topic Re: Annuities Question in Community Chat

Annuities Question

Mmsfoxxie — Tue, 26 Apr 2016 00:45:28 GMT

Never thought I'd have a financial advisor but since I've retired I've been told that my fixed annuity needs to be changed. An Indexed Annuity has been suggested but I never heard of it before. I've been researching and I t seems safe but the money has to sit for 7 years to not be penalized. The advisor said that if it doesn't grow, it won't lose either.

Does anyone have an Indexed Annuity and if so, how do you feel about it. At 68, I might need to use funds before the 7 years are up. I'm thinking about leaving well enough alone.

Re: Annuities Question

Kachina624 — Tue, 26 Apr 2016 00:57:05 GMT

I know financial advisors can be intimidating but you really need to speak with an expert who can evaluate your entire financial situation. A shopping channel board is not the place to do this. I am very comfortable with my Edward Jones advisor right in my neighborhood. There are many licensed companies available...call and make an appointment.

Re: Annuities Question

tansy — Tue, 26 Apr 2016 00:57:27 GMT

Your financial advisor would probably benefit financially (receive a commission) for selling you this annuity. Not to be a pessimist but I wouldn't want my money tied up for 7 years if I were 68.

I don't think anyone here can advise you well without knowing more details. You want to see a fee-only financial advisor.

Re: Annuities Question

Kadilac — Tue, 26 Apr 2016 00:57:42 GMT

If you feel you are going to need the money before 7 years; don't do it.

Re: Annuities Question

lianne — Tue, 26 Apr 2016 01:22:49 GMT

Suze Orman discusses annuities at length both on her show and her website. She hates them and warned never to invest in them. Her website has tons of information on them. You might want to look there.

Re: Annuities Question

Snowpuppy — Tue, 26 Apr 2016 01:31:27 GMT

Annuities aren't always a bad idea. My BFF is enjoying her retirement with her 7% fixed rate annuity she took out in the 1990's. 😆

At this point in your life I think a fixed rate is better than a variable rate. They aren't going to raise rates in a meaningful way anytime soon.

I think Suze is about benefiting Suze.

Re: Annuities Question

KALLIE — Tue, 26 Apr 2016 01:43:58 GMT

@Snowpuppy wrote:
Annuities aren't always a bad idea. My BFF is enjoying her retirement with her 7% fixed rate annuity she took out in the 1990's. 😆

At this point in your life I think a fixed rate is better than a variable rate. They aren't going to raise rates in a meaningful way anytime soon.

I think Suze is about benefiting Suze.

I AGREE.

Re: Annuities Question

Kachina624 — Tue, 26 Apr 2016 01:45:57 GMT

Please, please don't take Susie Orman advice on anything.

Re: Annuities Question

Mmsfoxxie — Tue, 26 Apr 2016 01:47:02 GMT

@Kachina624 wrote:
I know financial advisors can be intimidating but you really need to speak with an expert who can evaluate your entire financial situation. A shopping channel board is not the place to do this. I am very comfortable with my Edward Jones advisor right in my neighborhood. There are many licensed companies available...call and make an appointment.

@Kachina624, coming to the board is for opinions. I've already spoken to the expert such as Edward Jones but I know he will put his own spin on it to make his money. This is back up info.

Re: Annuities Question

pdlinda — Tue, 26 Apr 2016 01:53:41 GMT

I retired with a fixed rate annuity for life and couldn't be happier with the security it provides to me!

Agree with those who question motives of "advisors" who have their own hidden agendas for investment recommendations. I say use your own commen sense, intelligence and life experience.

Re: Annuities Question

Mmsfoxxie — Tue, 26 Apr 2016 01:58:59 GMT

@Snowpuppy, I'm like your friend. This fixed annuity was started on my job in 1990. Now that I'm retired, the financial advisor came to my home to discuss what to do with that money.

I'm like some of you said, too old to tie up money for 7 years. His point is that I should be doing something with it to make it grow instead of staying fixed. Fixed is safe, though. He says I won't lose money but when I researched, I read that fees are involved which means that if there s no growth, it actually could end up being less money due to fees. I was just wondering if these people can be trusted.

By by the way, the company is Valic. Been with them for 25 years.

Thanks everyone one for your responses.

Re: Annuities Question

Kadilac — Tue, 26 Apr 2016 02:21:07 GMT

There are other options that will not tie up your money for 7 years. Ask your advisor what other optons are available and if he doesn't offer any look for another advisor.

Re: Annuities Question

Mz iMac — Tue, 26 Apr 2016 02:37:36 GMT

@Mmsfoxxie

Regarding the poster Kad-A-Lac excellent advice......

If you bank offline, you should talk w/the financial advisor(s) at your bank for a 2nd opinion. Another thing to consider, your bank WILL NOT CHARGE YOU A COMMISSION!

Re: Annuities Question

Jessa9 — Tue, 26 Apr 2016 02:52:21 GMT

@Mmsfoxxie my husband and I went to an elder law lawyer who was also a financial analyst. My husband has an annuity and he is very satisfied with it. However we put all our assets into a trust.

Re: Annuities Question

3cupcakes — Tue, 26 Apr 2016 10:11:16 GMT

Hi, @Mmsfoxxie

@tansy wrote:
Your financial advisor would probably benefit financially (receive a commission) for selling you this annuity. Not to be a pessimist but I wouldn't want my money tied up for 7 years if I were 68.

I don't think anyone here can advise you well without knowing more details. You want to see a fee-only financial advisor.

Hi, @Mmsfoxxie, this is an excellent suggestion from @tansy. Be really careful about tying up your funds for 7 years, keeping in mind your age.

it doesn't matter how long you have been w/a "wealth management company"; you really need a qualified second opinion on this matter.

All these places, including banks, make their money on fees paid so find out penalties, etc. if you should find you need that money ASAP.

Her further suggestion to find a fee only advisor is a good one, if only for a check up of what investments you hold & what you are considering.

good luck!

Re: Annuities Question

Desertdi — Tue, 26 Apr 2016 11:35:20 GMT

Your financial advisor needs to know everything about your lifestyle........

Will you be needing repairs on an older house? Do you like a new car every once in a while? Do you financially help out your children? Do you have health challenges? Do you shop at Nieman's, or Sears? Will you live with family, or require assisted living when you are older?

There is NO "one plan fits all" for retirement.

Re: Annuities Question

sarpy — Tue, 26 Apr 2016 11:36:13 GMT

Everyone who is retired needs a financial advisor. We retired 17 yrs. ago and have spent over $100,000 in medical. We still have our total retirement money intact. That's what our advisor has done for us. So you really need one.

Re: Annuities Question

Mmsfoxxie — Tue, 26 Apr 2016 12:36:39 GMT

Thanks again for all of the responses. The advisor did ask all of the pertinent questions such as my health status, spending habits, anticipated home repairs, etc. I did tell him that I would like to scale down to a condo in an independent living area. Husband refuses to believe that this house is too much for us though so that is in the air. He has health issues so I might have to make that decision for the both of us.

Well, it looks like no one actually has an indexed annuity that can speak on it so that speaks to their popularity or should I say lack of popularity, lol.

Looks like I'll be leaving things as they are because I'm not comfortable making any changes. I googled all day with no definitive answers.

Re: Annuities Question

CalminHeart — Tue, 26 Apr 2016 12:45:25 GMT

I've worked with annuities for 20 years. There are big differences between fixed and indexed annuities. My company just came out with a new indexed annuity and it's the very first indexed product I've ever considered to be ok for me.

What you do depends on your investment goals and current financial status. If in doubt, talk to another investment advisor to see what she/he says. You'd get a 2nd opinion on many medical issues so get a 2nd opinion on investments.

Re: Annuities Question

Mmsfoxxie — Tue, 26 Apr 2016 12:58:15 GMT

Thank you, @CalminHeart.

The advisor did sound as if the was a new type Index. He kept saying "our" indexed annuity. I forgot to add that he said that, if need, I would be able to withdraw a couple thousand or so without penalty if I wanted to. But that 7 year hold on MY money leaves my mouth open.

Also, the reason he thinks I'm a good candidate for this is that I have money that's just sat in my savings account for a few years that I haven't touched which could be used for emergencies. He considered that as disposable income. Once I decided that it was time to retire I got very conservative in my spending. I don't see the point of buying as many clothes and no jewelry anymore. I still buy the occasional handbag, though, lol.