Role of Annuity For Savers Who have 20+ years until Retirement

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phrelo
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Role of Annuity For Savers Who have 20+ years until Retirement

Post by phrelo » Wed Jun 13, 2018 9:33 pm

Recently, an insurance agent recommended me Athene Ascent 10 Bonus 2.0 Fixed Indexed Annuity with option 1 (https://d2zhgehghqju...63f1bcca7e8.pdf ). His selling points are 1) the average return for stock market is going to be lower (~5%) than the last 9 bull market years with high volatility 2)bond market is not expected to be performed well given the rising interest environment 3) the return of annuity is guaranteed (10% simple interest rate for the first ten years, and a 5% simple interest rate for years 11 through 20.).

I do not know much about annuity. I would like to hear from the forum what are your opinions about this annuity for someone who has 20+ years until retirement and whether annuity can replace all or part of roles of bond portion of retirement portfolio in light of the current and future market condition.


Thanks,


Patrick H.

RickBoglehead
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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by RickBoglehead » Wed Jun 13, 2018 9:36 pm

He missed a point: "I get a huge commission check"...

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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by AlohaJoe » Wed Jun 13, 2018 9:41 pm

Did the insurance agent tell you how much money he will make if you buy that annuity from him?

Very few people on this forum are in favor of fixed index annuities. (That doesn't mean no one is; there are a few who use them but they generally don't speak up because of the general anti-annuity feeling on Bogleheads.)

In general do this: ask for the full annuity contract. Read every single page. Did you understand every single part of it? Are you willing to bet $50,000 that you understood it all?

123
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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by 123 » Wed Jun 13, 2018 9:44 pm

Instead of taking advantage of capital gains tax benefits in a taxable account you can buy the same things (more or less) in an annuity and pay regular income taxes on all your distributions that exceed your contribution to the annuity. You can easily double, or triple, your tax burden with an annuity.
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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by neilpilot » Wed Jun 13, 2018 9:48 pm

If you are serious about considering the annuity, determine the total percentage charged for insurance and all additional riders. This will likely be taken out of that guaranteed return percentage, leaving you with a much lower net return.

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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by AlphaLess » Wed Jun 13, 2018 9:52 pm

phrelo wrote:
Wed Jun 13, 2018 9:33 pm
Recently, an insurance agent recommended me Athene Ascent 10 Bonus 2.0 Fixed Indexed Annuity with option 1 (https://d2zhgehghqju...63f1bcca7e8.pdf ). His selling points are 1) the average return for stock market is going to be lower (~5%) than the last 9 bull market years with high volatility 2)bond market is not expected to be performed well given the rising interest environment 3) the return of annuity is guaranteed (10% simple interest rate for the first ten years, and a 5% simple interest rate for years 11 through 20.).

I do not know much about annuity. I would like to hear from the forum what are your opinions about this annuity for someone who has 20+ years until retirement and whether annuity can replace all or part of roles of bond portion of retirement portfolio in light of the current and future market condition.


Thanks,


Patrick H.
Taking a lot of insurance company risk which is not priced.

A lot of Asian investor - in 2008 - had bought essentially the same product underwritten by Lehman Brothers.

Principal should be protected, right?
But it was not.

Katietsu
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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by Katietsu » Wed Jun 13, 2018 10:23 pm

A co-worker talked about a Brighthouse annuity that he was considering. She cited an 8% guarantee for 6 years and no surrender charge at that point. While I was sure Brighthouse was not giving guaranteed money away, I did wonder where the catch was that this relatively savvy person surely must be overlooking.
Last edited by Katietsu on Sat Jun 16, 2018 10:12 am, edited 1 time in total.

bsteiner
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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by bsteiner » Wed Jun 13, 2018 10:28 pm

Katietsu wrote:
Wed Jun 13, 2018 10:23 pm
Out of curiosity, I do hope someone familiar with this type of product responds. Just last week, a co-worker talked about a Met Life annuity that he was considering. He cited an 8% guarantee for 6 years and no surrender charge at that point. While I was sure Met Life was not giving guaranteed money away, I did wonder where the catch was that this relatively savvy man surely must be overlooking.
Ask if that means that if he gives them a check for $100,000 now, they'll give him a check for $158,687 6 year from now.

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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by David Jay » Wed Jun 13, 2018 10:32 pm

phrelo wrote:
Wed Jun 13, 2018 9:33 pm
3) the return of annuity is guaranteed (10% simple interest rate for the first ten years, and a 5% simple interest rate for years 11 through 20.).
The “guaranteed rate” that is quoted is seldom (never?) an actual interest rate that you can actually withdraw at the end of the contract (see bsteiner's question for the insurance salesperson, immediately above). The guaranteed rates are normally “cost basis” which you only get if you annuitize at the end of the contract, which requires that you leave your money with the company forever. My sister purchased one of those after being led to believe that she was going to get “6%” return on her money. Nope!

What annuities do well is create an income stream in retirement. They are essentially never appropriate in the accumulation phase of your life.
Last edited by David Jay on Thu Jun 14, 2018 9:30 am, edited 2 times in total.
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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by AlohaJoe » Wed Jun 13, 2018 10:52 pm

Katietsu wrote:
Wed Jun 13, 2018 10:23 pm
Just last week, a co-worker talked about a Met Life annuity that he was considering. He cited an 8% guarantee for 6 years and no surrender charge at that point. While I was sure Met Life was not giving guaranteed money away, I did wonder where the catch was that this relatively savvy man surely must be overlooking.
It is pretty hard to talk about annuities in the abstract like this. Met Life has dozens of products, each with different variations. Especially since MetLife doesn't sell retail annuities anymore. Maybe he meant Brighthouse? Maybe he's talking about a Brighthouse Shield Level Select 6-Year Annuity?

You can read about it here: https://www.brighthousefinancialpro.com ... ield-rates

The prospectus is 76 pages. The Cap Rate is 8% but that's not the same as an 8% guarantee for 6 years. I don't see anything there saying they promise 8% for 6 years. They have limited downside protection (depending on the Shield level you choose anywhere from 10% to 25% downside protection). It also clearly lists the withdrawal charges which are 7% in the first year, 6% in the second year, etc.

Like I said before: you really ought to read the full contract/prospectus and decide for yourself.

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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by Katietsu » Wed Jun 13, 2018 10:57 pm

AlohaJoe wrote:
Wed Jun 13, 2018 10:52 pm
Katietsu wrote:
Wed Jun 13, 2018 10:23 pm
Just last week, a co-worker talked about a Met Life annuity that he was considering. He cited an 8% guarantee for 6 years and no surrender charge at that point. While I was sure Met Life was not giving guaranteed money away, I did wonder where the catch was that this relatively savvy man surely must be overlooking.
It is pretty hard to talk about annuities in the abstract like this. Met Life has dozens of products, each with different variations. Especially since MetLife doesn't sell retail annuities anymore. Maybe he meant Brighthouse? Maybe he's talking about a Brighthouse Shield Level Select 6-Year Annuity?

You can read about it here: https://www.brighthousefinancialpro.com ... ield-rates

The prospectus is 76 pages. The Cap Rate is 8% but that's not the same as an 8% guarantee for 6 years. I don't see anything there saying they promise 8% for 6 years. They have limited downside protection (depending on the Shield level you choose anywhere from 10% to 25% downside protection). It also clearly lists the withdrawal charges which are 7% in the first year, 6% in the second year, etc.

Like I said before: you really ought to read the full contract/prospectus and decide for yourself.
Thanks.
Last edited by Katietsu on Sat Jun 16, 2018 10:14 am, edited 1 time in total.

sco
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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by sco » Thu Jun 14, 2018 8:36 am

They through around a lot of terms and rates to make you believe that you can make some money. In reality you'd be better off just buying a decent fund and not spending the thousands on ongoing commissions.

You ever go to a vacation spot where they are selling a lot of timeshares? And then when you leave town there are numerous billboards about how you can get out of your timeshare contract?

Well, do some searching on this board and read about all the people 5, 10 or 20 years into their contracts trying to determine how to get out of them..

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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by NotWhoYouThink » Thu Jun 14, 2018 8:52 am

OP, you had another post yesterday about someone selling you an Indexed Universal Life policy to fund future college costs.

It is appropriate for you to be thinking about investment options, but it looks like you are talking to sales people who don't have your best interests at heart. Their job is to sell what their company sells, not to help you manage or grow your wealth.

Try starting all over. What do you have, what are your plans, what are your needs? This format helps. People on this forum will give you some useful advice and no one here gets paid whether you take it or not. Just a bunch of people helping each other. They have certainly helped me.

viewtopic.php?t=6212

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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by Grt2bOutdoors » Thu Jun 14, 2018 8:57 am

OP - Do you have a need for income TODAY? If not, DO NOT PASS GO!! The only annuity you should consider purchasing is when you need income, the name of that annuity is SINGLE PREMIUM IMMEDIATE ANNUITY (SPIA). If you are saving for retirement, the best vehicles are:

401K Plan
ROTH Ira
Traditional IRA
Taxable savings - using low cost, diversified, broad based index funds encompassing equity and fixed income funds.

Keep adding to your accounts, don't peek often, DUMP this Insurance Guy (he's no friend of yours), stick with it through thick and thin, the market will come back.
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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by ruralavalon » Thu Jun 14, 2018 9:45 am

phrelo wrote:
Wed Jun 13, 2018 9:33 pm
Recently, an insurance agent recommended me Athene Ascent 10 Bonus 2.0 Fixed Indexed Annuity with option 1 (https://d2zhgehghqju...63f1bcca7e8.pdf ). His selling points are 1) the average return for stock market is going to be lower (~5%) than the last 9 bull market years with high volatility 2)bond market is not expected to be performed well given the rising interest environment 3) the return of annuity is guaranteed (10% simple interest rate for the first ten years, and a 5% simple interest rate for years 11 through 20.).

I do not know much about annuity. I would like to hear from the forum what are your opinions about this annuity for someone who has 20+ years until retirement and whether annuity can replace all or part of roles of bond portion of retirement portfolio in light of the current and future market condition.


Thanks,


Patrick H.
A fixed index annuity is a horrible investment.

Don't do it.

Contribute to a work-based plan like a 401k 403b, 457, or TSP, if eligible contribute to an IRA at a low cost provider like Vanguard or Fidelity, invest in a taxable brokerage account buying low cost tax-efficient stock index funds.
Last edited by ruralavalon on Thu Jun 14, 2018 9:57 am, edited 1 time in total.
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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by cheese_breath » Thu Jun 14, 2018 9:52 am

Here's what FINRA has to say about it...

http://www.finra.org/investors/alerts/e ... lex-choice

Note: They don't call them Equity Indexed annuities anymore. They call them Fixed Index annuities now because too many people were learning about the bad points of EIAs. But it's really the same pig with different lipstick.
The surest way to know the future is when it becomes the past.

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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by David Jay » Thu Jun 14, 2018 9:54 am

cheese_breath wrote:
Thu Jun 14, 2018 9:52 am
Here's what FINRA has to say about it...

http://www.finra.org/investors/alerts/e ... lex-choice

Note: They don't call them Equity Indexed annuities anymore. They call them Fixed Index annuities now because too many people were learning about the bad points of EIAs. But it's really the same pig with different lipstick.
This is important. FINRA is the quasi-governmental organization that establishes standards for the financial services industry.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by Jack FFR1846 » Thu Jun 14, 2018 9:56 am

1) The annuity company buys Treasuries.
2) You get the return on Treasuries minus the fees.
3) All annuity salespeople lie all the time.
4) Nobody's getting any 8%. That's not even a lie....it's a damned lie.
5) If you're not yet 70, you shouldn't even be thinking about an annuity.
6) If you buy an annuity, the most important question to ask is "What color new BMW M4 are you buying with the commission you make on my policy?".
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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by HomerJ » Thu Jun 14, 2018 10:10 am

Katietsu wrote:
Wed Jun 13, 2018 10:23 pm
Out of curiosity, I do hope someone familiar with this type of product responds. Just last week, a co-worker talked about a Met Life annuity that he was considering. He cited an 8% guarantee for 6 years and no surrender charge at that point. While I was sure Met Life was not giving guaranteed money away, I did wonder where the catch was that this relatively savvy man surely must be overlooking.
The 8% number is a complete lie. It should absolutely be illegal for insurance companies to sell things this way.

The 8% "guaranteed" growth is NOT cash value. Your friend will not be able to withdraw $158,000 in 6 years. He will have a piece of paper that says "$158,000" on it in an "income account", and that will probably make him feel pretty good, but he will have to annuitize the annuity (at a lower rate than market rate) for that number to matter.

Let me explain with an example.

Say he invests the $100,000. In 6 years, he annuitizes the $158,000 at 4%, generating $6,320 a year in income. But on the open market he could buy a SPIA (single-premium immediate annuity) paying 5.5%. To generate $6,320 a year, he would only need $115,000.

So, in reality, your friend invests $100,000 for 6 years, and gets an annuity that would only normally cost $115,000... His $100,000 really only effectively grew to $115,000 over those 6 years, or 2.4% return.

So much for his "guaranteed" 8%.
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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by Nate79 » Thu Jun 14, 2018 10:14 am

phrelo wrote:
Wed Jun 13, 2018 9:33 pm
Recently, an insurance agent recommended me Athene Ascent 10 Bonus 2.0 Fixed Indexed Annuity with option 1 (https://d2zhgehghqju...63f1bcca7e8.pdf ). His selling points are 1) the average return for stock market is going to be lower (~5%) than the last 9 bull market years with high volatility 2)bond market is not expected to be performed well given the rising interest environment 3) the return of annuity is guaranteed (10% simple interest rate for the first ten years, and a 5% simple interest rate for years 11 through 20.).

I do not know much about annuity. I would like to hear from the forum what are your opinions about this annuity for someone who has 20+ years until retirement and whether annuity can replace all or part of roles of bond portion of retirement portfolio in light of the current and future market condition.


Thanks,


Patrick H.
This is usually solved by not talking to insurance salesman. At least you didn't call them a financial advisor as most people who come on here asking about these horrible products (and we have to correct them and say no, they are not a financial advisor, they are a salesman).

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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by David Jay » Thu Jun 14, 2018 11:39 am

Patrick:

If you ever intend to talk to this insurance salesperson again (I recommend against it), here is the only question I would ask. Stick with the exact words I use. If he changes the phrasing, go back to this phrasing. Do not let them sneak around the question. Stick with it:

If I give you my $100,000 [or whatever amount you choose] today, what amount does the annuity contract guarantee, in writing, that I can withdraw, free-and-clear, in 10 [or actual annuity term] years?

(hint: Most annuities guarantee between 87.5% and 90%, so the answer - if he ever answers it which is unlikely - will be perhaps $87,500. Maybe the full 100% - you get your nominal investment back less 5 years of inflation).
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by cheese_breath » Thu Jun 14, 2018 12:02 pm

cheese_breath wrote:
Thu Jun 14, 2018 9:52 am
Here's what FINRA has to say about it...

http://www.finra.org/investors/alerts/e ... lex-choice

Note: They don't call them Equity Indexed annuities anymore. They call them Fixed Index annuities now because too many people were learning about the bad points of EIAs. But it's really the same pig with different lipstick.
And here's what Fidelity says...

https://www.fidelity.com/viewpoints/ret ... &gclsrc=ds
The surest way to know the future is when it becomes the past.

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David Jay
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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by David Jay » Thu Jun 14, 2018 12:08 pm

And while we are piling on, there is this post: viewtopic.php?f=1&p=3586103#p3586103

This guy's mother put $200,000 into an SP500 index annuity and 5 years later (during which time the S&P total return was 80%) the cash value was $205,000.

[edit] To provide perspective for some future thread reader: If she had been in an SP500 index fund, her gain would have been about $160,000. The annuity’s fees, caps, participation ratios, no dividends, etc. turned a $160,000 gain into a $5,000 gain.
Last edited by David Jay on Thu Jun 14, 2018 9:33 pm, edited 2 times in total.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by sco » Thu Jun 14, 2018 5:18 pm

David Jay wrote:
Thu Jun 14, 2018 12:08 pm
And while we are piling on, there is this post: viewtopic.php?f=1&p=3586103#p3586103

This guy's mother put $200,000 into an SP500 index annuity and 5 years later (during which time the S&P total return was 80%) the cash value was $205,000.
I'm surprised she got that much back, in only 5 years.

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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by David Jay » Thu Jun 14, 2018 5:51 pm

sco wrote:
Thu Jun 14, 2018 5:18 pm
David Jay wrote:
Thu Jun 14, 2018 12:08 pm
And while we are piling on, there is this post: viewtopic.php?f=1&p=3586103#p3586103

This guy's mother put $200,000 into an SP500 index annuity and 5 years later (during which time the S&P total return was 80%) the cash value was $205,000.
I'm surprised she got that much back, in only 5 years.
That’s a (relatively cheap) active mutual fund ER level of return - about 50 basis points. :wink:
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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by Cyclesafe » Thu Jun 14, 2018 10:47 pm

I am probably the poster child for investment annuities. After I woke up to my particular scam, I 1035'ed to Vanguard for lower costs and the sympathy of the Vanguard rep who helped (along with members of this forum) ameliorate my situation. I annuitized one balance of about $550k for 10 years certain at 4%, which grosses me $65k/yr including $44k/yr that is taxable at full income tax rates. I have another much larger investment annuity that I am whittling down with withdrawals, tax bracket permitting, but I will never, ever recover its basis within my lifetime.

OP. Just run. RUN.

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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by Dr. Jack » Sun Jun 17, 2018 12:01 pm

So many comments and all of them wrong.
1) The one-time commission is 4% to 5% depending on age. Since the annuity is intended to produce a lifetime income, this typically works out to an equivalent charge of 0.20%-0.35% a year - much less expensive than any investment advisor fees.
2) The annuity is not intended to be annuitized, it guarantees a percentage of income that may be withdrawn each year, Any remaining balance may be withdrawn or is given to heirs. If all of the money is used up the insurance company keeps paying until the person dies - this protection is what the 1% annual fee is for.
3) Unlike target date funds or advisor guesses, this annuity guarantees a withdrawal rate for life of 4% to 7%, depending on when it begins. Unlike fund companies and advisors, the insurance company will continue to pay this guaranteed rate even if the market goes down and the account goes bust.
4) The 10% simple interest, etc. is not a return. It is a guarantee of future income growth (If your payout would have been $10,000 today and you wait a year it is guaranteed to $11,000, wait two years $12,000, and so)
5) Annuities are not a cure-all, simply the part of the portfolio that provides stable income in retirement. One would also own investments for growth.
6). No, I don't sell annuities nor do I work for an insurance company or agency. I simply try to educate.

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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by David Jay » Sun Jun 17, 2018 2:28 pm

Dr. Jack wrote:
Sun Jun 17, 2018 12:01 pm
I simply try to educate.
:shock:
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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by Dottie57 » Sun Jun 17, 2018 3:39 pm

Dr. Jack wrote:
Sun Jun 17, 2018 12:01 pm
So many comments and all of them wrong.
1) The one-time commission is 4% to 5% depending on age. Since the annuity is intended to produce a lifetime income, this typically works out to an equivalent charge of 0.20%-0.35% a year - much less expensive than any investment advisor fees.
2) The annuity is not intended to be annuitized, it guarantees a percentage of income that may be withdrawn each year, Any remaining balance may be withdrawn or is given to heirs. If all of the money is used up the insurance company keeps paying until the person dies - this protection is what the 1% annual fee is for.
3) Unlike target date funds or advisor guesses, this annuity guarantees a withdrawal rate for life of 4% to 7%, depending on when it begins. Unlike fund companies and advisors, the insurance company will continue to pay this guaranteed rate even if the market goes down and the account goes bust.
4) The 10% simple interest, etc. is not a return. It is a guarantee of future income growth (If your payout would have been $10,000 today and you wait a year it is guaranteed to $11,000, wait two years $12,000, and so)
5) Annuities are not a cure-all, simply the part of the portfolio that provides stable income in retirement. One would also own investments for growth.
6). No, I don't sell annuities nor do I work for an insurance company or agency. I simply try to educate.
Do purchasers receive a statement each year of the state of their annuity? annual fee should be shown.
Will the first years statement show the commission being taken?

I am looking for information about the clarity and transparency of a purchase of this kind of annuity.
Last edited by Dottie57 on Sun Jun 17, 2018 4:03 pm, edited 1 time in total.

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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by Nate79 » Sun Jun 17, 2018 3:47 pm

The fixed index annuity is one of the most toxic products out there sold by the insurance industry (even worse than UL and WL junk). Do not be detracted by the salesman lies and exaggerations.

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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by Danniella » Sun Jun 17, 2018 4:39 pm

RickBoglehead wrote:
Wed Jun 13, 2018 9:36 pm
He missed a point: "I get a huge commission check"...
First of all I need a like button! secondly, are american advisers obligated by law to inform about a potential commission when advising?
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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by David Jay » Sun Jun 17, 2018 8:53 pm

Danniella wrote:
Sun Jun 17, 2018 4:39 pm
RickBoglehead wrote:
Wed Jun 13, 2018 9:36 pm
He missed a point: "I get a huge commission check"...
First of all I need a like button! secondly, are american advisers obligated by law to inform about a potential commission when advising?
No. In fact many insurance agency employment contracts have specific clauses requiring that the agent NOT share how much they are paid on the sale.
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Re: Role of Annuity For Savers Who have 20+ years until Retirement

Post by David Jay » Sun Jun 17, 2018 9:05 pm

Dr. Jack wrote:
Sun Jun 17, 2018 12:01 pm
So many comments and all of them wrong.
1) The one-time commission is 4% to 5% depending on age. Since the annuity is intended to produce a lifetime income, this typically works out to an equivalent charge of 0.20%-0.35% a year - much less expensive than any investment advisor fees.
2) The annuity is not intended to be annuitized, it guarantees a percentage of income that may be withdrawn each year, Any remaining balance may be withdrawn or is given to heirs. If all of the money is used up the insurance company keeps paying until the person dies - this protection is what the 1% annual fee is for.
3) Unlike target date funds or advisor guesses, this annuity guarantees a withdrawal rate for life of 4% to 7%, depending on when it begins. Unlike fund companies and advisors, the insurance company will continue to pay this guaranteed rate even if the market goes down and the account goes bust.
4) The 10% simple interest, etc. is not a return. It is a guarantee of future income growth (If your payout would have been $10,000 today and you wait a year it is guaranteed to $11,000, wait two years $12,000, and so)
5) Annuities are not a cure-all, simply the part of the portfolio that provides stable income in retirement. One would also own investments for growth.
6). No, I don't sell annuities nor do I work for an insurance company or agency. I simply try to educate.
Initially I wasn’t going to engage with you on this, but I decided to ask one question based on your points (which all seem to be geared to topics like percentage of income, guaranteed withdrawal rates and stability of income.

Did you read the title of the thread? The question asked was whether or not a fixed-index annuity has a role as an investment vehicle for someone who has another 20 years of accumulation before taking withdrawals. Note that the named product has a 10-year term.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

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