|
|
04-15-2022, 03:25 PM
|
#21
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 7,723
|
One comment, "Sales People Maximize their Comp Plans". I just had an interview with my Credit Unions "Trusted" adviser. He tried really hard to sell me on Variable and Indexed Annuities when all I wanted to talk about was MYGAs, 'Nough said! I dumped him and called Stan the Annuity Man, he gave me the real Scoop. He is a really nice guy in person, even though I find him a little condescending towards the "Not so smart" Southern callers in his YouTube videos. He certainly is not like that when you chat to him in person. I will buy a significant MYGA laddered portfolio from him soon. When Powell and the fed finally get with the program and pull their fingers out that is.
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
04-16-2022, 09:54 AM
|
#22
|
Thinks s/he gets paid by the post
Join Date: Aug 2017
Location: Champaign
Posts: 4,729
|
Quote:
Originally Posted by ShokWaveRider
One comment, "Sales People Maximize their Comp Plans". I just had an interview with my Credit Unions "Trusted" adviser. He tried really hard to sell me on Variable and Indexed Annuities when all I wanted to talk about was MYGAs, 'Nough said! I dumped him and called Stan the Annuity Man, he gave me the real Scoop. He is a really nice guy in person, even though I find him a little condescending towards the "Not so smart" Southern callers in his YouTube videos. He certainly is not like that when you chat to him in person. I will buy a significant MYGA laddered portfolio from him soon. When Powell and the fed finally get with the program and pull their fingers out that is.
|
Is the expense high on MYGA's? I'll look up that YouTube about Annuity Man. We got burned years ago with an annuity and for some reason, anytime annuity is mentioned I get out my crucifix. Not really, I'm not religious. Maybe annuities have come a long way since then. I'll check into it.
__________________
"Do not go where the path may lead, go instead where there is no path and leave a trail."
Ralph Waldo Emerson
|
|
|
04-16-2022, 09:56 AM
|
#23
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 7,723
|
Quote:
Originally Posted by Rianne
Is the expense high on MYGA's? I'll look up that YouTube about Annuity Man. We got burned years ago with an annuity and for some reason, anytime annuity is mentioned I get out my crucifix. Not really, I'm not religious. Maybe annuities have come a long way since then. I'll check into it.
|
MYGA's are the exception. All Fees built in, just like a Bank or CU CD. Your state may even insure them like they do in Florida.
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
|
|
|
04-16-2022, 10:00 AM
|
#24
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,300
|
Quote:
Originally Posted by Rianne
Is the expense high on MYGA's? I'll look up that YouTube about Annuity Man. We got burned years ago with an annuity and for some reason, anytime annuity is mentioned I get out my crucifix. Not really, I'm not religious. Maybe annuities have come a long way since then. I'll check into it.
|
Effectively any fees are already booked into the price. So no further yearly maintenance fees or stand alone upfront fees.
The MYGA annuity is very different than these variable high fee annuities which folks get burned all the time.
One downside is the penalties for early withdrawal can be high, but if you use this investment as a substitute for a CD and hold to maturity, it can be effective as part of your Fixed Income holdings.
__________________
TGIM
|
|
|
04-16-2022, 11:13 AM
|
#25
|
Moderator Emeritus
Join Date: Apr 2011
Location: Conroe, Texas
Posts: 18,731
|
FED Funds rates (FFR) are going up to possibly 3% by years end (unless the FED caves in).
Here are some fixed income alternatives to bond funds which are losing NAV value:
Mentioned somewhat above:
MYGA's
Treasuries (1 year is about 1.8%, 2 year is about 2.2%, etc) - can be bought by the bond desk at VG, Schwab, Fidelity, etc. - or you could buy them directly at Treasury Direct.
CD rates are going up also.
Corporate and Municipal Bonds (individual) yields are getting more attractive but come with more risk than above.
Since FFR are going up, you can wait until later to plan purchases or build a ladder by buying each month.
A Golden Opportunity awaits us with the FFR increases.
__________________
*********Go Yankees!*********
|
|
|
04-16-2022, 01:02 PM
|
#26
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 17,930
|
Quote:
Originally Posted by aja8888
FED Funds rates (FFR) are going up to possibly 3% by years end (unless the FED caves in).
Here are some fixed income alternatives to bond funds which are losing NAV value:
Mentioned somewhat above:
MYGA's
Treasuries (1 year is about 1.8%, 2 year is about 2.2%, etc) - can be bought by the bond desk at VG, Schwab, Fidelity, etc. - or you could buy them directly at Treasury Direct.
CD rates are going up also.
Corporate and Municipal Bonds (individual) yields are getting more attractive but come with more risk than above.
Since FFR are going up, you can wait until later to plan purchases or build a ladder by buying each month.
A Golden Opportunity awaits us with the FFR increases.
|
I need some "schoolin'" on why we have a Golden Opportunity waiting when the FFR increases. I can see it driving all the fixed income rates higher, but until the increase in FFR "solves" the inflation problem, we won't be making more interest than we're losing in inflation and taxes on our gains (the way I see it.)
True enough, if you can snag 30 year bonds paying high interest, then AFTER we WHIP INFLATION NOW, we're golden. Some of us saw that back in the 80's.
What am I missing?
__________________
Ko'olau's Law -
Anything which can be used can be misused. Anything which can be misused will be.
|
|
|
04-16-2022, 04:39 PM
|
#27
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,300
|
Quote:
Originally Posted by Koolau
I need some "schoolin'" on why we have a Golden Opportunity waiting when the FFR increases. I can see it driving all the fixed income rates higher, but until the increase in FFR "solves" the inflation problem, we won't be making more interest than we're losing in inflation and taxes on our gains (the way I see it.)
True enough, if you can snag 30 year bonds paying high interest, then AFTER we WHIP INFLATION NOW, we're golden. Some of us saw that back in the 80's.
What am I missing?
|
Not missing anything, but perhaps there could be a lesser version of the 80's scenario, that the folks on this forum who are not into equities can profit from somewhat albeit not in true real terms.
__________________
TGIM
|
|
|
04-16-2022, 08:56 PM
|
#28
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2013
Posts: 9,358
|
Quote:
Originally Posted by aja8888
A Golden Opportunity awaits us with the FFR increases.
|
+1. I'm looking forward to rates going up, too. I've been playing with my spreadsheets, plugging in much higher rates and I like what I see, especially with the mortgage rate fixed.
__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
|
|
|
04-16-2022, 08:59 PM
|
#29
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2013
Posts: 9,358
|
Quote:
Originally Posted by Dtail
Not missing anything, but perhaps there could be a lesser version of the 80's scenario, that the folks on this forum who are not into equities can profit from somewhat albeit not in true real terms.
|
It is in true real terms if you own TIPS. The yield portions are all going up now. I'm looking forward to the chance of 2% or more real rates again, combined with an under 3% mortgage. Fun times ahead.
__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
|
|
|
04-17-2022, 07:44 AM
|
#30
|
Thinks s/he gets paid by the post
Join Date: Oct 2017
Location: Tellico Village
Posts: 2,622
|
Re-balancing from stocks to bonds, and then back to stocks as the market dictates has worked for decades. We are in a fairly short term span of both equities and bonds going down. Is it really time to give up and sell the loser in your portfolio? I thought buying more of the loser with money from the winner was the accepted practice. Equities and bonds are both still winners over the last decade.
__________________
Retired May 13th(Friday) 2016 at age 61.
|
|
|
04-19-2022, 04:00 PM
|
#32
|
Thinks s/he gets paid by the post
Join Date: Jul 2008
Location: Weatherford, Texas
Posts: 1,213
|
Quote:
Originally Posted by VanWinkle
Re-balancing from stocks to bonds, and then back to stocks as the market dictates has worked for decades. We are in a fairly short term span of both equities and bonds going down. Is it really time to give up and sell the loser in your portfolio? I thought buying more of the loser with money from the winner was the accepted practice. Equities and bonds are both still winners over the last decade.
|
Agreed. I wish I had sold my investment grade bond fund a year ago but I didn't..Seems to me like now is a good time to be getting in...My fund
https://investor.vanguard.com/mutual.../profile/VFIDX
that I've had for 20 years has done exactly what I wanted it to do in my portfolio...Now at these share prices it is yielding 3.62% and doing that with little risk..I'm betting the Fed doesn't even come close to raising rates enough to seriously adddress inflation..Government debt cannot stand it..IF the Fed stops raising rates at 3% or less my bond fund will be looking much better in a couple of years and I'll collect 3.61% along the way...If my thinking is wrong someone please tell me... Actually I don't really care too much if rates do continue to rise..As long as one is committed to long term seems to me that bonds can stil serve the same purpose they always have..
__________________
Life is good. Then you die.
|
|
|
04-19-2022, 04:48 PM
|
#33
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 17,930
|
Quote:
Originally Posted by Dtail
Not missing anything, but perhaps there could be a lesser version of the 80's scenario, that the folks on this forum who are not into equities can profit from somewhat albeit not in true real terms.
|
I thought about that. IF I had the time, I'd love to snag some of those long term CDs or 30 year treasuries at astronomical interest rates like back in the 80s. Once inflation was under control, those puppies were like gold (well, better than gold.)
Unfortunately, I'll not live to take advantage. Some times once-in-a-lifetime opportunities just come, well, one time in a lifetime. You young'uns be ready to pounce on those high interest rates when they return in a year or three. Imagine a 15% CD or Treasury when inflation has dropped back down to 4% or 5%. They could set you up for a long time along with your 60% or so equities. Naturally, there are no guarantees that history will repeat, so YMMV.
__________________
Ko'olau's Law -
Anything which can be used can be misused. Anything which can be misused will be.
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|