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04-25-2016 09:58 PM
@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.
04-25-2016 10:37 PM
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!
04-25-2016 10:52 PM
@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.
04-26-2016 06:07 AM - edited 04-26-2016 06:11 AM
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.
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.
04-26-2016 07:35 AM
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.
04-26-2016 07:36 AM
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.
04-26-2016 08:36 AM
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.
04-26-2016 08:45 AM
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.
04-26-2016 08:58 AM
Thank you, @CalmInTheHeart.
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.
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