Anonymous
Post 08/11/2023 09:08     Subject: Annuity
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:No they are not worth it. Only worth it to the broker who is selling it to you. What it is; you invest a chunk of money, say $1 million. You are guaranteed an amount of money every month or year for life, say $50,000 per year for life.

Why it's bad; broker gets a big commission, and you can do better investing your money in an index fund for example, and get more than $50,000 per year



Can you give me example of index fund


VTSAX is very popular and tracks total US stock market. FNCMX tracks tech heavy NASDAQ, FXAIX tracks S&P 500 as examples.

-dp




Do u think it is okay to put money in index fund while market is high?
Anonymous
Post 08/11/2023 07:39     Subject: Annuity
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:No they are not worth it. Only worth it to the broker who is selling it to you. What it is; you invest a chunk of money, say $1 million. You are guaranteed an amount of money every month or year for life, say $50,000 per year for life.

Why it's bad; broker gets a big commission, and you can do better investing your money in an index fund for example, and get more than $50,000 per year


Assuming you are an investment wizard, how are you going to take care of longevity risk?

What risk? The million throws off way over fifty thousand forever. You have so much more control depending on how economy is doing. You can even leave extra in the account and let that grow. God help us all. Why isn't money taught in school.


FSA and CFA here. Thank you for the lecture, the school that taught you money apparently ended a few years early.
Anonymous
Post 08/11/2023 07:21     Subject: Annuity
Anonymous wrote:
Anonymous wrote:No they are not worth it. Only worth it to the broker who is selling it to you. What it is; you invest a chunk of money, say $1 million. You are guaranteed an amount of money every month or year for life, say $50,000 per year for life.

Why it's bad; broker gets a big commission, and you can do better investing your money in an index fund for example, and get more than $50,000 per year


Assuming you are an investment wizard, how are you going to take care of longevity risk?

What risk? The million throws off way over fifty thousand forever. You have so much more control depending on how economy is doing. You can even leave extra in the account and let that grow. God help us all. Why isn't money taught in school.
Anonymous
Post 08/11/2023 03:30     Subject: Annuity
If it’s a savings vehicle to defer taxes instead of one to have an income stream is it a good idea?
Anonymous
Post 08/10/2023 23:03     Subject: Annuity
Anonymous wrote:No they are not worth it. Only worth it to the broker who is selling it to you. What it is; you invest a chunk of money, say $1 million. You are guaranteed an amount of money every month or year for life, say $50,000 per year for life.

Why it's bad; broker gets a big commission, and you can do better investing your money in an index fund for example, and get more than $50,000 per year


If you get one through the TSP there is no commission. It can make sense anyway under certain conditions. But I agree it is not for most people. And don’t let anyone sell you one.
Anonymous
Post 08/10/2023 22:54     Subject: Annuity
Put the same amount of money in index funds, let them compound and grow, only take out 3% each year, so you won't touch the initial invested money and they should be able to keep growing.
Anonymous
Post 08/10/2023 22:08     Subject: Annuity
Anonymous wrote:No they are not worth it. Only worth it to the broker who is selling it to you. What it is; you invest a chunk of money, say $1 million. You are guaranteed an amount of money every month or year for life, say $50,000 per year for life.

Why it's bad; broker gets a big commission, and you can do better investing your money in an index fund for example, and get more than $50,000 per year


Assuming you are an investment wizard, how are you going to take care of longevity risk?
Anonymous
Post 08/10/2023 22:02     Subject: Annuity
Anonymous wrote:
Anonymous wrote:No they are not worth it. Only worth it to the broker who is selling it to you. What it is; you invest a chunk of money, say $1 million. You are guaranteed an amount of money every month or year for life, say $50,000 per year for life.

Why it's bad; broker gets a big commission, and you can do better investing your money in an index fund for example, and get more than $50,000 per year



Can you give me example of index fund


VTSAX is very popular and tracks total US stock market. FNCMX tracks tech heavy NASDAQ, FXAIX tracks S&P 500 as examples.

-dp
Anonymous
Post 08/10/2023 21:52     Subject: Annuity
Anonymous wrote:No they are not worth it. Only worth it to the broker who is selling it to you. What it is; you invest a chunk of money, say $1 million. You are guaranteed an amount of money every month or year for life, say $50,000 per year for life.

Why it's bad; broker gets a big commission, and you can do better investing your money in an index fund for example, and get more than $50,000 per year



Can you give me example of index fund
Anonymous
Post 08/10/2023 20:41     Subject: Annuity
No they are not worth it. Only worth it to the broker who is selling it to you. What it is; you invest a chunk of money, say $1 million. You are guaranteed an amount of money every month or year for life, say $50,000 per year for life.

Why it's bad; broker gets a big commission, and you can do better investing your money in an index fund for example, and get more than $50,000 per year
Anonymous
Post 08/10/2023 19:30     Subject: Annuity
An SPIA. Can be useful if your concern is having enough income and you don’t need to worry about an inheritance.
Anonymous
Post 08/10/2023 19:22     Subject: Annuity
There are many types. Some are income streams, some are savings vehicles. Some are good and useful, some are bad. What are you looking at?
Anonymous
Post 08/10/2023 19:21     Subject: Annuity
https://en.m.wikipedia.org/wiki/Annuity

You don't offer any info, so no one can offer you useful advice.
Anonymous
Post 08/10/2023 19:20     Subject: Annuity
Constant monthly income stream and no I don’t recommend it
Anonymous
Post 08/10/2023 18:58     Subject: Annuity
What is exactly annuity and do u reccomend it