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Annuity Owners, please share your experiences.
Posted on 6/28/23 at 9:22 am
Posted on 6/28/23 at 9:22 am
I'm shopping annuities and all the brochures highligt the advantages and possible returns.
I have yet to find even one cherry-picked, real life performance of actual returns and expenses. I'm asking that those who are drawing from an annuity, what type is it, and are you happy with it's performance (meaning, it's paying about what you expected it to pay, or are expenses and performance below of what you thought you bought). An annuity makes sense for some 'safe money', but all that glitters may not be gold.
Are you happy with your annuity or do you have buyer's remorse?
I have yet to find even one cherry-picked, real life performance of actual returns and expenses. I'm asking that those who are drawing from an annuity, what type is it, and are you happy with it's performance (meaning, it's paying about what you expected it to pay, or are expenses and performance below of what you thought you bought). An annuity makes sense for some 'safe money', but all that glitters may not be gold.
Are you happy with your annuity or do you have buyer's remorse?
6
Posted on 6/28/23 at 10:10 am to Enadious
I'm just curious of your horizon to need the funds.
Are you looking to draw down in a year?
2?
5?
7?
10?
Are you looking to draw down in a year?
2?
5?
7?
10?
Posted on 6/28/23 at 7:25 pm to Enadious
You sound anti-annuity, which is fine, but what led you to shopping annuities in the first place?
Posted on 6/29/23 at 7:45 am to Enadious
The wife has a structured settlement annuity. She was in a wreck when she was young in life and has titanium in her face and a scar on her elbow. I have no clue how much the original payout was, but her parents put the money into a structured annuity. It pays out every 2nd and 3rd year and the amounts increase quite a bit every couple of payments and the last one is like $124k when she turns 50. Think the overall value was somewhere just shy of $700k.
When we were younger and wanting a house, we considered that JG Wentworth or comparable buyout. But we soon realized that is a terrible idea. They wanted to pay something like 12.5 cents on the dollar for the annuity. Someone falsely told us it was something more like $.80 on the dollar but that was WAY off.
If you're not greedy, I'm guessing if you can find someone with a structured settlement annuity that needs some cash now, you could buy either the whole thing or select payouts at $.50 on the dollar pretty easy. Finding those people is probably the real challenge.
When we were younger and wanting a house, we considered that JG Wentworth or comparable buyout. But we soon realized that is a terrible idea. They wanted to pay something like 12.5 cents on the dollar for the annuity. Someone falsely told us it was something more like $.80 on the dollar but that was WAY off.
If you're not greedy, I'm guessing if you can find someone with a structured settlement annuity that needs some cash now, you could buy either the whole thing or select payouts at $.50 on the dollar pretty easy. Finding those people is probably the real challenge.
Posted on 6/29/23 at 8:30 am to Enadious
suggest you visit the bogleheads board and search under this topic. there are a couple of insurance guys that post alot about SPIA'. there are also several posters that discuss their strategies. One dude in particular buys a new spia each year. dollar cost averaging and creating his own penson. i'm following those threads with interest.
Posted on 6/29/23 at 1:26 pm to Enadious
What kind of annuity are you considering and for what reason? Sounds like you’re looking at a variable and annuitizing for lifetime income? Is that correct?
Posted on 6/29/23 at 2:59 pm to Enadious
Annuities are not for everyone and many on the money board look down on them because they don't return as well as the stock market. I have used then two different ways. Early in our investing career, my wife was risk adverse so we put away whatever we could into a fixed annuity earning 4, 5, 6 or 7% and also maxed out our 401k, 403g, simple, sepp, self directed 401k, etc. The interest grew tax deferred, and kept getting rolled over. We never planned on actually annuitizing, rather looked at it as guaranteed retirement money earning a rate better than a bank. Now that I am closer to retirement, it is one of several sources I will use to balance what I will owe to the IRS from my retirement funds. I have several with different maturity dates that continue to earn 4.5% or higher. They are just a part of a portfolio that contains stocks, bonds, ETF's, mutual funds, etc.. I was comfortable the last few times the market had a downturn and not all of my money was at risk and my losses were not as great.
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