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02-21-2007, 10:26 AM
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#1 |
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Registered User
Join Date: Feb 2004
Posts: 72
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Annuities
Where can I find listings of good annuities? How do you choose the best one for your personal situation? What are the criteria for comparison?
Thank you for your input.
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Stockwell |
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02-22-2007, 04:35 PM
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#2 |
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Registered User
Join Date: Jul 2006
Location: somewhere in texas
Posts: 1,456
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stockwell, nice try man but that is a whopper of a question about what can be a complicated product. but sine i want to be helpful, the ONLY criteria i would use in determining the best one is ... you MUST understand it in complete detail!
1MO if you are looking for a place to start, look for annuities that have the HIGHEST rating - the number 1 spot - for strength and security. would seem a bit silly to place dollars that are important to you with a lesser company. |
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04-24-2007, 06:19 PM
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#3 | |
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Banned
Join Date: Apr 2007
Location: Clearwater, FL
Posts: 100
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Quote:
Stockwell, there is no such thing as "The Best" annuity. You didn't post anything about your personal situation so it's almost impossible to make any recommendations without knowing anything about your situation. That being said....ALL deferred annuities are, for all intents and purposes, identical. The predominate differences will be found in the method by which interest or gain in the contract will be credited and of course the surrender charge schedule. Of course that's an oversimplification. If you would like to post more about your situation and what you're trying to accomplish I'd be happy to respond. I have 22 years experience and have literally sold hundreds if not thousands of insurance contracts over the years. |
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04-24-2007, 07:32 PM
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#4 |
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Registered User
Join Date: Jul 2006
Location: somewhere in texas
Posts: 1,456
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gary, i read your post SEVERAL times in an attempt to agree with your statement ... yet i just cant. while i understand you caveated the statement that it may be "an oversimplification" i can't agree.
there are many many many inferiour products out there. there are a few CLEARLY superior products as well. here are SOME of the reasons that "prove" that for all intents and purposes, deferred annuities are NOT the same. 1. investment company options. some have very limited options while others have many. you COULD have a few but still offer sufficient opportunity for proper allocation, but you will of course agree that less in this case is PROBABLY inferiour. 2. the sponsoring company can make ALL the difference in the world. would you really place your monies with a BB rated company? 3. costs are not super important, but the pricing scheme CAN have a significant impact. there are some companies that charge ME on the premium amount only, not on the accumulation value. most charge on accumulation value. as far as costs go, this is SIGNIFICANT. i think there are a few other things that differentiate the contracts, but i would hope that i have made my point. by the way; gary, i stumbled upon your website several weeks ago and read your "rants" - for the most part i agreed with TONS of what you write and i appreciate your style. i hate to pick on you over this, but this was uncharacteristically naive.
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1MO disclaimer: "you didn't give me enough information to answer your question, so my answer might not be appropriate for you. in any case, don't take advice from me or anyone else on this board. it's not our life. it's not our money. you don't know who we are." "also, i am very arrogant. if your feelings were hurt in this message you probably need to get some thicker skin." buy cheap term: www.i'm_a_dufus_for_clicking_here.com Last edited by 1_more_opai : 04-24-2007 at 09:33 PM. |
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04-25-2007, 02:13 PM
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#5 |
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Banned
Join Date: Apr 2007
Location: Clearwater, FL
Posts: 100
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1_more_opai, thank you.
I'm glad you enjoy my "rants." I don't mind being picked on and yes, you are correct there are some pathetic annuity contracts out there. "The Best" annuity solution for Stockwell would be for him to visit Florida, set up an appointment with me and discuss his goals and objectives and see if I could point him in the right direction. I agree with your point about the issuing company. Financial strength is a huge deal with an annuity. Personally I like Aviva. They are the 5th largest insurance company in the world. The oldest (300 years) continuously operating insurance company in the world with assets over $712 Billion. $712,000,000,000 dollars is a lot of money! Again, I'm glad you enjoy reading my rants. |
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04-25-2007, 05:06 PM
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#6 |
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Registered User
Join Date: Jul 2006
Location: somewhere in texas
Posts: 1,456
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gary, i wasnt "picking" on you before but i will in this post. while it might be in YOUR best interest for stockwell to travel to florida, i dont think it would necessarily be in hers.
there are plenty of good companies and good advisors in her area. also, i have a personal anethema to soliciting on these forums ... even in jest. even if it is meant in jest or in the best possible intention, it can "appear" sleazy and our profession is (wrongly) perceived this way by too many in the lower income brackets already. p.s. i meant "rants" in the most positive way possible - clearly my postings would fall into the category of "rants" also - but positive rants!
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1MO disclaimer: "you didn't give me enough information to answer your question, so my answer might not be appropriate for you. in any case, don't take advice from me or anyone else on this board. it's not our life. it's not our money. you don't know who we are." "also, i am very arrogant. if your feelings were hurt in this message you probably need to get some thicker skin." buy cheap term: www.i'm_a_dufus_for_clicking_here.com |
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04-25-2007, 06:20 PM
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#7 |
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Registered User
Join Date: Sep 2005
Posts: 74
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I took a look at your site too Gary.
Please explain this sentence for me; "There isn't a better wealth protection and transfer investment vehicle than a Fixed Annuity." And this one in the forum area; "There is exactly one (1) negative feature in a Fixed Annuity contract. The SURRENDER charges." |
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04-25-2007, 08:55 PM
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#8 |
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Registered User
Join Date: Mar 2004
Location: New York
Posts: 1,357
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He is most likely talking about a structured payout across generations, or a reverse income payout to the donors/grantors with transfered principal now owned by the next generation or trust. Surrender charges wouldn't apply in this case. Nor would they apply if it was passed as death benefit.
Just taking a shot in the dark though... |
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04-26-2007, 08:00 AM
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#9 | ||
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Banned
Join Date: Apr 2007
Location: Clearwater, FL
Posts: 100
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Sturgbe wrote:
Quote:
Florida Statute 222.14 - Exemption of cash surrender value of life insurance policies and annuity contracts from legal process. The cash surrender values of life insurance policies issued upon the lives of citizens or residents of the state and the proceeds of annuity contracts issued to citizens or residents of the state, upon whatever form, shall not in any case be liable to attachment, garnishment or legal process in favor of any creditor of the person whose life is so insured or of any creditor of the person who is the beneficiary of such annuity contract, unless the insurance policy or annuity contract was effected for the benefit of such creditor. Quote:
[Rhetorical Response] What's the "other" negative features? [/Rhetorical Response] Certainly Lawsuit Protection, Probate Avoidance, Tax Deferred growth on interest earnings and Guaranteed Lifetime Income aren't negatives. If you can post what you perceive to be additional negative attributes to a Traditional Fixed Annuity or a Fixed Indexed Annuity I'll be happy to respond. |
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04-26-2007, 01:47 PM
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#10 |
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Registered User
Join Date: Sep 2005
Posts: 74
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Gary,
I feel life insurance can be a better transfer and wealth protecting vehicle than a fixed annuity. Annuities are subject to IRD and do not receive a step-up in basis as do other products. Life insurance is generally received income and estate tax free and also avoids probate. Annuities are great for accumulation but no so good for distribution when compared to life insurance. As far as my second comment. I might even argue that a surrender charge may not be a negative thing (unless it is way too long). It is what it is! Just like MVA on some annuity contracts...neither good or bad. Surrender charges can actually be a positive. It might help a cleint stay the course when fear or greed would otherwise dicate their decision making procees. Surrender charges are a key component in EIA's. For example; What is better for the cleint; buying 9 one-year puts or 1 nine-year put. The 1 nine-year put costs less and ultimately may provide for a better contract crediting. Surrender charges help make better contracts for consumers. Of course all products have risk (liquidity, market, inflation etc..) that can make a particular product unsuitable for some people. Some products in the same catagory are far superior than others. A fixed annuity may not have any negative features at all, just a certain risk. Where some may say a negative exsists, I prefer to say the glass if half full. |
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04-26-2007, 05:07 PM
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#11 |
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Registered User
Join Date: Mar 2004
Location: New York
Posts: 1,357
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For what it's worth, I tend to agree with Strugbe, There are many other preservation and transfer strategies that truly leverage your wealth and pass it in a more efficient manner. Fixed annuities aren't special enough to get excited about when it comes down to the nuts and bolts (and BRASS TAX).
There is some risk with fixed annuities and as mentioned, one is liquidity. The other, more insidious one, is inflation. |
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04-27-2007, 07:04 AM
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#12 | ||||
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Banned
Join Date: Apr 2007
Location: Clearwater, FL
Posts: 100
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Sturgbe wrote:
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That same person could NOT take advantage of the Life Insurance Estate Planning techniques available because of his health, even after a full miraculous recovery and a new prescription for vitimin V. Edit: Erectile Dysfunction, explosive flatulence and a new prescription for vitimin V.......is an attempt at humor. Last edited by GarySpicuzza : 04-27-2007 at 07:10 AM. |
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04-27-2007, 01:05 PM
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#13 |
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Registered User
Join Date: Sep 2005
Posts: 74
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Gary, I like your humor.
As far as qualifying for life insurance...well, you are right. If you can't get it, it won't do you much good. There are second to die policies that can remedy one unisurable client. We have insured A LOT of clients over 70 for insurance...A LOT! We have used annuities to fund life insurance. Primarily because annuities are not great investments to die with. " |
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04-27-2007, 01:27 PM
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#14 |
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Registered User
Join Date: Sep 2005
Posts: 74
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Gary,
I accidentily posted when I wasn't finished. Where was I...oh yes, you wrote; ""There isn't a better wealth protection and transfer investment vehicle than a Fixed Annuity." That must imply that the client doesn't qualify for life insurance. You forgot to mention that. If they do qualify for insurance, I think most professional would agree that life insurance is a far better transfer vehicle than any annuity. However, annuities coupled with life insurance can be a powerful waelth presever and transfer vehicle(s). IRD: Are you serious? Your site goes into great detail about estate planning. If you have any knowledge of estate planning, you would know what IRD is and how it effects particular assets and those inheriting these assets. Google IRD (Income in Respect of a Decedant) and then tell me if annuities are still great transfer vehicles. Note: IRD is kinda like IRS...they both take your money. Moving on. True, step up in basis does not apply to the cleint. It does apply to the person(s) receiving this (inherited) money. So again, annuities do not pass the test as the best transfer vehicle. Ordinary income rates and no stepped up basis are not good things for beneficiaries. Remember, you stated that there isn't a better "wealth protection and transfer vehicle". Just avoiding probate doesn't make annuites the best in these catagories. Note 2: I love annuities so don't think I am knocking this product. |
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04-27-2007, 01:29 PM
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#15 |
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Registered User
Join Date: Mar 2004
Location: New York
Posts: 1,357
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Also, in this day and age, ALMOST every type of asset class (with the exception of real estate) can be transferred by named beneficiary, thus avoiding probate. Like Sturgbe, I am not knocking annuities and I do like them in their place.
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