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-   -   MetLife wants your money........ (http://www.early-retirement.org/forums/f28/metlife-wants-your-money-40192.html)

FinanceDude 10-30-2008 09:33 AM

MetLife wants your money........
 
Latest fixed annuity rates from MetLife:

5 year - 5.80% for five years

7 year - 6.30% for 7 years

10 year - 6.75% for 10 years

MetLife is an A+ rated company.

Gsquared 10-30-2008 09:40 AM

How do these really work? Is the point of comparison versus CDs that you are you balancing a higher interest rate and State (less secure) insurance versus a lower interest rate and FDIC insurance for the CD?

Pros:
  • Guaranteed interest rate for XX years (like a CD)
  • Tax deferral on interest (If not taken as distribution)
Cons:
  • Money is tied up for XX years (Like a CD, except the next bullet)
  • More significant surrender charges versus CDs
  • Not FDIC insured, but (some) state insured to $XXX limit
What are the other differences?

Thanks!

FinanceDude 10-30-2008 09:45 AM

Quote:

Originally Posted by Gsquared (Post 739975)
How do these really work? Is the point of comparison versus CDs that you are you balancing a higher interest rate and State (less secure) insurance versus a lower interest rate and FDIC insurance for the CD?

Pros:
  • Guaranteed interest rate for XX years (like a CD)
  • Tax deferral on interest (If not taken as distribution)
Cons:
  • Money is tied up for XX years (Like a CD, except the next bullet)
  • More significant surrender charges versus CDs
  • Not FDIC insured, but (some) state insured to $XXX limit
What are the other differences?

Thanks!

If you do a fixed annuity with non-qualified dollars the tax deferral comes at a price, the price is that it now falls under the same rules as IRAs, wheras the CD has no such limitations on it.

Rich_by_the_Bay 10-30-2008 10:23 AM

Quote:

Originally Posted by FinanceDude (Post 739979)
If you do a fixed annuity with non-qualified dollars the tax deferral comes at a price, the price is that it now falls under the same rules as IRAs, wheras the CD has no such limitations on it.

FD, what would those rules be, assuming you are > 59.5 years of age? Is the deferred annuity interest treated as ordinary income?

Purron 10-30-2008 12:01 PM

I don't like the idea of annuities in general but must admit this is tempting considering our current environment.

FinanceDude 10-30-2008 12:19 PM

Quote:

Originally Posted by Rich_in_Tampa (Post 739990)
FD, what would those rules be, assuming you are > 59.5 years of age? Is the deferred annuity interest treated as ordinary income?

All deferred annuity interest comes out first, and is taxed as ordinary income. Principal returned is not taxed.........

ziggy29 10-30-2008 12:23 PM

I hope their annuities aren't as bad as their dental insurance. My employer stuck us with this clunker of a dental plan this year and they are simply horrible.

We now return you to your regularly-scheduled annuity discussion...

FinanceDude 10-30-2008 12:24 PM

Quote:

Originally Posted by ziggy29 (Post 740067)
I hope their annuities aren't as bad as their dental insurance. My employer stuck us with this clunker of a dental plan this year and they are simply horrible.

We now return you to your regularly-scheduled annuity discussion...

MetLife is not known for their dental insurance. I think because its cheap, your boss was thinking he was doing you a favor, but they hardly cover anything..........:p

ziggy29 10-30-2008 12:26 PM

Quote:

Originally Posted by FinanceDude (Post 740068)
MetLife is not known for their dental insurance. I think because its cheap, your boss was thinking he was doing you a favor, but they hardly cover anything..........:p

They're terrible. They fight you on every claim. My dentist says MetLife is the ONLY dental plan they don't accept as payment up front; they will file a claim for us (usually denied until we jump through a lot of hoops) but we have to pay in full up front and get reimbursed by insurance.

I've had more fighting with them this year than I had with all other dental insurers combined in all the rest of my life. I'm not inclined to willingly give them ANY of my business in any line of insurance offerings based on my experience with their dental plan.

Gardnr 10-30-2008 09:21 PM

Quote:

Originally Posted by ziggy29 (Post 740070)
They're terrible. They fight you on every claim. My dentist says MetLife is the ONLY dental plan they don't accept as payment up front; they will file a claim for us (usually denied until we jump through a lot of hoops) but we have to pay in full up front and get reimbursed by insurance.

I've had more fighting with them this year than I had with all other dental insurers combined in all the rest of my life. I'm not inclined to willingly give them ANY of my business in any line of insurance offerings based on my experience with their dental plan.

Hmmm. I'll keep that in mind, although I haven't experienced any problems yet. I've only had it since June (when I returned to United Airlines after long term military leave) and have only had a couple of claims; one fully covered exam/cleaning and one filling. I didn't get that kind of reaction from my dentist's office and they only charged me for the patient portion when I got the filling. Hopefully my luck continues with this. I won't have to deal with it for long anyway since I'll be gone from United in January (being laid off - furloughed, in the industry parlance - as expected).

Gearhead Jim 10-30-2008 09:45 PM

Quote:

Originally Posted by Gardnr (Post 740338)
...
I won't have to deal with it for long anyway since I'll be gone from United in January (being laid off - furloughed, in the industry parlance - as expected).

Howdy, sorry about the furlough.
Gearhead Jim, ORDFO retired 2005 and glad of it!

Gardnr 10-30-2008 11:33 PM

Quote:

Originally Posted by Gearhead Jim (Post 740350)
Howdy, sorry about the furlough.
Gearhead Jim, ORDFO retired 2005 and glad of it!

Yep, second time around and probably the last. I think I'm done with that career job. It's not what it used to be, as you well know. :mad:

It'll be years before I'm recalled anyway, and I don't think I'll be up to it, unless things have changed drastically, and I can't imagine that being the case.

Cheers

riskadverse 10-31-2008 06:11 AM

CORRECT: U.S. may extend bailout to insurers -- WSJ - MarketWatch

proceed cautiously

Dawg52 10-31-2008 07:26 AM

Quote:

Originally Posted by riskadverse (Post 740427)

A story in the online edition of The Wall Street Journal citing unnamed sources reported insurers interested in exploring the sale of stakes to the government include MetLife

Well I guess that tells you why they have such attractive rates. They really need your money.:-\

FinanceDude 10-31-2008 08:26 AM

Quote:

Originally Posted by Dawg54 (Post 740438)
A story in the online edition of The Wall Street Journal citing unnamed sources reported insurers interested in exploring the sale of stakes to the government include MetLife

Well I guess that tells you why they have such attractive rates. They really need your money.:-\

I talked to a couple higher ups I know at MetLife. It seems the Treasury's "deal" is capital at ridiculously low cost of borrowing, even lower than their own cost of borrowing, so they look at it as diversification in a sense. Maybe the US govt is now an "angel investor"........:o:D

Notmuchlonger 10-31-2008 11:45 AM

I don't like Metlife at all. The hassle of getting my wife's short term disability was awful. I will never use one of their products again if I can help it. Their customer service sucks.

youbet 10-31-2008 06:23 PM

Quote:

Originally Posted by Dawg54 (Post 740438)
Well I guess that tells you why they have such attractive rates. They really need your money.:-\

Ya know Dawg, I don't think it would be too far a stretch to say that whenever you're offered attractive rates, the offerer really needs your money. Or, at a minimum, really wants your money...... ;)

jazz4cash 10-31-2008 07:29 PM

Quote:

Originally Posted by ziggy29 (Post 740067)
I hope their annuities aren't as bad as their dental insurance. My employer stuck us with this clunker of a dental plan this year and they are simply horrible.

We now return you to your regularly-scheduled annuity discussion...


We had Metlife for many years and it was fine....various dental offices told us our coverage was really good. Employer switched from Metlife to Delta Dental and coverage was the same...no changes, so maybe it's the details of the plan chosen by your employer that makes it a clunker. We also have Metlife group life and they just lowered premiums 40%....no complaints from me.

jazz4cash 10-31-2008 07:30 PM

Anyone know why Metlife doesn't offer anything close to the 6.75% in Maryland?


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