"kastnna" <kastnna@[EMAIL PROTECTED]
> wrote
snip but all comments read
> The 10 year requirement is a hollow threat, but to be
> fair, it is the
> most common misunderstanding I run into with these
> annuities.
I can't imagine why it would be so misunderstood. <big
wink!>
> I completely agree they are complicated and they are not
> for everyone
> (or for most, even). However, I don't agree that
> complexity
> necessarily means profiteering.
I'd say this is a philosophical question. But for what it is
worth, remember I entered this thread plugging low fee
annuities (for one) as more of an insurance product, not an
investment product. Where insurance buys peace of mind, it
can be a good thing yada.
> The insurance company profits by
> charging the M&E fees. They also promise to pay later, but
> they have
> your money today. Consider a case of putting in $100k and
> leaving it
> for ten years: Under the GMIB, they owe you at least
> $196k, but
> they've had your money for a decade with which they
> hopefully made
> more than 6% with.
I trust you mean the company made more than the max of
either 6% or the S&P 500 less 3%. It was the guarantee of
getting the S&P 500 (less 3%) in good years that I found
appealing. Maybe that's changing a little?
Thanks for the long explanations. But ya know, if anything,
they make me more hesitant to purchase an annuity. So many
strings attached. So many more decisions, requiring a fair
amount of research to do right, to make in the future.
Just saying as your average college+ and numbers educated
consumer/individual investor.
Aside: I do not think you really posted out of order. You
responded to Don's post first, not mine, which is fine. I
understood what was going on. Oh and by the way thanks also
for using proper acronym writing rules. It really helps the
reader to first spell out the acronym's words, following
them with the acronym in parentheses, as you did with
"GMIB." Shows you know something about writing!
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