Annuities? Have you been talking to someone who want to sell you something?

[aja8888]

Quote:

Originally Posted by Kimo This is one of the reasons I like the ones I bought......the Monthly income can only go up, it can never go down....and it is Wellington which has been around since the late 20's or early 30's....I am not losing sleep!

Wellington is a mutual fund, and it can go up and down.

[Kimo]

Quote:

Originally Posted by aja8888 Wellington is a mutual fund, and it can go up and down.

Yes, you are right, it is a mutual fund and it can go up or down, the beauty is it is guaranteed a certain percentage of income regardless of up or down (in the years I have owned it, it has only gone up)....heck, it can go to zero and I still get my payment.....of course we and the rest of the world would have bigger problems if every stock and bond in the Wellington fund went to zero....LOL

[Kimo]

PS. The percentage is a number (5%, depends on your age when you buy it) of total assets when you buy it, once a year it takes a snapshot to see if your monthly income stays the same or go's up.

[aja8888]

Quote:

Originally Posted by Kimo Yes, you are right, it is a mutual fund and it can go up or down, the beauty is it is guaranteed a certain percentage of income regardless of up or down (in the years I have owned it, it has only gone up)....heck, it can go to zero and I still get my payment.....of course we and the rest of the world would have bigger problems if every stock and bond in the Wellington fund went to zero....LOL

I don't think mutual funds guarantee any income, Wellington or otherwise.

[Kimo]

It is a Wellington clone sold through Vanguard/Wellington.

[Kimo]

As an Annuity

[haha]

Quote:

Originally Posted by Kimo It is a Wellington clone sold through Vanguard/Wellington.

If you can, please give a link.

Ha

[Kimo]

Quote:

Originally Posted by haha If you can, please give a link. Ha

Try this...


https://personal.vanguard.com/us/wha...drawal-benefit

[aja8888]

Quote:

Originally Posted by Kimo Try this... https://personal.vanguard.com/us/wha...drawal-benefit

That's just a link to the annuity page. Like I said in an earlier thread, Vanguard does not appear to sell them directly but uses a broker. Can you link us to the specific one you are talking about? Or just list the Insurance company and the product specifics?

[Kimo]

I did all my paperwork with Vanguard, there was never a broker named, my money went straight from my Vanguard account to a new Vanguard annuity account. I have looked through my paperwork (about as much as I can stand, reading that "stuff") and I can't find a broker referred to anywhere...

There is a place from that link to look at the holdings of the Balanced (Wellington) fund and then compare it to the Wellington fund. Because I own both it was much easier to compare on the Vanguard website, I just pulled my 2 accounts down and looked at the holdings.

I really don't think there is a broker though, wouldn't he/they want money and there isn't any to go around. My entire amount debited from my initial account was exactly the same in the annuity. The management fee is also identical.

[Kimo]

aja,

Here is a cut and paste from the Vanguard site:

If you're considering an annuity, we'll make it easy for you whether you purchase one directly from us or choose one from our partner insurance companies

I went directly through Vanguard.

[alaska55]

This what he's talking about.

Finally, a Variable Annuity Worth Considering-Kiplinger

[aja8888]

Quote:

Originally Posted by alaska55 This what he's talking about. Finally, a Variable Annuity Worth Considering-Kiplinger

Thanks.

[Kimo]

Thanks Alaska!!!

[REWahoo]

Quote:

Originally Posted by alaska55 This what he's talking about. Finally, a Variable Annuity Worth Considering-Kiplinger

Looks like the fees for the GLWB have gone up.

From the Kiplinger November 2011 article:

Quote:

The wrinkle that Vanguard has just added offers a guaranteed lifetime withdrawal benefit for an additional cost of 0.95% a year.

From the Vanguard link Kimo posted:

Quote:

You can add the GLWB rider to a Vanguard Variable Annuity anytime until age 90. You'll pay an annual fee equal to 1.20%...

Even with the additional 0.25% it is, as variable annuities go, a bargain - but not enough of a bargain to make me a buyer.

[Kimo]

They must have gone up, my total cost for the rider, the Wellington management expenses and the death benefit are 0.95% total.

Too bad it they did raise it, the ones I have with them treated me good....

[Kimo]

Maybe it is 1.20% for everything I said I was getting for 0.95%?

[haha]

Quote:

Originally Posted by REWahoo Looks like the fees for the GLWB have gone up. From the Kiplinger November 2011 article: From the Vanguard link Kimo posted: Even with the additional 0.25% it is, as variable annuities go, a bargain - but not enough of a bargain to make me a buyer.

There is an additional annual cost, as I remember .59 %.

Theses things give me a headache, I always feel that someone is trying to put one over on me. So I just say no.

Ha

[Kimo]

haha,
These are really pretty simple if you talk with them over the phone and then decide at a later date if it is for you or not. They never ask you if you are ready to purchase or give any sign of trying to get you to buy. If I remember correctly, he asked me if I really wanted to do this instead of just keeping my money in my current funds....my memory isn't as good as it used to be so I won't swear to this...LOL

[REWahoo]

Quote:

Originally Posted by Kimo They must have gone up, my total cost for the rider, the Wellington management expenses and the death benefit are 0.95% total.

I think you must be missing something. Did you include the ~0.60% expense ratio for the annuity itself? That would bring your total up to 1.55%, within the 1.45% - 1.55% cost range quoted in the 2011 Kiplinger article.