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Thread: Annuities

  1. #1
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    Annuities

    Anyone ever set one up before?

    I am thinking about setting one up for Alyssa and I, even though it's a very conservative investment, at our age, it should pay out very well throughout our lifetime.

    Just curious if anyone else has ever set one up on here.

  2. #2
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  3. #3
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    Re: Annuities

    they seem like a complete scam.

    Give someone a large amount of money, get small payouts over time? No thanks. I can do better in the market.

    Annuity companies are basically betting that you die before you get your money back. Or, even if you last, that they make enough money off your money to make it a success for them.

    Pay big now for little bits through life? when the little bits will be losing value every year with inflation, and they make money on my money by investing it?? No way.

    I did look into it though, because the IRA and 401k didnt seem like enough, and I was paranoid about Medicare being gone by the tmie I retire. But better bets are property, retirement accounts, stocks...owning stuff.

    Quote Originally Posted by gleklufdshlaw View Post
    Unfortunately, I do not have all the answers...

  4. #4
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    Re: Annuities

    Well...I could buy a rental property for example, for 100 grand...charge rent total for maybe 650 a month, for however long...and still own the property.

    With an annuity, I could put in that 100 grand, and do a 20 year guarantee and get it for life (especially at my age), and according to this lil calculator would give me 562.50 a month...with no lapse's from not having the property rented out and no maintenance on the property. Basically no headache's, but I keep the value of the property if I buy property. Which could even raise in value. But there are also other expenses, like insurance etc.

    At least with an annuity I get it for life, regardless.

    I like the idea of setting aside a set monthly paycheck for myself for life.

  5. #5
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    Re: Annuities

    Yah, I can see the benefits. Upkeep on my rental property can be annoying, and trying to manage and find renters in down markets, bleh.

    I just get scared about buying a $200k annuity, adn then getting hit by a bus, and they walk away with all that. Not sure if you can will it to someone, or if it declines or what. But if you set aside a monthly paycheck at age 26 or 29, by the time you retire at 65 that $$ amount will be worth a TON less in raw purchase power. Is the annuity amount adjusted for inflation and living expenses? I would doubt it.

    When you combine
    1) the money they make off your investment, that you COULD be making, but aren't
    2) the decline in purchasing power of your monthly payout amount
    3) not actually owning anything tangible and liquid

    I just see it as a net negative.

    Quote Originally Posted by gleklufdshlaw View Post
    Unfortunately, I do not have all the answers...

  6. #6
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    Re: Annuities

    Quote Originally Posted by Alloutwar View Post
    Yah, I can see the benefits. Upkeep on my rental property can be annoying, and trying to manage and find renters in down markets, bleh.

    I just get scared about buying a $200k annuity, adn then getting hit by a bus, and they walk away with all that. Not sure if you can will it to someone, or if it declines or what. But if you set aside a monthly paycheck at age 26 or 29, by the time you retire at 65 that $$ amount will be worth a TON less in raw purchase power. Is the annuity amount adjusted for inflation and living expenses? I would doubt it.

    When you combine
    1) the money they make off your investment, that you COULD be making, but aren't
    2) the decline in purchasing power of your monthly payout amount
    3) not actually owning anything tangible and liquid

    I just see it as a net negative.
    You can add a beneficiary, and it will guarantee that it will be paid for a minimum of 10 or 20 years, whichever you select, but it's slightly more expensive if you chose that.

    I def see what you are saying.

    2 grand a month today, isn't what it will be worth in 20 years for example...and you own nothing tangible that you can re-sell for that value. But you do also earn interest on the money that you invest.

  7. #7
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    Re: Annuities

    Quote Originally Posted by Jeffy25 View Post
    Well...I could buy a rental property for example, for 100 grand...charge rent total for maybe 650 a month, for however long...and still own the property.

    With an annuity, I could put in that 100 grand, and do a 20 year guarantee and get it for life (especially at my age), and according to this lil calculator would give me 562.50 a month...with no lapse's from not having the property rented out and no maintenance on the property. Basically no headache's, but I keep the value of the property if I buy property. Which could even raise in value. But there are also other expenses, like insurance etc.

    At least with an annuity I get it for life, regardless.

    I like the idea of setting aside a set monthly paycheck for myself for life.
    Do like AOW said... Buy property... MUCH better investment... You house isnt going to go bankrupt... that company can... Then what

    If you are lookin at something that is less "worrysom" do my "Lotto idea"

    lets say I have 5.2 million (just to make it easy on the #'s) Ever week for 1 year I put 100,000 in the bank in the form of a CD. On week 53 they start to mature... reinvest the 100,000 in another 1 years CD taking the interest (or leave a little extra so next time its more) roughly (rates) 1,250 for the rest of your life every week AND u still have your Original 5.2 million... obviousl most of us I assume you included Jeffy cant come up with 100,000 every week but its a nice idea
    The Constitution was designed by the founders to save people from themselves. It never fails to amaze me how good of a job they did
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    Death don't want ya... But the Lotus do... so bring ya wicked shlt we gonna bring ours too!!!
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  8. #8
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    Re: Annuities

    I think it would be wise to have an annuity split with other investments....one thing I have been thinking is about paying into one each year with my net profit out of CMG.

    Now, I pay myself a small salary each month out of my business.

    At the end of each quarter, I have a bonus that I pay myself based on net profit. I give myself 25% of what we profited as a company as an additional draw to myself.

    I am thinking about using that bonus now to start making investments....one would be an annuity each year, and I will split that 25% up into different options such as stocks.

    So if our profit is 10 grand, that gives me a bonus of 2500. If I put half of that into a continued annuity, and the rest into the market....that annuity will grow pretty large over time.

  9. #9
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    Re: Annuities

    Quote Originally Posted by TheNamelessPoet View Post
    Do like AOW said... Buy property... MUCH better investment... You house isnt going to go bankrupt... that company can... Then what

    If you are lookin at something that is less "worrysom" do my "Lotto idea"

    lets say I have 5.2 million (just to make it easy on the #'s) Ever week for 1 year I put 100,000 in the bank in the form of a CD. On week 53 they start to mature... reinvest the 100,000 in another 1 years CD taking the interest (or leave a little extra so next time its more) roughly (rates) 1,250 for the rest of your life every week AND u still have your Original 5.2 million... obviousl most of us I assume you included Jeffy cant come up with 100,000 every week but its a nice idea
    Agreed.

    and the big thing, is that company CAN go under.

    But TNP, you can probably find something that can grow you a better interest rate than a CD, I'm sure.

    If you have 2 million, you can earn a solid 80 grand a year in interest...you just have to figure out the best course of action.

  10. #10
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    Re: Annuities

    Quote Originally Posted by Jeffy25 View Post
    Agreed.

    and the big thing, is that company CAN go under.

    But TNP, you can probably find something that can grow you a better interest rate than a CD, I'm sure.

    If you have 2 million, you can earn a solid 80 grand a year in interest...you just have to figure out the best course of action.
    Oh I am sure I could get MUCH higher returns. heck at 2% it would take my $$$ 36 years to double!!! (rule of 72) I mean HeII Vanguard's intrest on moneymarke checking acounts is higher than that once is over a certain balance. There are definatly better ways than a CD... I just thought of them because you can easily access the $$ and generaly only pay fees if there was an emergency on the interest. Bonds would be better if the rate was 2% lol. Plus there are federaly backed. I used 100,000 as a bench mark because each CD is guarenteed up to 100,000 so you don't really want to go above that... kind of a failsafe. CD's and Bonds are fedearly guarenteed... thats my point basicly... IRA's, 401K's, Annuties etc are not.
    The Constitution was designed by the founders to save people from themselves. It never fails to amaze me how good of a job they did
    haveacigar
    My Finest work!!!
    Death don't want ya... But the Lotus do... so bring ya wicked shlt we gonna bring ours too!!!
    ><((((> .`.><((((> .`.><((((>
    .`.><((((> .`.><((((>.`.><((((>.`.><((((>


  11. #11
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    Re: Annuities

    Quote Originally Posted by TheNamelessPoet View Post
    Oh I am sure I could get MUCH higher returns. heck at 2% it would take my $$$ 36 years to double!!! (rule of 72) I mean HeII Vanguard's intrest on moneymarke checking acounts is higher than that once is over a certain balance. There are definatly better ways than a CD... I just thought of them because you can easily access the $$ and generaly only pay fees if there was an emergency on the interest. Bonds would be better if the rate was 2% lol. Plus there are federaly backed. I used 100,000 as a bench mark because each CD is guarenteed up to 100,000 so you don't really want to go above that... kind of a failsafe. CD's and Bonds are fedearly guarenteed... thats my point basicly... IRA's, 401K's, Annuties etc are not.
    Someone else here knows the rule of 72 ?!!?!?!?

  12. #12
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    Re: Annuities

    Either way, you need to remain diversified.

  13. #13
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    Re: Annuities

    Quote Originally Posted by Jeffy25 View Post
    Someone else here knows the rule of 72 ?!!?!?!?
    of course... its like the golden rule of finance in my book

    Come on Jeffy... U knwo I am a capitolist thru and thru... guys like us KNOW that rule rofl
    The Constitution was designed by the founders to save people from themselves. It never fails to amaze me how good of a job they did
    haveacigar
    My Finest work!!!
    Death don't want ya... But the Lotus do... so bring ya wicked shlt we gonna bring ours too!!!
    ><((((> .`.><((((> .`.><((((>
    .`.><((((> .`.><((((>.`.><((((>.`.><((((>


  14. #14
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    Re: Annuities

    Quote Originally Posted by Jeffy25 View Post
    Either way, you need to remain diversified.
    true

    I buy
    white hookers
    black hookers
    asian hookers
    ....
    oh wait thats not what u meant
    The Constitution was designed by the founders to save people from themselves. It never fails to amaze me how good of a job they did
    haveacigar
    My Finest work!!!
    Death don't want ya... But the Lotus do... so bring ya wicked shlt we gonna bring ours too!!!
    ><((((> .`.><((((> .`.><((((>
    .`.><((((> .`.><((((>.`.><((((>.`.><((((>


  15. #15
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    Re: Annuities

    one of my first mentor's taught me that rule....

    It's so basic, so simple....and not enough people know it.

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