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Started By
Message
re: Fixed Index Annuities for income in retirement
Posted on 4/20/23 at 8:34 am to slackster
Posted on 4/20/23 at 8:34 am to slackster
quote:
quote:
I haven't found anyone with a plan that I can trust
Keep looking then.
If you are looking for true financial planning, here's the quickest way to vet a firm/FA.
Part One
I'm biased as I'm a CFP, but by searching for a CFP on https://www.letsmakeaplan.org you narrow the field quickly. I know many non-CFP FAs who are good, but there's an ever deepening divide in product and service between CFPs and non CFPs.
Part Two
Go to their website and find their "Client Login" page. There should be a link that takes you to an eMoney (emaplan.com), MoneyGuidePro (moneyguidepro.com), or RightCapital (rightcapital.com) site. This is the software 99% of professional, legit FAs and planners use. Be prepared to flat or hourly fee for a plan. If the login page takes you to an insurance company - this ain't your guy.
Good luck.
1
Posted on 4/20/23 at 9:14 am to Enadious
quote:Oh my.
Enadious
Posted on 4/20/23 at 9:28 am to GallinagoGallinago
quote:
There should be a link that takes you to an eMoney (emaplan.com), MoneyGuidePro (moneyguidepro.com), or RightCapital (rightcapital.com) site.
LOL they must have a Gallinago-approved software. I'm 20 years in, have used all of these software's, and don't find value in them. People who want to spend the time to enter all their data generally don't seek out an advisor (see: all MT threads). The CFP exam taught me how to use a calculator like a gangster.
I'm sure some clients like a bunch of pretty charts and graphs, by mine typically don't -- or they go somewhere else. That's ok too.
I agree with your CFP comments though. Your odds are significantly better of finding a good one that way. The key is someone who can explain difficult concepts in simple terms, not whether they can show you a graph to illustrate the same concept. Simplicity is key. When you know your shite, you don't need 6 different strategies to make it work.
Posted on 4/20/23 at 2:40 pm to Enadious
What are annuities paying out these days? I don't think there's anything wrong with annuities but you have to understand that they are VERY expensive.
Annuities are assets managed by a 3rd party that are paying a basically guaranteed ROI. So they are expensive because they have to guarantee the return which means they are insured if they don't make it and their numbers are going to be conservative to guarantee they do make them.
Then annuities pay out significant commissions usually to get brokers to get clients to buy them.
With 4% CD's I'm curious why someone wouldn't buy a healthy portion of them or Treasuries and just invest in Equities?
Annuities are assets managed by a 3rd party that are paying a basically guaranteed ROI. So they are expensive because they have to guarantee the return which means they are insured if they don't make it and their numbers are going to be conservative to guarantee they do make them.
Then annuities pay out significant commissions usually to get brokers to get clients to buy them.
With 4% CD's I'm curious why someone wouldn't buy a healthy portion of them or Treasuries and just invest in Equities?
Posted on 4/20/23 at 3:00 pm to baldona
I got a fixed rate sheet the other day 3 year for 4.8% and 10 year at 5.3%. eta. the 5 year is 5.3% as well.
This post was edited on 4/20/23 at 3:09 pm
Posted on 4/20/23 at 3:07 pm to UpstairsComputer
quote:
I got a fixed rate sheet the other day 3 year for 4.8% and 10 year at 5.3%.
Wow, that seems terrible? Why would someone choose those over Treasuries?
Posted on 4/20/23 at 3:11 pm to baldona
Was thinking the same thing. Maybe to lock in the higher rate assuming the rates have to un-invert later and rates go back down? Only thing I can think of.
Posted on 4/20/23 at 4:20 pm to UpstairsComputer
quote:
I got a fixed rate sheet the other day 3 year for 4.8% and 10 year at 5.3%. eta. the 5 year is 5.3% as well
These rates are not for VAs or DIAs.
Posted on 4/20/23 at 4:25 pm to baldona
quote:
Why would someone choose those over Treasuries?
For the guarantees and there is some level of risk with Treasuries.
Posted on 4/20/23 at 4:35 pm to La Place Mike
In fairness, if the government defaults, you’d think it was a crapshoot with which insurance companies survive that.
Only thing I can think of is interest rate risk…
Only thing I can think of is interest rate risk…
Posted on 4/20/23 at 5:04 pm to UpstairsComputer
Some people just like guarantees.
Posted on 4/20/23 at 6:06 pm to UpstairsComputer
quote:
Only thing I can think of is interest rate risk…
Yes.
Posted on 4/21/23 at 8:34 am to Enadious
quote:
I'm 18 months from retirement
I don't understand why he is recommending a VA because there is still a risk of loss. An Index Annuity would make more sense.
The 50% allocation also is questionable unless you are really worried about losing half you portfolio but there again an Index Annuity would make more.
Before any down votes I am not recommending anything. I am trying to make sense out of what the FA is recommending.
Posted on 4/21/23 at 8:59 am to La Place Mike
quote:
I don't understand why he is recommending a VA
I don't see where he was recommending a VA. I may have missed it.
This post was edited on 4/21/23 at 9:00 am
Posted on 4/21/23 at 1:33 pm to TDTOM
quote:
I don't see where he was recommending a VA. I may have missed it.
I am sorry, I must have saw VA in another post. The OP says fixed index.
This post was edited on 4/21/23 at 1:36 pm
Posted on 4/21/23 at 6:09 pm to La Place Mike
New question: If I take funds from my 401K(tax deferred), and use those funds to buy a fixed variable annuity, do I have to pay taxes on the funds taken out of the 401K before purchasing the annuity?
Posted on 4/21/23 at 6:54 pm to Enadious
To be clear, are you transfering all of the funds in the 401K or some of the funds?
IMO I would not purchase a Variable Annuity when 18 months out from retirement. If you go with the annuity solution look at Indexed Annuities.
IMO I would not purchase a Variable Annuity when 18 months out from retirement. If you go with the annuity solution look at Indexed Annuities.
Posted on 4/21/23 at 7:12 pm to Enadious
quote:
fixed variable annuity
No such thing.
quote:
do I have to pay taxes on the funds taken out of the 401K before purchasing the annuity?
As long as you buy a qualified (IRA) annuity, then no taxes owed until distribution.
Posted on 4/21/23 at 7:53 pm to TDTOM
quote:
fixed variable annuity
No such thing.
Yes but I think the OP might be saying Variable when he means Index.
Posted on 4/21/23 at 8:02 pm to La Place Mike
quote:
Yes but I think the OP might be saying Variable when he means Index.
You are probably right. Which tells me that he needs someone to make sure he understands what he is getting into before he signs his name.
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