brewer12345
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Mar 6, 2003
- Messages
- 18,085
Okay, I am still honestly confused. I HAVE googled and read the annuity threads. That was why I asked, because nobody seemed to explain what the problem is, just "run"! Putting money in the stock market means you have to have MUCH more money because it may pay 0 in any given year, and you could also lose principal. And of course we have a significant amount in mutual funds. It still seems that the downside protection of the EIA is worth losing a hair off the upside. But thank you for your thoughts.
I personally do not understand the appeal, but if you like the idea of an EIA I would do it yourself rather than take credit exposure to a potentially shaky insurer and get locked into an inordinately expensive, very complex contract that hits you with a large early withdrawal penalty if you need the money sooner than the insurer tells you it is OK. If you search the forum, I took the trouble in a past post to explain in detail how you can "roll your own" EIA. With the high VIX, these strategies will be locking in a modest return at best.
Personally, I would just stick with a balanced, diversified portfolio and skip the option theatrics, but to each their own. Just take 5 minutes a year and save yourself the expense and credit exposure brought on by an EIA.