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re: Fixed Index Annuity – do any of you have experience with them? Update on page 2
Posted on 10/9/14 at 5:24 pm to LSUGUMBO
Posted on 10/9/14 at 5:24 pm to LSUGUMBO
quote:
I think mine have made about 3-4% over the last couple of years, plus the 10% bonus.
I'm sure you're aware of this, but for the OP's sake, and for the sake of comparison, an S&P 500 Index fund returned 19%, 32%, 16%, and 2% over the last 4 years. And even balanced funds that hold majority bonds are not too far behind that.
Moral of the story: You pay dearly for the assurance of no lost $$. Don't be afraid of a little risk.
1
Posted on 10/10/14 at 4:59 pm to Sigma
quote:
Moral of the story: You pay dearly for the assurance of no lost $$. Don't be afraid of a little risk.
Meh, not necessarily. Most index annuities would have outperformed the S&P from 1999-2008, just like most would have underperformed the S&P 500 in the 90s, but that is an unfair comparison either way. A client who is entertaining an index annuity is comparing them to CDs, not a balanced mutual fund or SPY.
Index annuities are one of many financial products that are available to individual investors. They have their purpose and they're a suitable investment for lots of people. The Money Talk board is full of people who are open to a significant amount of risk, and as a result, an FIA is not appropriate.
If you're 50+, I think it is worth looking into, especially if the money is going to be sitting in CDs or money market accounts otherwise.
This post was edited on 10/10/14 at 5:02 pm
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