Comments for Annuity Straight Talk

Comment on What is a Hybrid Income Annuity? by Andy

Andy — Mon, 13 Feb 2012 03:26:01 +0000

Very informative post. Like what you have said “I’d rather see it done right and end up with happy, knowledgeable clients.” Thanks for sharing.
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Comment on Funding The Post Pension Retirement- Wall Street Journal by Bryan

Bryan — Mon, 31 Oct 2011 16:49:01 +0000

Marilyn,

In short, I support the purchase of any annuity contract so long as the consumer is fully aware of all aspects of the specific contract in question. Having said that, the Aviva BPA Select 12 is fairly complicated in many regards. Account value crediting methods and resets will have a significant impact on all around performance.

This income benefit is competitive and shouldn’t be a concern but the account performance is what will determine the level of income increases if any and the additional cash available in the future as well as how much money will be left to your heirs.

Before moving forward you’ll need to understand how these can affect your long-term goals and whether the probability of total success matches your intentions today.

For more information or a detailed analysis please call or email me directly.

Thanks for the question!

Comment on Funding The Post Pension Retirement- Wall Street Journal by marilyn santiago

marilyn santiago — Tue, 25 Oct 2011 17:11:34 +0000

What do you think of the Aviva BPA select annuity 12?
thank you, Marilyn

Comment on Is the Secondary Market Too Good To Be True? by Joe Simonds

Joe Simonds — Sat, 10 Sep 2011 12:31:04 +0000

Bryan, great article on SMIA's. It is pretty clear why you do so well with these. I think you understand them better than anyone out there. I am going to reference this blog with some of the advisors I work with to get a better understanding on how SMIA's work, why they aren't too good to be true, and who they are a fit for.

Keep up the great work Bryan.

Joe

Comment on Fixed Annuity by Why I Like Fixed Annuities | fixed rate

Why I Like Fixed Annuities | fixed rate — Fri, 26 Aug 2011 00:00:45 +0000

[...] Bryan J. Anderson is the Author of The Annuity Report at AnnuityStraightTalk.com, and offers great free resources and Annuity Information. Bryan is not afraid to stand up and talk about often maligned Fixed Annuities [...]

Comment on Why This Crisis Differs From the 2008 Version- Great Wall Street Journal Piece by Nathaniel

Nathaniel — Tue, 23 Aug 2011 21:59:58 +0000

Done- sorry for the oversight!

Comment on Why This Crisis Differs From the 2008 Version- Great Wall Street Journal Piece by Jay

Jay — Mon, 22 Aug 2011 03:53:18 +0000

Hello. Could you please post the date of the articles? Thanks.

Comment on Annuities and the Puzzle of Income- New York Times by Don Brammeier

Don Brammeier — Sun, 07 Aug 2011 16:57:20 +0000

Ted,
Are you really receiving 8% compounding annually – or- are you receiving 8% of your ORIGINAL investment each year?
I've been looking at Aviva's Multichoice Lifetime Solutions Annuity and was told that I would receive 8% interest each year BUT no one stated that it was only 8% of the original investment and NOT compounded. Sort of misleading don't you think. Almost makes me thing of fraud OR at least lying by omission.
I wonder what else I have missed that they are not telling me!

Comment on What is a Hybrid Income Annuity? by Nathaniel

Nathaniel — Fri, 29 Jul 2011 18:39:01 +0000

Nelson-
You are quite right in your analysis- with a hybrid annuity you are purchasing primarily the guarantee, the set and forget peace of mind. As such, the products ARE valuable and do serve a purpose, however for you, you are looking at it as an accumulation and growth vehicle, and that is not its strongest attribute.

As with anything that tries to be all things to all people, there definitely shortcomings. You are absolutely right to point out that using a different strategy for you deferral period can be more lucrative. We happen to think Secondary Market Annuities are the best available option currently, with rates of 7% or better for some of the longer term deferral products, and guaranteed by top rated companies.

So re-do you analysis assuming a 10 year deferral in a Secondary Market Annuity at 6.5% Then after your deferral period, at that time convert the lump sum generated by the SMA (or fixed annuity, or CD) into guaranteed LIFETIME income and buy the benefits of longevity insurance, with an immediate annuity. you can check the available SMA contracts here: http://www.annuitystraighttalk.com/secondary-market-annuities/current-availability/

I think you will find this to be the most lucrative strategy available anywhere, yet still with rock solid guarantees. Assuming you are 82 when you buy an immediate annuity, look at the guaranteed lifetime income then… it’ll be significantly higher income than any hybrid plan can offer today.

Comment on What is a Hybrid Income Annuity? by Nelson Champine

Nelson Champine — Fri, 29 Jul 2011 13:50:00 +0000

What is a guaranteed rate REALLY worth?
Looking at the so-called "Hybrid Income Annuities" in their best case guaranteed scenarios.
Income Floor grows at 8% per year.
Withdrawal rates of 7% from the Income account at age 80 plus (6% at age 70 to 74 and 6.5% at age 75 to 79).
So after 10 years at age 82 (using my DOB) the Income Account Value would be $215892.50 giving a yearly annuity of $15112.47(7% of the Account Value).
But….even though the 8% growth and 7% withdrawal sound like nice high numbers, plugging that withdrawal amount into AnnuityShopper dot com, give a deposit needed to get that withdrawal to be $116716.40, a growth rate of 1.56% for the 10 year period according to the Return Rate CAGR calculator at MoneyChimp dot com.
A 10 year CD at 3% or a Fixed Deferred Annuity at 3.75% would give much better guaranteed returns then the Hybrid Income Plans.