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Posts: 12,850
Campfire Outfitter
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Campfire Outfitter
Joined: Jan 2002
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Recently, most annuties had a 5% "return" (not the right word). Not too good with 7% inflation.
This, aside from all the issues with fees, gotcha clauses and low returns in general, is the core of the problem. Fixed annuities in a inflationary environment. If you go with a variable annuity, then you give up about a third of the expected return for what is only a perceived safety factor over longer periods.
Sic Semper Tyrannis
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Joined: Feb 2010
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Campfire Ranger
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Campfire Ranger
Joined: Feb 2010
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Annuities are like time shares. A great money maker for the bastard selling them.
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Joined: Feb 2011
Posts: 5,856
Campfire Tracker
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Campfire Tracker
Joined: Feb 2011
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It may sound good to be getting a grand or so a month when you're healthy but when you need long term care or assisted living you'll wish that you had the principal that you gave the insurance company.
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Joined: Dec 2013
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Campfire 'Bwana
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Campfire 'Bwana
Joined: Dec 2013
Posts: 44,284 |
TIAA Cref offered me an annuity for the money I have in my TIAA 403B. If I die before 10 years of payments, the remaining payments go to my choice. After 10 years I receive the same amount until I die.
The MONTHLY ANNUITY payment was about the same as my ANNUAL estimated social security total. So my thoughts were I could not possible spend all that money. I will say they are hot on selling the lifetime annuity. Seems they bring it up if I call about something. I have zero intention of going that route, primarily because it benefits them not me. I have enough so they can't tempt me.
Funny too, that they always push it, and apologize at the same time for pushing it. They say it is not a recommendation, just a random thought. Pretty creepy. That is creepy. Kinda like Resident Biden and his schlongs pushing the vax so hard. Why??
Slaves get what they need. Free men get what they want. Rehabilitation is way overrated. Orwell wasn't wrong. GOA member disappointed NRA member 24HCF SEARCH
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Joined: Dec 2013
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Campfire 'Bwana
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Campfire 'Bwana
Joined: Dec 2013
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I have never invested in an annuity but I am considering doing so. My wife and I sold our home at the beginning of April in Michigan and we moved to Oregon where I found a new job. We are currently renting a home owned by my employer and we may continue to do so long term as opposed to buying a home here. If we do that then I need to somehow invest the money we have from selling our Michigan home. I hate having that much money just sitting in the bank and not earning any money for us. So I might perhaps put that money into an annuity.
I do like having my own home but the prices here for something decent are quite high and it does tend to tie one down. The business where I work is getting sold at the beginning of January and I will likely remain working here but I am not certain of that. Partly will the new owners be good people to work with? Will they be able to increase my wage which is low compared to the industry standard. So I am currently glad that we did not try to buy a home immediately after moving to Oregon.
Anyway I would love to hear some thoughts on what I can do with the proceeds from selling our Michigan home until we might decide to buy a home if ever.
I am guessing that I will retire in about 10 years and hopefully my wife will do the same in about 14 years. rufous, gotta ask. Why did you move to OR??
Slaves get what they need. Free men get what they want. Rehabilitation is way overrated. Orwell wasn't wrong. GOA member disappointed NRA member 24HCF SEARCH
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Joined: Jul 2015
Posts: 14,693
Campfire Outfitter
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Campfire Outfitter
Joined: Jul 2015
Posts: 14,693 |
Life insurance is insurance in case you don't live long enough and annuities are insurance in case you live too long.
The problem with investments is that when you spend what you have invested, it's gone. You are broke.
Shop carefully.
Politics is War by Other Means
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Joined: Jul 2001
Posts: 2,172
Campfire Regular
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OP
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Local Dirt, I lost my job as winemaker in Michigan at the beginning of the year due to the severe financial impact of Covid closures on the winery I was working for. I did not foresee being able to find suitable work in the area I was living in Michigan so we sold our home and moved to Oregon to live with my mom while I continued to look for work which ended up being in Roseburg. I grew up in Oregon and for the most part like the state but not the politics led by the left.
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Joined: Dec 2013
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Campfire 'Bwana
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Campfire 'Bwana
Joined: Dec 2013
Posts: 44,284 |
Local Dirt, I lost my job as winemaker in Michigan at the beginning of the year due to the severe financial impact of Covid closures on the winery I was working for. I did not foresee being able to find suitable work in the area I was living in Michigan so we sold our home and moved to Oregon to live with my mom while I continued to look for work which ended up being in Roseburg. I grew up in Oregon and for the most part like the state but not the politics led by the left. Well, the good news is you may have better luck finding a winery job in Oregon then you would have in Michigan.
Slaves get what they need. Free men get what they want. Rehabilitation is way overrated. Orwell wasn't wrong. GOA member disappointed NRA member 24HCF SEARCH
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Joined: Sep 2009
Posts: 2,994
Campfire Regular
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Campfire Regular
Joined: Sep 2009
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The companies that sell annuities make money from selling them. This means that they take the money from annuity purchases and invest it elsewhere where returns are higher. Why not just invest the money yourself instead of buying an annuity? I realize this means you have to know something about investing, but it's definitely a better way to get more return on your money.
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Joined: Jan 2001
Posts: 10,938
Campfire Outfitter
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Campfire Outfitter
Joined: Jan 2001
Posts: 10,938 |
Using my wife’s limited experience as a guide........don’t! There is usually a lengthy time before you can withdraw without severe penalties. Your return will likely be many (many) percentage points below the stock market gains.
A good, conservative mutual fund is lightyears ahead of the crap that my wife invested into! memtb
Last edited by memtb; 12/27/21.
You should not use a rifle that will kill an animal when everything goes right; you should use one that will do the job when everything goes wrong." -Bob Hagel
“I’d like to be a good rifleman…..but, I prefer to be a good hunter”! memtb 2024
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Posts: 30,960
Campfire 'Bwana
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Campfire 'Bwana
Joined: Nov 2011
Posts: 30,960 |
As someone who's held a half dozen securities licenses over a 20 year period, this cannot be emphasized enough. Advice #1 DON'T buy an annuity for any reason whatsoever. They are the next worst investment next to Whole Life Insurance. Borderline scams. This is even more true right now as we enter an increasing rate environment. The one thing that can make these investments even worse is happening right now.
You didn't use logic or reason to get into this opinion, I cannot use logic or reason to get you out of it.
You cannot over estimate the unimportance of nearly everything. John Maxwell
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Joined: Jun 2012
Posts: 17,098
Campfire Ranger
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Campfire Ranger
Joined: Jun 2012
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Contact Mark Claiborne in Walla Wall Wash for expert annuity advice
The government plans these shootings by targeting kids from kindergarten that the government thinks they can control with drugs until the appropriate time--DerbyDude
Whatever. Tell the oompa loompa's hey for me. [/quote]. LtPPowell
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Joined: Nov 2011
Posts: 30,960
Campfire 'Bwana
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Campfire 'Bwana
Joined: Nov 2011
Posts: 30,960 |
TIAA Cref offered me an annuity for the money I have in my TIAA 403B. If I die before 10 years of payments, the remaining payments go to my choice. After 10 years I receive the same amount until I die.
The MONTHLY ANNUITY payment was about the same as my ANNUAL estimated social security total. So my thoughts were I could not possible spend all that money. I will say they are hot on selling the lifetime annuity. Seems they bring it up if I call about something. I have zero intention of going that route, primarily because it benefits them not me. I have enough so they can't tempt me.
Funny too, that they always push it, and apologize at the same time for pushing it. They say it is not a recommendation, just a random thought. Pretty creepy. That's because Annuities have one of, if not the highest profit margin of any financial product, so the companies what the reps to sell them, but they are such crap the reps are embarrassed to bring them up, but have to so they don't get fired.
You didn't use logic or reason to get into this opinion, I cannot use logic or reason to get you out of it.
You cannot over estimate the unimportance of nearly everything. John Maxwell
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Joined: Feb 2011
Posts: 5,856
Campfire Tracker
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Campfire Tracker
Joined: Feb 2011
Posts: 5,856 |
Many in my parents' generation were scared into buying annuities. They lived through the Depression and salesmen used the "what if the stock market crashed again? You could lose EVERYTHING!". My parents didn't fall for it, but my one aunt did. If they were such good products, you wouldn't have to scare people into buying them.
Last edited by UPhiker; 12/27/21.
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Joined: Jul 2001
Posts: 2,172
Campfire Regular
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OP
Campfire Regular
Joined: Jul 2001
Posts: 2,172 |
Again, I am rather ignorant about investing so take that into consideration with my next query. Am I correct to assume that if I decide to continue to rent and then invest the money we made when we sold our Michigan home (after living in it for about 4 and a half years) then I would have to pay capital gains taxes on whatever gains we make by investing that money?
If instead, I buy another house and eventually get it paid off then I would have a place to live with no payment (other than utilities, property taxes and maintenance of course) and no taxes on gains.
That is why I have bought 3 homes so far. I had to live somewhere and figured I might as well build equity while doing it. Now though the cost of houses is high and my job situation is a bit uncertain due to new owners taking over in a week.
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Campfire Tracker
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I used to be VP/Investments Merrill Lynch before I retired. That said, I would never put someone in an annuity even though I would have made several times more income doing it. Annuitys are most often sold by insurance people (Yes, I had that license too) who are not lic to sell regular investments. You loose a lot of control with them and the fees are atrocious.
Look at rolling over the proceeds into a professional money manager or buy some timberland...
Last edited by Sasha_and_Abby; 12/27/21.
"If there are no dogs in Heaven, then when I die, I want to go where they went"
Will Rogers
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