From 3 strategies to guarantee income in retirement - Sep. 21, 2009 This is the way to make a
variable annuity work - just have 150%!
variable annuity work - just have 150%!
Even investing 100% in annuities and the other 50% in stocks and bonds you only have a 92% chance...
Uh... Ziggy. Re-read the thread (especially the arithmetic) with your sarcasm radar turned up a notch .Why would someone conclude the variable annuity works when you can increase the chances of success from 92% to 99% by replacing it with an immediate annuity?
I have some reservations about these calculations, but even if I accept them at face value, it seems like all this is doing is telling us that an immediate annuity is better than a VA. And it doesn't account for the chance of an insurer to fail and it doesn't account for people who want to preserve capital to pass to their heirs.
Even investing 100% in annuities and the other 50% in stocks and bonds you only have a 92% chance...
Why would someone conclude the variable annuity works when you can increase the chances of success from 92% to 99% by replacing it with an immediate annuity?
"I'll go broke eight times as often, but look at how much more money I'll have!"*You need more income than Social Security and pensions will provide, but you want access to more of your savings than Strategy 2 allows.
150% of the people who make these math errors suffer a 200% loss of credibility... 92% of the time.I have some reservations about these calculations...
It's not the sarcasm radar -- it's the early morning lack of coffee.Uh... Ziggy. Re-read the thread (especially the arithmetic) with your sarcasm radar turned up a notch .
Immediate annuities right now only pay 4-5 % not 8%. Big difference. I just checked last month for a joint IA for wife & myself.
That graphic is hilarious, Mysto--good catch! And several hours later, the 150% portfolio is still on the CNN website.
If this thread tracks with history a swarm of professional annuity salespersons will be along shortly to show us the error of our cynical thinking.Cynics. I read the literature and with the variable annuity you do get an extra 50% so there is no math error.
banana cream and lemon meringue, please.Mysto - Many thanks for revealing the secret of making 100% --> 150%. All I have to do is make a pie-chart with four sections!
I'm going to get to work on it right away. I'm gonna make one apple, one cherry, one...
And I notified them right after I posted. But remember, CNN the most trusted...
If this thread tracks with history a swarm of professional annuity salespersons will be along shortly to show us the error of our cynical thinking.
It is time to reissue my invitation to partake of my Faith-Based Investments--give your money to me and pray you get it back.