Clark is SPOT ON. There are many "financial advisors" who push annuities and make them sound less troublesome than they really are. My parents were victims of an awful shady financial advisor, who still since the 1980s has and has had many cases against him but somehow is still allowed to conduct business.
I’m a 63 year old CPA who did a lot of research before buying a simple, immediate single life annuity from a top rated company. No life insurance, no investment options - about as cheap and plain vanilla as you can get. It gives me a fixed, guaranteed monthly income for life - like a pension. It’s inside a Roth IRA so that monthly income is tax free. I understand it thoroughly and am very happy with it.
When I looked into these, I discovered that the person selling them only knows enough to get the sale. They are granted an insurance license only so the company can claim licensed reps selling. Instead we should refer to those selling them as salesman, not insurance agents. I know more about insurance than most of those salespeople, which is essentially nothing.
I agree with you for most of the reasons you mentioned. I have one that is great for one thing. It has a fixed income option that guarantees a minimum of 2% interest. That has been great when the interest rates on savings accounts has been lower. Several years ago my financial advisor recommended one to me for the purpose of having somewhere to keep my RMDs. It had a large minimum purchase amount but they still let me buy one with only a $10 a month recurring deposit. I stopped it once I had the account minimum of $300. It also had a surrender fee for the first ten years. That was not an issue for me since I opened it long before the age of RMDs. I found another use for it. I kept my emergency fund in it until interest rates went above 2%. Currently it is in a money market account at 5%+. When interest rates go back down I will transfer it back.
A fixed annuity with a 7 year surrender deffered tax at 5.25% compounded, a 10% withdrawal per year allowable without a surrender charge, no fees and guaranteed by an A+ A.M.Best insurance company. What's the catch?
I bought an Annuity 25 years ago. Now that I am trying to retire and need the money. The person who sold it to me won't help me. This annuity had life insurance included in it. Never asked him for life insurance. But paid for it all these years. Only wanted the most money I could get when I retired. Who could I go to for help?
I have an annuity that I have been receiving a monthly payment for 15 years. It will continue to pay me for the rest of my life. I purchased the annuity with $100,000 The total I have received is $179,000. It is an IRA so of course taxable. But even a pension is really just an annuity. Social Security is an expensive annuity. So what if someone made a commission. The commission isn't coming from your principal.
@@habbadabbado5765 the last 15 years have been amazing and a true anomaly. What’s interesting is that if you invested that same amount 16 years ago you’d actually have well over $100k less. No doubt you’d have done better but depending on when you start investing makes a huge difference. Some people (like myself and my parents) who lost over 30% of their retirement in 2000 and then got slammed again in 2008 needed some peace of mind and putting a portion of their retirement into index annuities served that purpose very well. Many of us could not risk the market dropping again closing in on retirement. Covid and stimulus helped bypass a needed correction on the market and the crash may be a few years away, but it’s way over valued due to the government printing more way and buying securities to inflate everything beyond where it makes sense. If you’re young, you can probably ride out the next crash and make a great return. Those who put money in the market before the .com crash many years to recover their principal before it started gaining again and some annuities (if used properly) can really help protect retirement losses. I sure hope the market continues to stay on track as many retirees will suffer if we see anything like 2000 and 2008 corrections now.
I wonder if block chain technology has some features that would allow a new and improved annuity that wouldn't have all the cons. Basically annuities are a form of insurance.
A 403B is an account in which someone holds their retirement funds with an employer that is a public school, church or similar organization. He could have those retirement funds invested in the offerings by the 403b, so he should know.
I have had good success with annuities. You have to be selective, but for many situations they are an excellent product providing an excellent result. I am not associated with the industry, but Clarke has a vendetta against them that I don't quite understand. Have an open mind. Clarke does not know all! 😅
A helpful source on You Tube for learning about the structure of annuitiies, how they work, the good and the bad of them and good tips for how you can be in control of the selecting the annuity you are interested is "Stan the Annuity Man." I have not used him for selecting one as I have an annuity inherited from my parents. However, from him I have learned a lot about them which has also helped me strengthen the questions I submit to my carrier for annual selection decision and for the year in which it matures.
You hate all annuities, what about MYGA's ? Annuities are Insurance and not an Investment product and should be used to insure against certain types of risk. The stock market cannot match the right annuity used for the right purpose. And as far as the salespeople, I have found the lack of ethics on both the insurance side and Investment side of the house. Way too many so called "advisors" act in their own best self interest. Sometimes even those with UA-cam Channels.
Clark is SPOT ON.
There are many "financial advisors" who push annuities and make them sound less troublesome than they really are. My parents were victims of an awful shady financial advisor, who still since the 1980s has and has had many cases against him but somehow is still allowed to conduct business.
I’m a 63 year old CPA who did a lot of research before buying a simple, immediate single life annuity from a top rated company. No life insurance, no investment options - about as cheap and plain vanilla as you can get. It gives me a fixed, guaranteed monthly income for life - like a pension. It’s inside a Roth IRA so that monthly income is tax free. I understand it thoroughly and am very happy with it.
You are a very generous man! Hopefully your agent is very grateful for the money they are making.
My suspicion is that Reverse Mortgages also have 200-page contracts.
When I looked into these, I discovered that the person selling them only knows enough to get the sale. They are granted an insurance license only so the company can claim licensed reps selling. Instead we should refer to those selling them as salesman, not insurance agents. I know more about insurance than most of those salespeople, which is essentially nothing.
I agree with you for most of the reasons you mentioned. I have one that is great for one thing. It has a fixed income option that guarantees a minimum of 2% interest. That has been great when the interest rates on savings accounts has been lower. Several years ago my financial advisor recommended one to me for the purpose of having somewhere to keep my RMDs. It had a large minimum purchase amount but they still let me buy one with only a $10 a month recurring deposit. I stopped it once I had the account minimum of $300. It also had a surrender fee for the first ten years. That was not an issue for me since I opened it long before the age of RMDs. I found another use for it. I kept my emergency fund in it until interest rates went above 2%. Currently it is in a money market account at 5%+. When interest rates go back down I will transfer it back.
This video should be viewed by anyone that knows someone who is talking abought buying an annuity.
A fixed annuity with a 7 year surrender deffered tax at 5.25% compounded, a 10% withdrawal per year allowable without a surrender charge, no fees and guaranteed by an A+ A.M.Best insurance company. What's the catch?
I bought an Annuity 25 years ago. Now that I am trying to retire and need the money. The person who sold it to me won't help me. This annuity had life insurance included in it. Never asked him for life insurance. But paid for it all these years. Only wanted the most money I could get when I retired. Who could I go to for help?
Insurance companies are regulated by the states, so find out which agency that is in your state.
I have an annuity that I have been receiving a monthly payment for 15 years. It will continue to pay me for the rest of my life. I purchased the annuity with $100,000 The total I have received is $179,000. It is an IRA so of course taxable. But even a pension is really just an annuity. Social Security is an expensive annuity. So what if someone made a commission. The commission isn't coming from your principal.
What type of annuity did you get?
He said annuity as pension payments for life are ok...annuity not good as investment
Do you realize if you invested that $100,000 in the S&P500 15 years ago, it would now be worth $782,000?
@@habbadabbado5765 the last 15 years have been amazing and a true anomaly. What’s interesting is that if you invested that same amount 16 years ago you’d actually have well over $100k less. No doubt you’d have done better but depending on when you start investing makes a huge difference. Some people (like myself and my parents) who lost over 30% of their retirement in 2000 and then got slammed again in 2008 needed some peace of mind and putting a portion of their retirement into index annuities served that purpose very well. Many of us could not risk the market dropping again closing in on retirement. Covid and stimulus helped bypass a needed correction on the market and the crash may be a few years away, but it’s way over valued due to the government printing more way and buying securities to inflate everything beyond where it makes sense. If you’re young, you can probably ride out the next crash and make a great return. Those who put money in the market before the .com crash many years to recover their principal before it started gaining again and some annuities (if used properly) can really help protect retirement losses. I sure hope the market continues to stay on track as many retirees will suffer if we see anything like 2000 and 2008 corrections now.
Thanks for making everything clear, Clark!
This video really helps 😊
Sounds like Clark got "Sold" by an agent😄
I wonder if block chain technology has some features that would allow a new and improved annuity that wouldn't have all the cons. Basically annuities are a form of insurance.
Thanks for your explanation and breakdown.
I have an Allianz Fixed Index Annuity and only getting 2.74% after 8 years. My Stock Index Funds are getting 9%. Time to get out of annuities.
What about the Fixed Deferred Annuity that is like a CD?
If it’s like a CD…..Then why not get a CD without all the fees, charges and penalties?
It’s sad that federal employees are targeted by these types of people. All the retirement seminars are sponsored by insurance companies.
Those TSP accounts are juicy targets for these insurance predators
My husband had a 403B. Is that the same a an annuity?
A 403B is an account in which someone holds their retirement funds with an employer that is a public school, church or similar organization. He could have those retirement funds invested in the offerings by the 403b, so he should know.
Excellent video Clark, more needs to be said about annuities to keep people away from them!
This should be pinned somewhere so people can see it!
I have had good success with annuities. You have to be selective, but for many situations they are an excellent product providing an excellent result.
I am not associated with the industry, but Clarke has a vendetta against them that I don't quite understand.
Have an open mind. Clarke does not know all! 😅
Explain good success. The fact that the only ones selling them are insurance companies, tells you all you need to know.
I@@HDHQDIRECT Annuities are an insurance product, Cletus.😊
A helpful source on You Tube for learning about the structure of annuitiies, how they work, the good and the bad of them and good tips for how you can be in control of the selecting the annuity you are interested is
"Stan the Annuity Man." I have not used him for selecting one as I have an annuity inherited from my parents. However, from him I have learned a lot about them which has also helped me strengthen the questions I submit to my carrier for annual selection decision and for the year in which it matures.
You hate all annuities, what about MYGA's ? Annuities are Insurance and not an Investment product and should be used to insure against certain types of risk. The stock market cannot match the right annuity used for the right purpose. And as far as the salespeople, I have found the lack of ethics on both the insurance side and Investment side of the house. Way too many so called "advisors" act in their own best self interest. Sometimes even those with UA-cam Channels.
Any high commission product is designed for the seller, not the buyer.
@@rustynail7866 MYGAS , have low commissions, Einstein
Yes, getting a steady flow of income every month really stinks. 😂. What a douche.
He said annuity good as fixed pension, not good as investment
Annuities are only second to crypto as far as bad investments!