Annuity Opinions Needed

[Gail]

By the way, have you tried to ascertain the Insurance coverage in your state on this MetLife annuity?

We are covered for $100,000 per company. There are a couple of other companies offering rates close to MetLife and we are considering the idea of spreading the money between them.

We have received our information from Fidelity/MetLife and everything seems to be just as we were told. We are almost ready to pull the trigger!

 

[freebird5825]

MetLife fixed annuities listing...6.75 for 10 years seems like a great rate.

some historical data to use as a comparison...

July 2007
5.25 % interest, fixed immediate annuity (conversion of TSP via MetLife's contract with OPM)
Lifetime rate, single annuitant (no survivors)

if memory serves, market was relatively strong in July 2007.

again, i am not recommending annuities. just providing data.

 

[2B]

some historical data to use as a comparison...

July 2007
5.25 % interest, fixed immediate annuity (conversion of TSP via MetLife's contract with OPM)
Lifetime rate, single annuitant (no survivors)

if memory serves, market was relatively strong in July 2007.

again, i am not recommending annuities. just providing data.

What's different now is that the insurance companies are trying to recapitalize. They are assuming that giving good rates for immediate annuities is cheaper than going into the market place for funding. It also says they are in financial trouble. How much we don't know.

 

[OAG]

What's different now is that the insurance companies are trying to recapitalize. They are assuming that giving good rates for immediate annuities is cheaper than going into the market place for funding. It also says they are in financial trouble. How much we don't know.

Today the Hartford stock was down 60%. I wonder what that is all about. They are the company AARP uses (or pushes on their membership). I think you may be right but we will find out eventually, the problem it will probably be "after the fact" and earlier.

 

[Budman]

I am about to invest in the Metlife tax deferred annuity using the 10 yr @6.75% rate. My Fidelity Broker told me that there has been an overwhelming response to this rate and MetLife will reduce it next Wednesday. I hope to get in on Monday. I have had my home, auto, life ins with them for years, have had claims on auto, and have never had a problem. They were so easy to deal with. They are well rated by AM Best and S& P. I just do not think this is that big of a risk and certainly is a lesser risk than investing in individual investment grade corporate bonds. In addition, the State of Ohio covers insurance annuities up to $200M per depositer...so I'm told...I still need to verify that.

 

[OAG]

Ohio Department of Insurance Hot line: 1-800-686-1526.

 

[2B]

I am about to invest in the Metlife tax deferred annuity using the 10 yr @6.75% rate. My Fidelity Broker told me that there has been an overwhelming response to this rate and MetLife will reduce it next Wednesday. I hope to get in on Monday. I have had my home, auto, life ins with them for years, have had claims on auto, and have never had a problem. They were so easy to deal with. They are well rated by AM Best and S& P. I just do not think this is that big of a risk and certainly is a lesser risk than investing in individual investment grade corporate bonds. In addition, the State of Ohio covers insurance annuities up to $200M per depositer...so I'm told...I still need to verify that.

You can get much higher returns in AAA preferred stocks. The "guarantee" is the willingness of the Federal government to put cash into companies to prevent their failure. You can get the ETF for all preferred stocks by buying PFF. The yield is right at 9%.