, institutions normally get a much better price than individual investors."
Wow, spin, spin, spin. Don't you get dizzy from all of that?
I get the first three, but what's the mule for (unless you're going to use it as food?) ...If you are worried about full faith and credit, you should be buying guns, ammo, MREs and a mule...(snip).
More like transportation for the ammo and MREs.I get the first three, but what's the mule for (unless you're going to use it as food?) ...
I get the first three, but what's the mule for (unless you're going to use it as food?) ...
He asked me twice to answer his question, so I did. And as directly and to the point as possible. Sorry you think it's such a conspiracy
KRobby, a simple concept that most here understand very well. Anytime you put a middleman between you and your investment(s), it is going to cost you money, restrictions, and even penalties. Oh and by the way, it is very easy for an individual to diversify any type of portfolio by doing just a little homework.
I think we are about done here, but I will leave you wil a parting thought, "Rob."
Life, Investments & Everything: The Limitations of Magic Factories
Why are you wasting your sales pitch on us?2. Diversifying does not equate to minimum guaranteed rate or protection from loss. Diversifying does not rescue you from loss. If diversification is able to meet your minimum risk tolerance, then GREAT, but it won't meet everybodys.
So you don't buy mutual funds either, all individual stocks and bonds?.......
I think you need to 'diversify' where you get your information. Too bad we're done, I was looking forward to more informative 'blogs'.
So you don't buy mutual funds either, all individual stocks and bonds?
(Are homebuilders a scam too?)
1. I understand that quite well, but not everybody has the economic opportunity to diversify their own individual security portfolio and obtain 50+ face value bonds etc.
2. Diversifying does not equate to minimum guaranteed rate or protection from loss. Diversifying does not rescue you from loss. If diversification is able to meet YOUR minimum risk tolerance, then GREAT, but it won't meet everybodys.
3. FIA's don't cost money. There's no sales charges or fees unless you elect a rider or bail out early.
Why are you wasting your sales pitch on us?
Haven't you figured out by now we aren't interested in funding your boat payment and no matter what chapter or verse of "Annuity Sales for Dummies" you quote, we ain't buying.