A High Income Strategy for a Retirement Portfolio

Quote from love2puck14:

Btw the 10% is calculated as simple interest... Not compounded. So they double your money "for income purposes only"
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"For income only" includes cannibalization of principle... BFD. You can have "50% income" if you don't mind wiping out your principle* in 2 years.

* The concept of "principle" is irrelevant once a contract is annuitized... all you get is the company's "unsecured promise to pay".

Annuites are (1) complex, and (2) slanted in value toward the company. Caveat Emptor!
 
Quote from Scataphagos:

A read over a few Google listings... looks like they're talking about "life only" annuity rates. That is, your income is guaranteed for "life", but if you die after the first payment, that's it. Not the same as "10% guaranteed return"..
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If you die, w/o a death benefit rider, you get the principal less withdrawals. With a death benefit rider, you'd be locking in higher achieved values during the lifetime of the contract. If so inclined, you can get around the death benefit rider by doing the shortest contracts (usually 3-4 years) and rolling the contract to another (or even back into the same, but a new one).

The VA's annual withdrawal amount is usually equal to the GRIP/GRIB (5-7%). AFAIK, if I needed income, I 'd take withdrawals until the sub account value was nearly depleted and then annuitize.
 
Quote from Scataphagos:

"For income only" includes cannibalization of principle... BFD. You can have "50% income" if you don't mind wiping out your principle* in 2 years.

* The concept of "principle" is irrelevant once a contract is annuitized... all you get is the company's "unsecured promise to pay".

Annuites are (1) complex, and (2) slanted in value toward the company. Caveat Emptor!
More...

As I previously stated: modern annuties don't annuitize! They have guaranteed withdrawal benefits (riders). Yes you eat principal or gains if you have any.

Yes the are complex. Yes they are profitable. Why else would they be sold??? But people love the idea of having a check that's "guaranteed" by a highly rated insurance company.
 
Quote from spindr0:

If you die, w/o a death benefit rider, you get the principal less withdrawals. With a death benefit rider, you'd be locking in higher achieved values during the lifetime of the contract. If so inclined, you can get around the death benefit rider by doing the shortest contracts (usually 3-4 years) and rolling the contract to another (or even back into the same, but a new one).

The VA's annual withdrawal amount is usually equal to the GRIP/GRIB (5-7%). AFAIK, if I needed income, I 'd take withdrawals until the sub account value was nearly depleted and then annuitize.
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Like I said, annuities are "complex". Your understanding needs to be better if you get serious money involved.
 
Quote from Free Thinker:

i understand it just fine. they use deceptive advertising to suck in customers who are looking for security and they nickle and dime them with fees while allowing no escape. he bought it against my advice.
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LOL. You clearly don't understand the product.
 
Quote from Scataphagos:

"For income only" includes cannibalization of principle... BFD. You can have "50% income" if you don't mind wiping out your principle* in 2 years.
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Wiping out your principal in two years? If you believe that then you also don't understand variable annuities.
 
Quote from love2puck14:

As I previously stated: modern annuties don't annuitize! They have guaranteed withdrawal benefits (riders). Yes you eat principal or gains if you have any.
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Ever get the feeling you're talking to someone with tunnel vision? :)

Since you're far more proficient at explaining the details than I, I'm going to leave it to you to argue with the misinformed.
 
Quote from spindr0:

LOL. You clearly don't understand the product.
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whats so difficult to understand. they market a 6% guarantee. then they charge 1% to manage it. but wait do you want your heirs to get a benefit if you die?that option will cost 1% more and on and on with fees, net result you recieve about 3% and you lost control of your money. why?


here is a similar product to what my friend bought. i dont remember all the exact details anymore it was 4 years ago. do some research and get back to me with your analysis:
http://www.axa.com/lib/en/uploads/presspresentation/2004/ny/AXA_Presse_200409_NY_Annuity.pdf
 
Quote from spindr0:

Wiping out your principal in two years? If you believe that then you also don't understand variable annuities.
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I've had them and invested in them for 20 years for clients... likely I understand them better than you.

Hint: "Whithdrawal" and "payment" are not the same as "return".
 
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