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Old 05-22-2020, 02:29 PM   #21
Confused about dryer sheets
 
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Yes they can make sense for a tax shelter but has some of the others have said understand the fees. Often times the income riders don't really add as much as value as it sounds. For example if they say there's a 6 or 7% guarantee the true IRR is often much less. I personally prefer an Fixed Indexed Annuity with 60% participation in the S&P500 with no cap,no fees, historical average is around 6-7% real return with no principal risk so I use that for a high quality fixed income replacement. A rated bonds are yielding 1% or so I see it as a good replacement, hope that helps!
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Old 05-22-2020, 02:34 PM   #22
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Yes they can make sense for a tax shelter but has some of the others have said understand the fees. Often times the income riders don't really add as much as value as it sounds. For example if they say there's a 6 or 7% guarantee the true IRR is often much less. I personally prefer an Fixed Indexed Annuity with 60% participation in the S&P500 with no cap,no fees, historical average is around 6-7% real return with no principal risk so I use that for a high quality fixed income replacement. A rated bonds are yielding 1% or so I see it as a good replacement, hope that helps!
Wow, hawking two of my least favorite products in one post and it is your first.

Spam alert!
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Old 05-22-2020, 02:34 PM   #23
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Originally Posted by Soccerman1bmw View Post
I personally prefer an Fixed Indexed Annuity with 60% participation in the S&P500 with no cap,no fees, historical average is around 6-7% real return with no principal risk so I use that for a high quality fixed income replacement. A rated bonds are yielding 1% or so I see it as a good replacement, hope that helps!
^ Looks like a live one!
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Old 05-22-2020, 02:42 PM   #24
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Yes they can make sense for a tax shelter but has some of the others have said understand the fees. Often times the income riders don't really add as much as value as it sounds. For example if they say there's a 6 or 7% guarantee the true IRR is often much less. I personally prefer an Fixed Indexed Annuity with 60% participation in the S&P500 with no cap,no fees, historical average is around 6-7% real return with no principal risk so I use that for a high quality fixed income replacement. A rated bonds are yielding 1% or so I see it as a good replacement, hope that helps!
Well, we needed some excitement for the start of the holiday weekend. It was getting pretty boring around here.
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Old 05-22-2020, 02:42 PM   #25
Confused about dryer sheets
 
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I got screwed on variable annuity's from my last advisor on those income riders, so just trying to help. What's a live one mean?
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Old 05-22-2020, 04:28 PM   #26
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What's a live one mean?
It is a reference to a mouse.

From "The History of Early-Retirement.org":

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... a protracted forum discussion of annuities often brings a flurry of new registrations from insurance professionals eager to extol the virtues of their particular version of that product, complete with less than subtle hints to send a PM for more information. The reception these new members receive from board members is reminiscent of watching cats entertain themselves with a captured mouse.
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Old 05-23-2020, 01:15 PM   #27
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This NY Times article casts some doubts on the value of TIAA variable annuities:

If You Bought In to TIAA Based on Reputation, Check Your Accounts
I've never heard anything but 'cons, not pros, about VAs OP.~
Additionally I'd consider this link belows information backing up REWahoos insights.

snip'
"TIAA has put a limited, short-term expense waiver in place to help prevent the CREF Money Market Account from having negative yields"

https://www.tiaa.org/public/land/mon...id=et_18841162
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Old 05-23-2020, 02:13 PM   #28
Confused about dryer sheets
 
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Nationwide has the lowest cost variable annuity. I think it's only 200 per year flat fee..

Thanks for calling me a mouse but I thought I brought up a point that nobody in the conversation had yet disccussed. It was in reference to the income riders scam which relevant because most variable annuities people buy they purchased with and because of thinking there really earning 6% guaranteed.
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Old 05-23-2020, 03:36 PM   #29
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There was a boggle head that had purchased in the early days of variable annuities and GLWB etc.. and stated that it worked out extremely well for them, but insurance companies continue to tighten down all these products to where it is hard to recommend some of them for anyone.
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Old 05-23-2020, 03:45 PM   #30
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Yes they can make sense for a tax shelter but has some of the others have said understand the fees. Often times the income riders don't really add as much as value as it sounds. For example if they say there's a 6 or 7% guarantee the true IRR is often much less. I personally prefer an Fixed Indexed Annuity with 60% participation in the S&P500 with no cap,no fees, historical average is around 6-7% real return with no principal risk so I use that for a high quality fixed income replacement. A rated bonds are yielding 1% or so I see it as a good replacement, hope that helps!
6-7% historic average....that must have been when Jimmy Carter was President....

With new policies FIAs average 0-3%, maybe 4-5% if extremely lucky over a 10 year period.
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Old 05-24-2020, 06:57 PM   #31
Confused about dryer sheets
 
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Take a look at the s&p500 index over the last 100 years without dividends then calculate 60% of the positive years and 0% during negative years.
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