Comments on: Suze on Variable Annuities http://www.joetaxpayer.com/suze-on-variable-annuities/ Financial Commentary For The Average Joe Mon, 06 Feb 2012 21:56:17 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Larry http://www.joetaxpayer.com/suze-on-variable-annuities/comment-page-1/#comment-32801 Larry Thu, 29 Dec 2011 01:57:15 +0000 http://www.blog.joetaxpayer.com/?p=174#comment-32801 Variable Annuities are a scam. I was told I would get 7% on my GRIB, but they never explained that this 7% increase was not to be paid out to me, it will be paid according to the insurance companiews desires. It would take 10 years to get back exactly my original lump sum invested 10 years prior, at a 7% rate. If I put this money in at 50 years old and it takes till I am 70 to get my own money back and I also will betaxed on my own money for this 10 year period, I need to live to be about 74 years old before I began to make one penny of the promised 7% interset rate. If I die after this period and don't live to be 95 years old I will never see the promised 7% rate. If I consider inflation into this factor over thirty years I actually am losing money, This is such shell game of where is my money, it is not under any of ythe shells it is in the insurance agents pockets. On top of this they are charging me 4% and I only discovered this little ditty after 7 years, since it never disclosed this cost on my quarterly statements. Where is the SEC (Security and Exchange Commission) when it comes to these rip off products and fedreral consumer protection disclosures? Variable Annuities are a scam. I was told I would get 7% on my GRIB, but they never explained that this 7% increase was not to be paid out to me, it will be paid according to the insurance companiews desires. It would take 10 years to get back exactly my original lump sum invested 10 years prior, at a 7% rate.
If I put this money in at 50 years old and it takes till I am 70 to get my own money back and I also will betaxed on my own money for this 10 year period, I need to live to be about 74 years old before I began to make one penny of the promised 7% interset rate. If I die after this period and don’t live to be 95 years old I will never see the promised 7% rate. If I consider inflation into this factor over thirty years I actually am losing money, This is such shell game of where is my money, it is not under any of ythe shells it is in the insurance agents pockets. On top of this they are charging me 4% and I only discovered this little ditty after 7 years, since it never disclosed this cost on my quarterly statements. Where is the SEC (Security and Exchange Commission) when it comes to these rip off products and fedreral consumer protection disclosures?

]]> By: JOE http://www.joetaxpayer.com/suze-on-variable-annuities/comment-page-1/#comment-32046 JOE Sat, 19 Nov 2011 01:46:37 +0000 http://www.blog.joetaxpayer.com/?p=174#comment-32046 As I've mentioned, the prospectus for most VAs is not available so easily (what are they hiding?). No, I never heard from Steve. As I’ve mentioned, the prospectus for most VAs is not available so easily (what are they hiding?). No, I never heard from Steve.

]]> By: Deborah http://www.joetaxpayer.com/suze-on-variable-annuities/comment-page-1/#comment-31498 Deborah Wed, 26 Oct 2011 21:15:50 +0000 http://www.blog.joetaxpayer.com/?p=174#comment-31498 Steve on Dec 10, 2010 asked you about Penn Freedom Variable Annuity. You asked him to forward the prospectus. Did he provide it? I moved 1/2 my 401(k) to the Penn Freedom Variable Annuity in Sept. 2008 with a Guaranteed Minimum Accumulation Benefit on my opening balance of $126,153 with a Guaranteed Ann. Lifetime Withdrawal Amount (5%) and a Guaranteed Annual Withdrawal Amount (7%). In Aug, 2011, my Penn Mutual fin. advisor advised me to switch 100% of my account (currently split between the Independence Capital Mgmt Wuality Bond, T.Rowe Price Associates Flexibly Managed Fund, and Vonobel Asses Mgmt Int'l Equity) to the Limited Maturity Bond Fund. I questioned the lack of diversity in doing this. What advice can you give me about his recommendation and the Penn Freedom Variable Annuity? Steve on Dec 10, 2010 asked you about Penn Freedom Variable Annuity. You asked him to forward the prospectus. Did he provide it? I moved 1/2 my 401(k) to the Penn Freedom Variable Annuity in Sept. 2008 with a Guaranteed Minimum Accumulation Benefit on my opening balance of $126,153 with a Guaranteed Ann. Lifetime Withdrawal Amount (5%) and a Guaranteed Annual Withdrawal Amount (7%). In Aug, 2011, my Penn Mutual fin. advisor advised me to switch 100% of my account (currently split between the Independence Capital Mgmt Wuality Bond, T.Rowe Price Associates Flexibly Managed Fund, and Vonobel Asses Mgmt Int’l Equity) to the Limited Maturity Bond Fund. I questioned the lack of diversity in doing this. What advice can you give me about his recommendation and the Penn Freedom Variable Annuity?

]]> By: JOE http://www.joetaxpayer.com/suze-on-variable-annuities/comment-page-1/#comment-31010 JOE Tue, 20 Sep 2011 23:30:49 +0000 http://www.blog.joetaxpayer.com/?p=174#comment-31010 I'd need to see the exact cost and promises to comment intelligently. I've yet to meet a VA I really like, nearly all should be avoided. I’d need to see the exact cost and promises to comment intelligently. I’ve yet to meet a VA I really like, nearly all should be avoided.

]]> By: Debbie http://www.joetaxpayer.com/suze-on-variable-annuities/comment-page-1/#comment-30954 Debbie Sat, 17 Sep 2011 23:48:38 +0000 http://www.blog.joetaxpayer.com/?p=174#comment-30954 Joe - I was just presented with a Met Life Variable Annuity. It has several riders including GMIB Max and EDB max (GMIB Guaranteed Minimum Income Benefit and EDB Enhanced Death Benefit). Do you have thoughts on this? Joe – I was just presented with a Met Life Variable Annuity. It has several riders including GMIB Max and EDB max (GMIB Guaranteed Minimum Income Benefit and EDB Enhanced Death Benefit). Do you have thoughts on this?

]]> By: JOE http://www.joetaxpayer.com/suze-on-variable-annuities/comment-page-1/#comment-30390 JOE Sun, 07 Aug 2011 18:54:51 +0000 http://www.blog.joetaxpayer.com/?p=174#comment-30390 Yes, the withdrawal you cite is not like an RMD, you should be able to transfer a bit at a time if you wish. Yes, the withdrawal you cite is not like an RMD, you should be able to transfer a bit at a time if you wish.

]]> By: Denis Zundel http://www.joetaxpayer.com/suze-on-variable-annuities/comment-page-1/#comment-30375 Denis Zundel Fri, 05 Aug 2011 20:16:28 +0000 http://www.blog.joetaxpayer.com/?p=174#comment-30375 My question pertains to Indexed VA's, can the annual 10 to 15% allowable partial withdrawal proceeds be 1035'd into another annuity to continue with the tax deferrals? Thanks My question pertains to Indexed VA’s, can the annual 10 to 15% allowable partial withdrawal proceeds be 1035′d into another annuity to continue with the tax deferrals? Thanks

]]> By: JOE http://www.joetaxpayer.com/suze-on-variable-annuities/comment-page-1/#comment-26369 JOE Wed, 15 Dec 2010 16:29:36 +0000 http://www.blog.joetaxpayer.com/?p=174#comment-26369 Are you able to forward the prospectus? As you've read, I'm pretty anti-VA. I'd need to read the exact details to understand how to comment on it. Are you able to forward the prospectus?
As you’ve read, I’m pretty anti-VA. I’d need to read the exact details to understand how to comment on it.

]]> By: Steve http://www.joetaxpayer.com/suze-on-variable-annuities/comment-page-1/#comment-26177 Steve Mon, 13 Dec 2010 07:01:56 +0000 http://www.blog.joetaxpayer.com/?p=174#comment-26177 Joe, Have you looked at the Penn Mutual Freedom Variable Annuity? We have 250k to invest in IRA/401k money and another 100k in unqualified cash after my dad's passing (mom still around). This product was presented to us. If not this then just make sure the 250k is invested in conservative mutual funds and bonds? And then same with 100k? Thanks in advance for any advice. Joe,

Have you looked at the Penn Mutual Freedom Variable Annuity? We have 250k to invest in IRA/401k money and another 100k in unqualified cash after my dad’s passing (mom still around). This product was presented to us. If not this then just make sure the 250k is invested in conservative mutual funds and bonds? And then same with 100k? Thanks in advance for any advice.

]]> By: JOE http://www.joetaxpayer.com/suze-on-variable-annuities/comment-page-1/#comment-20607 JOE Fri, 28 May 2010 22:50:59 +0000 http://www.blog.joetaxpayer.com/?p=174#comment-20607 I respect other's views, but I have yet to see a VA product that was superior to most of the alternatives, the guarantee coming at too high a price. I appreciate your comment. I respect other’s views, but I have yet to see a VA product that was superior to most of the alternatives, the guarantee coming at too high a price. I appreciate your comment.

]]>