Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Fixed Index Annuities
Old 04-03-2011, 08:41 AM   #1
Recycles dryer sheets
 
Join Date: Sep 2004
Posts: 330
Fixed Index Annuities

Does anyone have "the skinny" on fixed index annuities ? I shudder to ask my financial advisor for obvious reasons. Are their any up-sides. A financial talk sow was talking this morning about them as the best thing since the invention of sliced bread and with NO downside risk. This last statement immediately raised my scam financial planning antenna.

Any thoughts / opinions (constructive)
ferco is offline   Reply With Quote
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!

Old 04-03-2011, 09:21 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
Considered a dirty word around here.

Here you go:

http://www.early-retirement.org/foru...ity-53954.html
http://www.early-retirement.org/foru...eed-53618.html
http://www.early-retirement.org/foru...urn-48973.html

Read it and run like h3ll before angry mob shows up
chinaco is offline   Reply With Quote
Old 04-03-2011, 09:29 AM   #3
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
Quote:
Originally Posted by ferco View Post
I shudder to ask my financial advisor for obvious reasons.
Maybe it's time to find a new financial advisor?
__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Old 04-03-2011, 10:03 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Mar 2003
Posts: 18,085
Ugh, here we go again.

These things are complex, have lots of hidden expenses, and are mostly sold by the "iffier" insurers. If you dig around the forum I have explained how to DIY with less cost, more transparency, and a whole lot more flexibility.
__________________
"All animals are equal, but some animals are more equal than others."

- George Orwell

Ezekiel 23:20
brewer12345 is offline   Reply With Quote
Old 04-03-2011, 03:14 PM   #5
Full time employment: Posting here.
 
Join Date: Nov 2009
Location: VA
Posts: 923
These posts always turn out the same, so I'll just leave it alone this time. I think there's some of my posts in the threads referenced above.
__________________
Disclaimer - I am an independent insurance agent. If the above message contains insurance-related content, it is NOT intended as advice, and may not be accurate, applicable or sufficient depending on specific circumstances. Don't rely on it for any purpose. I do encourage you to consult an independent agent for insurance-related advice if you have a question that is specific in nature.
dgoldenz is offline   Reply With Quote
Old 04-03-2011, 04:56 PM   #6
Moderator
braumeister's Avatar
 
Join Date: Feb 2010
Location: Flyover country
Posts: 25,199
OK, I'll take a stab at it. Here's my answer:

1. Read every word of the fine print, and assure yourself that you completely understand it.

2. Follow Rich_in_Tampa's advice above.

3. Ask the seller all the questions you can think of that weren't covered by that fine print you read. Be sure your questions are answered fully.

At that point, you will either know enough to make the right decision for you, or you might have the insight to know the right additional questions to start asking. These things are complicated, they're never "one size fits all" and you have to do a lot of homework before you can determine if one is right FOR YOU.
__________________
I thought growing old would take longer.
braumeister is offline   Reply With Quote
Old 04-03-2011, 08:25 PM   #7
Thinks s/he gets paid by the post
 
Join Date: Oct 2006
Posts: 4,629
Read Brewer's posts on how to DIY. Or use this approach:

I assume "no downside risk" means you can't lose nominal dollars. Suppose you have $10,000 to invest.

1) Buy a 10 year treasury strip, they were trading around 70 last week. U.S. Treasury Strips - Markets Data Center - WSJ.com so you put $7,000 into a bond that will be worth $10,000 10 years from now.

2) The remaining $3,000 goes into Vanguard's Index 500 fund.

3) After 10 years, you have a guaranteed $10,000 plus something. The "plus" part will be larger or smaller depending on what the Vanguard fund does, but it won't be negative.

You will have a hard time finding an indexed annuity that can compete with that simple portfolio.
Independent is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Fixed Annuities 2005NWretiree FIRE and Money 9 07-22-2009 09:03 AM
Reporter's Guide To Fixed Annuities GarySpicuzza FIRE and Money 42 04-18-2008 09:32 AM
Equity Index Annuities at_last Other topics 3 12-16-2004 03:10 PM
Immediate fixed income annuities Bill J. FIRE and Money 9 07-19-2004 02:50 AM
Annuities-Variable? Fixed? Immediate jackalope FIRE and Money 6 10-01-2003 04:36 AM

» Quick Links

 
All times are GMT -6. The time now is 11:24 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.