Be EXTREMELY careful going this route. There are decent ones..... and a LOT of bad ones.
Be EXTREMELY careful going this route. There are decent ones..... and a LOT of bad ones.
Me too
I used to have access to about 25-30 companies that offered annuities in my business, all but 4-5 offered garbage IMO. There are some "good" ones, you can get ones with a limited term contract. Problem is that guys were going out and getting people to put their entire nest egg in them when the stock market took a dive years back. They are a piece of the puzzle just like anything else. They are somewhat of an option to long term care because LTC insurance is horribly expensive now. They have riders they can attach that will allow you to pull more income if you go into a facility, or at least they had these products 4-5 years ago. Some of the products are decent, but quite honestly shouldn't be a majority of your portfolio. People sometimes only end up netting 1-2%...... lots of them have caps..... but I have seen significantly higher income payouts. Like I said, these in my opinion, right now, with the market being as strong as it is, should be a supplemental tool or a backup, IF written correctly.
If someone were to truly look at these, have the FA show the worst possible scenario, as they will typically show you a chart with the best case scenario and call it a day.
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As a retiree, my investments are widely diversified at low risk, but I do have a slush fund to play the market with. Always looking for corporations in distress that are likely too big to fail. For example, watched GE tumble, dump their CEO, divest themselves of business units that weren’t profitable and address their top heavy retirement issue. They were in serious distress.
Jumped in with it at 8.33 and it’s climbed to $12.14 today. They pay dividends as well.
When I see another company in distress that’s a promising prospect, I’ll sell the GE, pocket the profits and put the principal back into the market.
If I lose all the principle it would be disappointing, but wouldn’t alter my life style one iota because it’s a slush fund.
Jumped in with it at 8.33 and it’s climbed to $12.14 today. They pay dividends as well.
When I see another company in distress that’s a promising prospect, I’ll sell the GE, pocket the profits and put the principal back into the market.
If I lose all the principle it would be disappointing, but wouldn’t alter my life style one iota because it’s a slush fund.
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good way to do it.
No, not one has mentioned gambling except for me, to me it's a gamble. I've lost money in mutual funds before and other investments so to me it is a gamble. I never meant to offend anyone and if I did my apologies.
I just don't see how you (or me) could lose unless you ashed out during a slump?
I follow the SP 500 and its averaged a +12% over 100 years. So...
Were you doing single stocks that lost? That is more risky for sure.
A lot of folks are 100% invested in their company stocks through a 401K. Sometimes that can work out, but it goes against all conventional wisdom about investing in the market.
I agree. If I had a company 401K, I'd still have my seperate vanguard account and invest and contribute the min. to the 401k I believe.
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