by GarySpicuzza » Wed Oct 08, 2008 10:08 am
Traditional Fixed Annuities and FIXED Indexed Annuities
AND
the value of NOT losing principal and what type of impossible stock market returns one would have to get to just stay even with a SAFE investment that's just limping along at 5% per year.
A couple of pictures are worth a few thousands words:
AND
the value of NOT losing principal and what type of impossible stock market returns one would have to get to just stay even with a SAFE investment that's just limping along at 5% per year.
A couple of pictures are worth a few thousands words:
Posted: Wed Oct 08, 2008 01:14 pm Post Subject:
A picture is worth a thousands words but I swear there is soo mch that goes along with the stock world that I would have to take classes at a beginners level.
Posted: Wed Oct 08, 2008 10:53 pm Post Subject:
fixed annuity isn't as good as an indexed annuity and doesn't have the income potential of a variable annuity but yes it is very safe
But sometimes safety costs you money on the other end
And in the end what would you rather have much more money or a little bit because you played it safe
Even though the stock market fluctuates rapidly it has stayed pretty consistent in the way of it will make it's combacks and when it does those people who didn't play it safe with a standard annuity are going to have some great retirements and a lot of money to pass on
Posted: Wed Oct 08, 2008 11:30 pm Post Subject:
Even though the stock market fluctuates rapidly it has stayed pretty consistent in the way of it will make it's combacks and when it does those people who didn't play it safe with a standard annuity are going to have some great retirements and a lot of money to pass on
sorry, but if they don't lose most or all of it by then...Posted: Thu Oct 09, 2008 10:05 am Post Subject:
FarmAHam wrote:
Even though the stock market fluctuates rapidly it has stayed pretty consistent in the way of it will make it's combacks and when it does those people who didn't play it safe with a standard annuity are going to have some great retirements and a lot of money to pass on
FarmAHam the stock market is a big boyz game. It's the big c a s i n o at the corner of Wall and Broad. If you're not the dealer, the numbers runner or the owner you're the loser, the playa, and you've just been played AGAIN.
Most people are exactly upside down when it comes to investing in stocks and mutual funds.
They're also not very good at math.
Baby Boomers who were approaching retirement age (62-65) will NEVER make back their losses of the past two weeks and this week is not over.
Stock broker wheeler dealers laugh in our face at the 2% or 3% minimum guranteed interest that's paid on fixed annuities and absurdly claim how that doesn't even keep up with inflation.
How well does a 25% to 37% loss of principal keep up with inflation?
A 25% loss of principal in one year will require a 47% gain the following year to just keep even with a SAFE investment that's just limping along at 5% per year.
Posted: Thu Oct 09, 2008 10:41 am Post Subject:
Gary, I think you put it well when you referred to it a s a gambling establishment. If a person was investing his/her 401k is there a way that any further money taken from their pay can be put into another area like fixed annuities or does it have to keep going into the selections you made/
Also is this a bad time to call a stock broker and change your plan? This stuff is soo confusing :roll:
Posted: Thu Oct 09, 2008 09:24 pm Post Subject:
fireyone,
A Fixed Annuity or FIXED Indexed Annuity is a place to put your money after you've made your money.
It is a SAFE money savings instrument.
As far as investing in an annuity most companies have a minimum premium of $10,000 some are as low as $5,000 and others are as high as $25,000 with higher interest and bonus paid on contracts with minimum premiums above $75,000.
So you can see it's not the type of financial instrument that you can put $25 per week into and doesn't lend itself very well within a 401k while you are saving the money. You transfer the money out of the market when you're tired of being played.
My hat's off to CNBC for their article:
Take Steps To Avoid Outliving Your Nest Egg
By Shelly K. Schwartz
Click HERE.
"The smartest thing an individual can do is buy an inflation indexed annuity that covers your basic living expenses,"
These contracts typically credit 6% to the Income Account Value regardless whether the market is up or down and regardless whether indexed interest is paid or not and the monthly payout is guaranteed based on age between 6% to 8% for the lifetime of the annuitant.
Posted: Fri Oct 10, 2008 02:04 am Post Subject:
Thanks for the link I am going to check it out. I don't think we have our money in the right place because in two weeks we lost almost $1000. Gonna have to call the stock agent and see what the best move is before we lose it all.
Posted: Fri Oct 10, 2008 09:03 am Post Subject:
fire, most 401k you can change both your contribution and the other money is and goes...and generally you can do this on line....personally as i've said we have all of ours contributions and what's in there in fixed/safe areas for now with this economy and market doing what it's doing...check out your web site for this...some of them charge you if you call and talk with a broker.
Posted: Fri Oct 10, 2008 05:30 pm Post Subject:
We really can't change the amount we contribute because in order for the company to match us we have to invest 5% of hubbys pay. It really adds up. I tried to understand all that stuff on the web site but it looks so confusing. I am afraid of making a wrong move. I know are stock isn't scattered between investments. A good three fourths are in 2035 retirement fund.
I will see if they charge but is that on top of the monthly charge we already pay I wonder?
Posted: Fri Oct 10, 2008 05:47 pm Post Subject:
Also, just to add a math perspective since I just went over this with my daughter because her company just implemented a 401k plan.
If you set aside $25 dollars per week and if your employer matches the $25, you just made 100% on your money. Now you have $50 dollars.
A great company benefit!
Now if you were invested 100% in a fixed saving instrument with no risk of loss even at 3% you would actually be making 6% on your money.
I'm talking about the money you have put in, your $25.00
6% of $25 dollars is $1.50
But you're in the fixed instrument that's only paying 3% with no risk of loss of principal. True, but your employer kicked in another $25.00.
3% of $50 dollars is $1.50
You made the $1.50 and on your money that equals 6%!
Now if I could absolutely guarantee you 6% growth on your money would you bother risking one penny with the day traders playing stocks like a flee market swap meet?
Of course not.
Most people DO NOT do what I've just laid out.
Understanding 4th grade math is essential to making money.
Add your comment