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Report this Comment On September 15, 20xx, at 8:28 PM, Xxxxxxxxx wrote:
What about this concept about "legal reserve"? Each company is supposed to have more on deposit than in policies. Additionally, the financial trouble of a parent company cannot lead to the looting of this
annuity company's balance sheet. Any comments?
Report this Comment On September 16, 20xx, at 10:14 AM, Xxxxxxxxxx wrote:
It makes me crazy everytime one of you stock pushers want to slam insurance products. What's the matter, can't sleep at night because you cost that senior their entire portfolio? If you had $100,000 in the Dow 10 years ago you would have $121,557 today…now if you had placed those funds in an annuity you would have $248,129 today…I'll take the annuity. Numbers don't lie! Granted a Fixed annuity is not for everyone, and I would NEVER recommend a variable annuity to one of my clients…but if you have a 401K or IRA…it may very well be the safe and sane move you need to make.
Your article is designed to frighten folks away from annuities…By scaring them into thinking their money isn't safe, it's safer than the bank! And more productive. Well, lets look at a couple thing…in the bank, they have to have 3 cents, yes that's right, 3 cents on reserve for every dollar of money invested with them, ie your CD, Savings, etc. FDIC what does that stand for? Federal Deposit INSURANCE Company.
HMMMM…you have an INSURANCE company, INSURING the bank deposit. And in the next sentence you are slaming INSURANCE companies. Well my friend, FDIC has 20 years to pay you back those funds. They are no longer rated, because their rating was so bad. You are only insured up to $100,000. And let's look at that great interest rate your client is getting at the bank…hm..1-2%? Well, inflation has just eaten that up and your client will be taxed on the interest received each year, so now they are in the hole! Yes, your advise is very sound financially, makes nothing but sense to put my money in a CD and pay the government to keep it there while I lose money with inflation. Yes, that's bright.
Now let's take a look at your insurance part of your portfolio. Every INSURANCE company must have a reserve on hand that is more than equal to their client's investments. The problem with AIG is they got into the broker business, wallowed with the pigs on wall street and they are scrambling to pull their fat out of the fire.
Yes, take a look at your insurance company, find out what their reserves are, ask a LICENSED INSURANCE AGENT, NOT A BROKER for a recommendation. That recommendation should be made after a careful review of your entire financial situation. If that agent recommends that you put your entire portfolio into a single insurance product, walk out. You should always be diversified, you should always have cash on hand, 6 months reserve in the bank and then a carefully designed portfolio of products to address your goals.
I cannot tell you the number of clients that are ringing me off the hook yesterday and today, wanting to roll their investment money off wall street. I sleep at night, my client's sleep at night, those that made
the move last year when I predicted that the DOW would drop into the 10K range are sleeping at night, they call me giddy with delight. How many of your Brokerage clients are calling you…I bet your phone is ringing off the hook too…with unhappy customers, people who placed their trust in you and have lost their life savings. Shameful.
And folks, get ready, it's not over. I think we will see a freefall into the 9000 range. You have a housing market that has not hit bottom, we are only half way there if that and you have the largest population in history hitting retirement age in 2011, drawing on the social security system and medicare. This country is in for a long hard ride, hold on Alice!
Report this Comment On September 16, 20xx, at 10:20 AM, Xxxxxxxxxxx wrote:
oh, and your money…in a FIXED annuity…grows TAX DEFERRED! You are actually triple compounding, and if you are receiving social security and being taxed on those funds, you may actually be able to
relieve a portion or all of that tax burden by shifting your portfolio to Annuities. NO WONDER the SEC is working like a dog to try to get FIA's into their purview. Their brokers have little ability to make money
for their clients in this market so they have to scramble for a product that will work. Pathetic.
Please call or email me for more information on Fixed Index Annuities
Chris Couchon
RI Licensed Agent # 2080501
NIPR # 14967438
401-585-3582
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Report this CommentOn September 15, 2008, at 8:28 PM, jamesboss wrote: