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Wow..BIG Annuity Numbers..........
Old 03-14-2012, 01:20 PM   #1
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Wow..BIG Annuity Numbers..........

AnnuityNews - Income, Indexed Annuities Set Records In 4Q 2011
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Old 03-14-2012, 01:28 PM   #2
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The environment for income annuities is horrible because of the interest rate situation, but maybe some people are so desperate for something resembling a pension that they are paying record-high prices for any guaranteed lifetime income stream they can find.

I wonder how many of the people who bought the immediate income annuities like SPIAs are already collecting Social Security and aren't yet 70...
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Old 03-14-2012, 01:40 PM   #3
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Man, I don't want to be left out. I'm gonna run out today and buy me one of them things.

You know, one of the ones with 100 pages of disclosure that I don't understand, gotta have it.
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Old 03-14-2012, 01:44 PM   #4
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I wonder how many of the people who bought the immediate income annuities like SPIAs are already collecting Social Security and aren't yet 70...
Not us ...

Our SPIA is the reason that we can delay filing for SS and have three life income streams - two of which are COLA'ed, without the long-term risk of depending just on our investments to meet our retirement income needs.

Could not have done that without the SPIA to provide peace of mind.
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Old 03-14-2012, 01:59 PM   #5
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Man, I don't want to be left out. I'm gonna run out today and buy me one of them things.

You know, one of the ones with 100 pages of disclosure that I don't understand, gotta have it.
Buy one? I want to run out and sell a whole lot of these. Wonder if insurance companies will retrain oldsters?

Just because we do not like these annuities does not mean people should not be able to buy them. After all, they can buy cigarettes and booze can't they? At least index annuities do not kill innocent people trying to drive to work.

If people trade money for these things, it only means that they were never intended to be the rightful, long term custodians of that money. Financial product salepeople are only trying to reverse entropy, always a difficult and admirable undertaking.

Sometimes it is unclear who the good guys are.

Ha
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Old 03-14-2012, 05:24 PM   #6
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Originally Posted by ziggy29 View Post
The environment for income annuities is horrible because of the interest rate situation, but maybe some people are so desperate for something resembling a pension that they are paying record-high prices for any guaranteed lifetime income stream they can find.

I wonder how many of the people who bought the immediate income annuities like SPIAs are already collecting Social Security and aren't yet 70...
Keep in mind that the primary reason for buying an annuity is to reduce longevity risk. If you wanted income you would buy something that yields more. Annuities are a bit like negative life insurance. Nobody thinks about interest rates when they buy life insurance. I know the analogy isn't perfect but the emphasis on income is misplaced IMHO.
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Old 03-14-2012, 05:37 PM   #7
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Buy one? I want to run out and sell a whole lot of these. Wonder if insurance companies will retrain oldsters?

Just because we do not like these annuities does not mean people should not be able to buy them. After all, they can buy cigarettes and booze can't they? At least index annuities do not kill innocent people trying to drive to work.

If people trade money for these things, it only means that they were never intended to be the rightful, long term custodians of that money. Financial product salepeople are only trying to reverse entropy, always a difficult and admirable undertaking.

Sometimes it is unclear who the good guys are.
I would think that Ins. companies would love to hire someone of our age. They won't have to pay residuals for too long.

I think they are capable of killing someone if they ever figure out what they bought.

In my case I'm too dumb to figure these things out so I'll pass.

Ha[/QUOTE]
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Old 03-15-2012, 10:13 AM   #8
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The environment for income annuities is horrible because of the interest rate situation, but maybe some people are so desperate for something resembling a pension that they are paying record-high prices for any guaranteed lifetime income stream they can find.
+1.

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Old 03-15-2012, 12:31 PM   #9
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"Record high" may be accurate, but let's look at the numbers.

According to the article, income annuity sales were $2.2 billion in the 4th quarter.
During that same quarter, 630,000 people turned 65. Baby Boomer Insights: Boomers reach new milestone: the oldest turn 65, and redefine retirement
If all the SPIA sales were concentrated on just that group, that works out to about $3,500 per person.

I'd be interested to know how much of the deferred annuity money went into contracts with guaranteed lifetime withdrawal benefits. I'm guessing that's a bigger number.
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Old 03-15-2012, 01:01 PM   #10
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. Buy one? I want to run out and sell a whole lot of these. Wonder if insurance companies will retrain oldsters?
The more I'm learning the more I want to start a second career selling funds...

... Unfortunately I have these things called ethics.
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Old 03-15-2012, 05:04 PM   #11
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PETA alert...Double PETA alert!!!
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Old 03-17-2012, 06:50 PM   #12
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PETA alert...Double PETA alert!!!
Yea, that horse doesn't look dead to me either.
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