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Message
Anyone have index annuity with Voya?
Posted on 12/16/16 at 7:24 am
Posted on 12/16/16 at 7:24 am
I'm thinking about moving some of my money from Edward jones and put it into an index annuity? Anyone have money with Voya and can give me some insight?
Currently with Edward Jones and in Mutal funds. Should I stay or move?
Currently with Edward Jones and in Mutal funds. Should I stay or move?
5
Posted on 12/16/16 at 2:32 pm to Hunter82378
quote:
Currently with Edward Jones
you obviously have not done your homework.
search for the edward jones thread here. RUN AWAY FROM EDWARD JONES. You really need a full service brokerage? For what??
high annual fees? high expense ratios? loads? no online trading?
Wouldn't you rather VANGUARD with NO annual fees? LOW expense ratios? NO-LOADS? online trading?
Posted on 12/16/16 at 4:44 pm to Hunter82378
quote:
put it into an index annuity?
If you read the fine print/disclaimers of the product, understand them, and then still choose to "buy" one then you don't understand what you thought you understood. It really is that simple.
Posted on 12/18/16 at 9:08 am to Hunter82378
I just love how these hit and run posters are asked a question and once they see they made themselves look silly they run away and never return. Never answering questions posed either.
Posted on 12/18/16 at 10:53 am to Hunter82378
My MIL bought one of these recently. Here's how it works:
1. Drop a large lump sum into the annuity.
2. "Financial advisor" pockets 5-10% commission.
3. You pay them a very large AUM fee for holding your money and additional fees for the index fund they may or may not actually invest your money in.
4. They start paying you back your own money at a certain age like a pension, with the statistical advantage that you will die sooner than you approach breaking even so they can keep the rest of the balance.
5. You can add products such as "death benefit" to further screw yourself.
6. If you finally realized you've screwed yourself, you will be charged a very large penalty for withdrawing your principal.
7. The insurance company can go bankrupt.
1. Drop a large lump sum into the annuity.
2. "Financial advisor" pockets 5-10% commission.
3. You pay them a very large AUM fee for holding your money and additional fees for the index fund they may or may not actually invest your money in.
4. They start paying you back your own money at a certain age like a pension, with the statistical advantage that you will die sooner than you approach breaking even so they can keep the rest of the balance.
5. You can add products such as "death benefit" to further screw yourself.
6. If you finally realized you've screwed yourself, you will be charged a very large penalty for withdrawing your principal.
7. The insurance company can go bankrupt.
This post was edited on 12/18/16 at 1:31 pm
Posted on 12/19/16 at 11:15 am to Fat Bastard
I've been busy podna! I asked a question .... didn't want to answer questions!
Since you got my piss hot with your smart arse comment I'll play.
The deal was laid down as such:
I give a large sum of money.
I choose the "spread" option which means I give them the first 1.5% of gains and I receive the rest. It is based off the S&P performance.
No fees! No record keeping fees! NADA!
Just seemed out of the ordinary from what I'm used too and was wondering if anyone else has tried this type of investment.
Since you got my piss hot with your smart arse comment I'll play.
The deal was laid down as such:
I give a large sum of money.
I choose the "spread" option which means I give them the first 1.5% of gains and I receive the rest. It is based off the S&P performance.
No fees! No record keeping fees! NADA!
Just seemed out of the ordinary from what I'm used too and was wondering if anyone else has tried this type of investment.
Posted on 12/19/16 at 12:00 pm to mohalk
quote:
1. Drop a large lump sum into the annuity.
Possibly
quote:
2. "Financial advisor" pockets 5-10% commission.
Possibly
quote:
3. You pay them a very large AUM fee for holding your money and additional fees for the index fund they may or may not actually invest your money in.
Most index annuities don't have annual fees or management fees nor do you own an index fund. However, you could pay a fee for an extra rider.
quote:
4. They start paying you back your own money at a certain age like a pension, with the statistical advantage that you will die sooner than you approach breaking even so they can keep the rest of the balance.
They don't keep the balance. This is no longer 1980.
quote:
5. You can add products such as "death benefit" to further screw yourself.
Possibly
quote:
6. If you finally realized you've screwed yourself, you will be charged a very large penalty for withdrawing your principal
Possibly
quote:
7. The insurance company can go bankrupt.
Possibly, but states have things in place to protect you to a certain limit.
This post was edited on 12/19/16 at 12:02 pm
Posted on 12/19/16 at 12:43 pm to Hunter82378
First question is how old are you?
It's more tailored to the older clientele in most cases.
Jacky basically gave you most of the correct answers.
There should have been an illustration that gives you the performance of the product over a fixed period best and worse case most likely.
Some have actual Guaranteed rates up to so many yrs etc.
It's not like the 80s so they get a bad rap from people who were burned 30 yrs ago.
Did they they how long you need to keep it in or what the surrender charges will be.
Some let you take 10% a yr w no surrender charge.
Need more information on the product itself to be able to give you a better answer.
It's more tailored to the older clientele in most cases.
Jacky basically gave you most of the correct answers.
There should have been an illustration that gives you the performance of the product over a fixed period best and worse case most likely.
Some have actual Guaranteed rates up to so many yrs etc.
It's not like the 80s so they get a bad rap from people who were burned 30 yrs ago.
Did they they how long you need to keep it in or what the surrender charges will be.
Some let you take 10% a yr w no surrender charge.
Need more information on the product itself to be able to give you a better answer.
Posted on 12/19/16 at 1:09 pm to Tigerfan19
It's a 7 yr program. I was told after that time period I can take it and move to another investment without any penalty. I'm 38 so I have plenty time to move it around if it's not performing the way I would hope.
Posted on 12/19/16 at 1:13 pm to Hunter82378
IRA or non-qualified?
Posted on 12/19/16 at 1:16 pm to Hunter82378
quote:Seems like you'd be much better off just using that large sum of money to buy VFIAX and keeping that first 1.5% of gains.
The deal was laid down as such:
I give a large sum of money.
I choose the "spread" option which means I give them the first 1.5% of gains and I receive the rest. It is based off the S&P performance.
No fees! No record keeping fees! NADA!
Posted on 12/19/16 at 1:35 pm to Janky
I read the contract for a Prudential one and the annual fees totaled about 2-3% per year all included. You can debate what the fees are named in the contract but they still exist.
Annuities and their salesmen have earned their reputation for being non-transparent with their costs and predatory on low-information investors and the elderly.
There are a few situations where it might be make sense if you have exhausted all tax-advantaged space and don't have much risk tolerance to consider normal investments and want a pension-like vehicle instead. In the that case, a savvy person could find the lowest cost, best annuity to fit that need.
In the end it's an insurance product and not an investment and hopefully the debate on this page will spur the OP into actually reading his contract and figuring it out for himself.
Annuities and their salesmen have earned their reputation for being non-transparent with their costs and predatory on low-information investors and the elderly.
There are a few situations where it might be make sense if you have exhausted all tax-advantaged space and don't have much risk tolerance to consider normal investments and want a pension-like vehicle instead. In the that case, a savvy person could find the lowest cost, best annuity to fit that need.
In the end it's an insurance product and not an investment and hopefully the debate on this page will spur the OP into actually reading his contract and figuring it out for himself.
Posted on 12/19/16 at 1:56 pm to mohalk
I am not aware that Prudential offers indexed annuities. Do you remember the product name?
Are you sure you weren't looking at a variable annuity? That is a whole different animal.
Are you sure you weren't looking at a variable annuity? That is a whole different animal.
Posted on 12/19/16 at 2:09 pm to Janky
38 seems really young to invest in an index annuity product. If it's variable then yes that's a different answer all together.
It's an insurance product that does work like a pension plan.
Is it qualified or non qualified money?
At your age I would probably invest in something that could maximize your investment esp at your age. Instead of dropping it in an index annuity product.
It's an insurance product that does work like a pension plan.
Is it qualified or non qualified money?
At your age I would probably invest in something that could maximize your investment esp at your age. Instead of dropping it in an index annuity product.
Posted on 12/19/16 at 2:23 pm to Janky
No I don't remember what it was called, but it could have been a variable annuity. My point overall here is that they are frequently sold to people who don't actually understand what they are buying and are unaware of the true direct and indirect costs of what they are buying. Many times it's not really in their best interest for their situation, but they are persuaded by the (overpriced) guarantees and marketing materials.
If you think you thoroughly understand the product and still think it works for you or whoever your selling it too, then that's terrific. Just voicing a different opinion here.
If you think you thoroughly understand the product and still think it works for you or whoever your selling it too, then that's terrific. Just voicing a different opinion here.
Posted on 12/19/16 at 2:28 pm to mohalk
quote:
If you think you thoroughly understand the product and still think it works for you or whoever your selling it too, then that's terrific. Just voicing a different opinion here.
I never stated an opinion just pointed out that you likely don't know what you are talking about, thus your advice to the OP should be taken with a grain of salt.
Posted on 12/19/16 at 2:52 pm to mohalk
Side note: let's be real, out of all retiree's and savers, what % do y'all think truly understands what the hell theyre buying?
I'm not asking this to make anyone look bad, but for the mass majority of savers and retirees IMO, don't care. They just want "to be taken care of."
I believe there in lies your problem.
I'm not asking this to make anyone look bad, but for the mass majority of savers and retirees IMO, don't care. They just want "to be taken care of."
I believe there in lies your problem.
Posted on 12/19/16 at 6:00 pm to Shepherd88
Probably less than 10%.
I'd agree. It's like receiving a pension for retirement instead of a 401k. The 401k will probably perform a lot better, but the pension takes the thinking and responsibility out of it.
I'd agree. It's like receiving a pension for retirement instead of a 401k. The 401k will probably perform a lot better, but the pension takes the thinking and responsibility out of it.
Posted on 12/19/16 at 6:14 pm to mohalk
Exactly. There are those who want to "live in retirement" and there are those who want to "enjoy their retirement." Your haves and have nots, or as someone said on this board once, "those who understand how interest works, earn it. And those who don't understand how interest works, pay it."
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