Home Forums Hunting & Shooting Canada Annuities ?

Anyone have any thoughts or experience with these investments ? They seem like a safer option than the stock market.

Not sure what is available in Canada but those offered here are usually a very poor investment with many down sides.

They are a very good deal for the person that sells them Bob Brinker calls them the SHARKS!

One problem is the dollar value you agree to have paid to you each month is simply devastated by inflation over the years.

I had one for 12 years with RBC Dain Rauscher they guaranteed 5% return a year death benefit. I took it out so my beneficiary would have money to settle my debt incase of my early demise. Problem is it started out a piece of the Rock ( Prudential) then they sold it to Met life who sold it to Brighthouse financial. Yeah I should have retrieved it the first time they sold it. When I cashed out and rolled it over to my other IRA it had only gained 8% in 12 years a poor investment in the least. When you get an annuity they can sell it anytime they want, poor return for your investment. My advice don't period. Watching Trudeau fug with the Canadians who supported the truck convoy supporters by freezing their asset accounts convinced me not to have anymore dealings with RBC Royal Bank of Canada....just my 2 cts...mb

The reason why agents push annuities is the high commissions paid for the agent. The high commissions affect the overall return. Annuities are contracts which are honored no matter what company takes over management. There are too many variations and variables to make many blanket statements. My advice is to make sure you understand the terms of the contract, and read the policy for yourself not taking the sales agent's word on anything.

stay away from them. Much better low risk options without high commissions

stay away from them. Almost as bad as investing in a timeshare

Much better low risk options without high commissions

Annuities are contracts....Correct?

If you know what the contractual guarantee is and you know when it will begin paying, how can annuities be bad? (specifically SPIAs)

For a guaranteed income (not a growth investment tool) I believe annuities definitely have a place for many people.

You will not lose money like you may with most other "investment" options linked to markets.

Know the tax status. Qualified or Non-Qualified?
Know the terms.
Know the interest rate. Is it fixed or variable?

Family member who sold them as a broker, put his money in them because he got the fixed rate he wanted, PLUS his commission made a good return.
Think about that for a minute.
Died shortly after beginning his RMD's.
Beneficiaries lost a big tax component.

Well, ONE person got it lol

I simply dont know enough about the stock market to feel comfortable relying on it. As a small business owner there isnt a pension. My assets are all real estate that we will hopefully be able to turn into a steady stream of income as we start to sell them off. I would rather have a safe investment. Any opinions on the safest approach ? My goal is to have at least 4-5 thousand a month coming in.

And you might be a good candidate for annuities, but obviously no one should just hand you one without transparency and a financial diagnosis.

High expense rates. Any professional financial planner will advise to avoid them

Find some good proven dividend stocks ( commodities) and some tax free bonds and some metals ( 5 to 10 per cent) The market is tanking and there will be some good deals in a few months. Just think long term and dont freak out if watch every day as market s volatile

https://www.bloomberg.com/news/arti...ing-out-to-lock-in-high-inflation-yields


Might want to think about bonds

I listen to this guy every morning . Pretty common sense. I think people should be more proactive in investing their own money and not just have someone watch it for them. I have a lot of friends with financial advisers and none of their advisers have reallocated their investments this year. If you self direct and spend some time educating yourself I feel one can do much better

https://www.youtube.com/watch?v=8yhxHYWYh00

This discussion still going on?...Fisher Investments puts out a good free document on Annuities. "9 Questions you should ask about annuities" ...or something along those lines. It's easy reading and highly informative.

Bonds have their plus minuses as well. You know that as rates rise, Bond values on the secondary market drop right? Fine if you're holding to maturity. Not so fine if you need to cash out in market with rising rates.

Of course Obviously do reasearch before investing and keep your investments diversified