Annuities: the Answer to a Weak Stock Market?

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I agree too, annuity guarantees are of the upmost importance to retirees and those looking to annuities to provide a steady stream of income. You have such a great idea regarding annuity rate. Thanks for sharing your ideas.

Andy of LA 3:40AM February 13, 2012

Annuities like any other investment should be used with a proper plan and discipline. The guarantees are expensive but they do fill a need under the right circumstances. To take a portion of your retirement dollars and guarantee income for retirement can make very good sense. I do agree variable annuities as well as fixed annuities are not always sold right or for the right reasons. If properly explained to the client including the increase in expense they can be a wonderful planning tool both during the owners lifetime and at death for estate planning purposes. There's much more in terms of pros and cons that can be said about annuities of all kinds. Isn't that true about most any product used for planning and investing? Advisors, if we are doing our job most investment products should work out ok for our clients in good times and bad times. In these turbulent times our active management has never been more important.

Barb Wood of MI 1:24PM August 09, 2010

Its my understanding that insurance companies have always invested heavy in U. S. Treasuries. Predictions are treasuries will be hit hard sometime over the next 24 months. Since most annuities are not FDIC insured what happen if this happens?

Jim of CA 2:56PM February 19, 2010

comparing insurance companies to other business and especially banks http://www.fdic.gov/bank/individual/failed/banklist.html their financial strength stacks up very well. Over 50 banks have crumble this year alone.

Carl of OH 6:08PM May 22, 2009

Proof is in the pudding: Since the current market crash started in the lost quarter of 2007 how much has been lost, of principal, in a fixed annuity? ZERO..I've talked with many investors who only wish they had recieved a zero return. Rather, they got a -20%, -30@ or more. So, take your shots and make your bitter opposing remarks. You can't argue the safetof annuities. Annuities are not for risk takers, they are for "conservative" investors looking for capital preservation and a competitive "fixed" return. For those people, it's a decent fit for some of their assets. By the way, yes, I sell annuities, and I'm proud of it.

brady of CA 12:28AM March 16, 2009

Wow, I cannot believe the amount of mis-information out there.
1st - There are Lifetime income annuities that can be adjusted for inflation.
2nd - There are annuities that WILL NOT penalize the policy holder if making 10% annual withdrawals.
3rd - There are annuities that will guarantee your principal intact (less any withdrawals the policy holder makes) should you forfeit the policy.
4th - Not all annuities have outlandish 14 year surrender charge periods.
5th - That's why when dealing with insurance backed products, it's in your best interest to work with Mutually owned companies vs. Publicly owned companies such as AIG, Metlife, etc. who have significantly seen their assets dwindle due to poor management decisions and seeing their stock prices drop like a 2 ton rock.
6th - For those who still want to take advantage of the downturns or invest aggressively in the stock market but not risk losing their principal, there are living benefits available to variable annuity policy holders who have the option of guaranteeing their principal OR future accumulated values against further market losses. It's their choosing.
Before any ignorant bashing and posting mis-information on the web for readers to read, at least do your reader's a favor and try doing some due diligence first before posting a bunch of fluff.
NYL_Financial_Advisor
Series 7 Registered Rep.
Series 66 Investment Advisor

NYL_Financial_Advisor of IL 7:59AM March 02, 2009

I think that it would be a good idea for everybody to refer to the web site: gusgutstadt.blogspot.com for some very sage advice on annuities - based on experience and ownership.

L.R. Gutstadt of CA 9:09PM February 21, 2009

I retired a year ago last July. I purchased an annuity that gave me a 4% bonus plus the innitial amount is guaranteed. I was aware of the cost because at one time, I sold them. I'm down nearly 50% on my other investments. The actual value of my annuity has dropped more than that, BUT, my original investment is guaranteed. What I first thought to be a questionable investment is now a lifesaver.

Neil R. Beaupre of NH 7:38PM February 20, 2009

Mr Robertson from NV needs to think twice about some of his words. It's not like it's really easy for someone to do their own research and buy the best annuity without some advice.
All a bunch of liquidity does for most people is give them losses or returns that are less than inflation.
If someone put a $100,000 into an annuity with a 14 year surrender charge and someone else put that same 100,000 into the S&P 500 back on 1/1/08, even with the so called hefty surrender charge, the first person would get a lot more money back.
And they could take 10% without losing a dime.
The person who put their money in the market is afraid to touch any of it because the need to leave it all there hoping to make back their losses.

Bruce H, Indianapolis, IN of IN 10:17PM February 03, 2009

Mr. Robinson is obviously a stock broker, having no patience to understand anything that carries no risk. A high water mark is inherent in a variable annuity. A fixed annuity, conversely does not offer the opportunity to lose money. The ones I'm familiar with do not carry any fees, guaranteed for the life of the contract -- unless the saver elects to pay .45% a year (yes, less than a half percent) to guarantee an 8% return via an income rider. It is appropriate for those who want to augment their social security income with a steady stream for life. Then as stated in the article, they can feel much more comfortable in more aggressive investing for their remaining funds.

Jim Beach of FL 7:22PM February 03, 2009