Comments on: What is a Variable Annuity? http://wealthpilgrim.com/variable-annuities-why-they-stink-how-to-get-out-now/ WealthPilgrim.com - A Journey To Self, Health and Wealth Tue, 07 Sep 2010 11:48:50 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Money Hacks Carnival: Swine Flu edition http://wealthpilgrim.com/variable-annuities-why-they-stink-how-to-get-out-now/comment-page-1/#comment-3647 Money Hacks Carnival: Swine Flu edition Mon, 08 Feb 2010 06:49:44 +0000 326742485#comment-3647 [...] Frankle presents Variable Annuities – Why They Stink & How To Get Out Now posted at Wealth Pilgrim: Money Management Advice, Financial Stress Management, & [...] [...] Frankle presents Variable Annuities – Why They Stink & How To Get Out Now posted at Wealth Pilgrim: Money Management Advice, Financial Stress Management, & [...]

]]> By: Neal http://wealthpilgrim.com/variable-annuities-why-they-stink-how-to-get-out-now/comment-page-1/#comment-2394 Neal Thu, 22 Oct 2009 00:09:04 +0000 326742485#comment-2394 This is maddening. Not much you can do other than tell your employer to stop playing golf with the insurance agent! That's often how 401(k)s "offer" VA's.....I believe it's completely against the interest of the employees and the only reason firms do it is because of personal relationships. This is maddening.

Not much you can do other than tell your employer to stop playing golf with the insurance agent! That’s often how 401(k)s “offer” VA’s…..I believe it’s completely against the interest of the employees and the only reason firms do it is because of personal relationships.

]]> By: michael http://wealthpilgrim.com/variable-annuities-why-they-stink-how-to-get-out-now/comment-page-1/#comment-2387 michael Wed, 21 Oct 2009 04:38:16 +0000 326742485#comment-2387 ok, here is one for you. feburary of '06 i finally get started in a 401k. i was pleased as punch to finally be doing something about my retirement. i was so pleased that i didn't pay any attention to the fact that the company had just changed from a mutual fund 401k to a VA 401k. i just "learned" this last week. Oct 15, 2009. the value of the account is about 22,750.00 i am so disappointed that i have no power to fully control my investing and that i don't understand the stupid calculus formula that describes what my income will be when i start to "withdraw." i feel like a big idiot. can't roll it over until i leave the company. i am considering discontinuation of the automatic payments from payroll and starting a separate IRA. ??? the brochure from the company...happens to be one mr. buffet recently sold his stock from...is very complicated...what happens to fools who mix up 401k plans with VAs? ok, here is one for you. feburary of ‘06 i finally get started in a 401k. i was pleased as punch to finally be doing something about my retirement. i was so pleased that i didn’t pay any attention to the fact that the company had just changed from a mutual fund 401k to a VA 401k. i just “learned” this last week. Oct 15, 2009. the value of the account is about 22,750.00 i am so disappointed that i have no power to fully control my investing and that i don’t understand the stupid calculus formula that describes what my income will be when i start to “withdraw.” i feel like a big idiot. can’t roll it over until i leave the company. i am considering discontinuation of the automatic payments from payroll and starting a separate IRA. ??? the brochure from the company…happens to be one mr. buffet recently sold his stock from…is very complicated…what happens to fools who mix up 401k plans with VAs?

]]> By: Neal Frankle http://wealthpilgrim.com/variable-annuities-why-they-stink-how-to-get-out-now/comment-page-1/#comment-1511 Neal Frankle Mon, 03 Aug 2009 14:16:04 +0000 326742485#comment-1511 Parag, Without completely discounting the comments of the people who justify VA's, I take your point. I don't agree with the folks who like the VA's but I still learn a lot from them. Thanks for taking the time to make your points as well as you did. Neal Parag,

Without completely discounting the comments of the people who justify VA’s, I take your point.

I don’t agree with the folks who like the VA’s but I still learn a lot from them.

Thanks for taking the time to make your points as well as you did.

Neal

]]> By: Parag http://wealthpilgrim.com/variable-annuities-why-they-stink-how-to-get-out-now/comment-page-1/#comment-1498 Parag Sat, 01 Aug 2009 13:16:18 +0000 326742485#comment-1498 Neal, Thanks for the article. I think what you've witnessed here are examples of the venomous repsonse people get from financial advisors ( aka insurance salesmen) when questioned about the utility of VAs. I usually find that when people's responses are particularly vehement, it usually stems from some deeper underlying insecurity about the matter being criticized. I've had the unfortunate experience of having to rehash my father's investment portfolio and have found it to be filled with nonsense such as VAs and redundant Whole Life Policies. He had a smaller annuity with another individual some time ago and most recently had his other traditional IRA rolled over into a new annuity product 3 years ago. Of course I dont have to tell you the incentive for beginning a new annuity contract. It certainly wasn't for my dad's benefit. The surrender charges are now exorbitant. Luckily, as you mention, the taxes are a nonissue due to market performance.. we are now doing the math to figure out the cost/benefit of paying up the surrender charge. Thanks again for all the work that you are doing and let the punches roll :) Oh... and if anyone else reads this... pleaseeeee dont let yourself or your loved one get swindles into a VA..Educate yourself , take control, and dont let the fearmongers and the financial institutions/establishment make you believe that you can't do this ( manage your own money ).. you certainly can. Cheers P Neal,
Thanks for the article. I think what you’ve witnessed here are examples of the venomous repsonse people get from financial advisors ( aka insurance salesmen) when questioned about the utility of VAs. I usually find that when people’s responses are particularly vehement, it usually stems from some deeper underlying insecurity about the matter being criticized.
I’ve had the unfortunate experience of having to rehash my father’s investment portfolio and have found it to be filled with nonsense such as VAs and redundant Whole Life Policies.
He had a smaller annuity with another individual some time ago and most recently had his other traditional IRA rolled over into a new annuity product 3 years ago. Of course I dont have to tell you the incentive for beginning a new annuity contract. It certainly wasn’t for my dad’s benefit.
The surrender charges are now exorbitant. Luckily, as you mention, the taxes are a nonissue due to market performance.. we are now doing the math to figure out the cost/benefit of paying up the surrender charge.
Thanks again for all the work that you are doing and let the punches roll :)
Oh… and if anyone else reads this… pleaseeeee dont let yourself or your loved one get swindles into a VA..Educate yourself , take control, and dont let the fearmongers and the financial institutions/establishment make you believe that you can’t do this ( manage your own money ).. you certainly can.
Cheers
P

]]> By: Neal http://wealthpilgrim.com/variable-annuities-why-they-stink-how-to-get-out-now/comment-page-1/#comment-988 Neal Thu, 18 Jun 2009 15:55:54 +0000 326742485#comment-988 Bob. 1. I am a licensed individual. 2. Before making libelous remarks, you might want to back them up. What is misleading? Its so easy for someone to say such things...now why don't you detail what is incorrect rather than making blanket statements. 3. What is incorrect about 10% penalties applying to withdrawals from annuities prior to age 59 1/2? 4. You are right...all annuities stink...not just VA's. Thanks for pointing that out. Bob.

1. I am a licensed individual.
2. Before making libelous remarks, you might want to back them up. What is misleading? Its so easy for someone to say such things…now why don’t you detail what is incorrect rather than making blanket statements.
3. What is incorrect about 10% penalties applying to withdrawals from annuities prior to age 59 1/2?
4. You are right…all annuities stink…not just VA’s. Thanks for pointing that out.

]]> By: Bob Farmer http://wealthpilgrim.com/variable-annuities-why-they-stink-how-to-get-out-now/comment-page-1/#comment-987 Bob Farmer Thu, 18 Jun 2009 15:34:13 +0000 326742485#comment-987 This is arguably the most incomplete and incorrect article on VA's I have ever read. Obviously not a licensed professional as the author's mis-statements would result in disciplinary action. I suggest you read the entire tax law and not mislead people with the 10% penalty law. That applies to all tax deferred programs not just VA's. Misleading and incorrect information helps no one. This is arguably the most incomplete and incorrect article on VA’s I have ever read. Obviously not a licensed professional as the author’s mis-statements would result in disciplinary action. I suggest you read the entire tax law and not mislead people with the 10% penalty law. That applies to all tax deferred programs not just VA’s.

Misleading and incorrect information helps no one.

]]> By: This Week in Review, Getting Well Edition | The Personal Finance Playbook http://wealthpilgrim.com/variable-annuities-why-they-stink-how-to-get-out-now/comment-page-1/#comment-896 This Week in Review, Getting Well Edition | The Personal Finance Playbook Fri, 12 Jun 2009 12:05:26 +0000 326742485#comment-896 [...] Why Variable Annuities Stink @ Wealth Pilgrim – This is why variable annuities stink.  The fees are ridiculous.  Don’t buy them.  Save your money.  Multiple studies will show you how much fees diminish your returns. [...] [...] Why Variable Annuities Stink @ Wealth Pilgrim – This is why variable annuities stink.  The fees are ridiculous.  Don’t buy them.  Save your money.  Multiple studies will show you how much fees diminish your returns. [...]

]]> By: Money Hacks Carnival 68- Stanley Cup Final Edition | Financial Highway http://wealthpilgrim.com/variable-annuities-why-they-stink-how-to-get-out-now/comment-page-1/#comment-872 Money Hacks Carnival 68- Stanley Cup Final Edition | Financial Highway Wed, 10 Jun 2009 09:04:46 +0000 326742485#comment-872 [...] Frankle presents Variable Annuities - Why They Stink & How To Get Out Now posted at Wealth Pilgrim: Money Management Advice, Financial Stess Management, Addiction Recovery [...] [...] Frankle presents Variable Annuities – Why They Stink & How To Get Out Now posted at Wealth Pilgrim: Money Management Advice, Financial Stess Management, Addiction Recovery [...]

]]> By: » How To Make Smart Tax-Advantaged Investment Decisions http://wealthpilgrim.com/variable-annuities-why-they-stink-how-to-get-out-now/comment-page-1/#comment-612 » How To Make Smart Tax-Advantaged Investment Decisions Wed, 13 May 2009 17:01:43 +0000 326742485#comment-612 [...] tax advantages, most people would not buy those particular investments. Tax-free bonds, fixed and variable annuities are [...] [...] tax advantages, most people would not buy those particular investments. Tax-free bonds, fixed and variable annuities are [...]

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