recently started one. For weeks before signing I analyzed it word for word, continuously emailed back and for work my brokers long lists of questions that were answered very clearly and also made up a few scenarios to confirm I understood and to also get a response of my scenario to be sure I understand every
recently started one. For weeks before signing I analyzed it word for word, continuously emailed back and for work my brokers long lists of questions that were answered very clearly and also made up a few scenarios to confirm I understood and to also get a response of my scenario to be sure I understand every possibility I could some up with/
Now I hear people complaining because they didn't understand something (things that seem obvious after actually spending time reading and confirming) and it almost makes me laugh. They act as if they company pulled something on them when it's all there in ink. There's no deadline and you can ask as many questions as you want for years.
What do you think? Do you really feel people are tricked into something and literally lied to about these, or just ignorant and basically too dumb to actually read everything and confirm?
Complainers are complainers, regardless of the topic.
All investments have strengths and drawbacks. Annuities have a long list of both and the decision to invest in one is based on one's goals and willingness to make tradeoffs.
When I started looking at variables, I did as you did, bouncing multiple scenarios off of my agent. One thing is for sure, the numbers on the printouts do not lie. I spent a year determining if they they had a place in my retirement planning. I felt that they did since I wanted a certain amount of guaranteed income stream until death. I have been satisfied with the performance of them over the past decade.
Over the years, I have taken an active approach with them. In earlier years, after the expiration of the surrender charge (usually 3 years), I rolled some into higher yielding ones. In January of 2008, I moved two of them into cash, avoiding the bulk of that 57% decline in the market. About 6 years ago I picked one up from Pac Life (no longer offered) that offered a guaranteed 10% GRIP for 10 years (aka GRUB, GMIN and other acronyms depending on the company). I even found one at Metlife than pays 3% on cash when not invested in sub accounts and have used that mainly for stashing cash in the recent years of ZIRP.
While I took very few riders to minimize drag, I realize that this money would have yielded more had I put it in the market. However, this portion of my pie is geared toward income. Were I to start collecting that stream, the yield until death would currently be about 10.5% and that percent will continue to increase until I start drawing on it. I could take the present 40+ pct portfolio appreciation but that would be self defeating since this was a choice for guaranteed income not market gains. It has served its purpose as one of the building blocks of my retirement, regardless of the drawbacks of the vehicle.
Annuities are just what they are….if you are in your 60's already, and do not expect to live to your 90's, and have not really saved as much as you should have to live on, they are great for generating an income stream you cannot outlive….
But otherwise they are a scam.
The easy way to TELL is that they pay the highest commission to the person who SELLS them out of any financial instrument (because they make the underwriter by FAR the greatest amount of profit…..simply by preying on the fears of the innumerate!)
It's like a car lease, many moving parts that most don't comprehend. An annuity isn't a bad thing, properly utilized.
Complaint are made by the user who mistakes during their annuity time.since every company or process have both positive and negative point.But the probability of negativity is vesry less than positivity.so, any proces or cannot be considered as fake by watching some complaints about the company.