tag:blogger.com,1999:blog-8507267003129255315.post7752670682203157115..comments2024-02-05T01:08:25.857-08:00Comments on Krazy Economy: Background notes: Annuities, Retirement Plans, and the GovernmentC.W.http://www.blogger.com/profile/16478139107745117649noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-8507267003129255315.post-28378759704200719912011-09-13T12:36:11.722-07:002011-09-13T12:36:11.722-07:00C.W., thank your this valuable and intelligent ins...C.W., thank your this valuable and intelligent insight on annuities. It certainly helped me when understanding the current economy and needing a place to invest in <a href="http://safemoneyalternatives.com/hot-topics/guaranteed-lifetime-income" rel="nofollow">Fixed Annuities</a>.Jennahttps://www.blogger.com/profile/00563840019983583817noreply@blogger.comtag:blogger.com,1999:blog-8507267003129255315.post-35303423898849389442010-07-19T22:30:46.135-07:002010-07-19T22:30:46.135-07:00This comment has been removed by a blog administrator.File Personal Bankruptcyhttps://www.blogger.com/profile/17590168891212592331noreply@blogger.comtag:blogger.com,1999:blog-8507267003129255315.post-27777116540075618072010-04-08T15:40:55.192-07:002010-04-08T15:40:55.192-07:00@ CW - I think this is a pretty fair assessment of...@ CW - I think this is a pretty fair assessment of annuities, overall. I would not agree 100% on some of your conclusions, but I think the general idea is correct. <br /><br />It is tough to deal with inflation. There aren't a lot of financial products that have done it well. I think assets like precious metals do a decent job. <br /><br />Some stocks are good (if you are concerned with income), and a good quality dividend-paying whole life contract generally has been able to compensate somewhat for inflation because of the dividends (the only problem being it takes a LONG time for those contracts to show positive returns as available cash which makes them great for long-term, not so great for short and intermediate-term).<br /><br />Of course, ending the debasement of our currency would certainly solve the problem. <br /><br />- rational_daveAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8507267003129255315.post-68235770182953721232010-04-08T10:07:22.434-07:002010-04-08T10:07:22.434-07:00As a private individual, planning for your own ret...As a private individual, planning for your own retirement, an annuity could play a role. You can, if you want to spend the time or hire a professional, come up with schemes that enable you to shuffle things around. What you cannot easily do is cover for inflation. Elsewhere, rational_dave has pointed out that fixed annuities are available with some features that help. The downside is that these added features come with added expense (as they should) and thus cut into the initial rate of return. Other options may be available, for example, having money in other non-fixed investments to provide additional cash to overcome inflation. However, that only works if the inflation is low, say 3% or less.<br /><br />Right now, the problem with using a fixed-annuity (and perhaps a variable one, too) is that we don't know what the intermediate future holds. Because of the deficit, government spending, and the Fed's actions, we could be facing significantly higher rates of inflation. If that is so, having money tied up in a fixed-income vehicle would be a disaster. Selling it to a secondary market would not be a good solution because the market would not offer face value, but one discounted to accomodate the low interest in the annuity compared to inflation. As with bonds, right now, annuities are a risky place to be.C.W.https://www.blogger.com/profile/16478139107745117649noreply@blogger.comtag:blogger.com,1999:blog-8507267003129255315.post-80145191650674508642010-04-07T23:59:32.323-07:002010-04-07T23:59:32.323-07:00I read your article it's really Nice article o...I read your article it's really Nice article on Annuity,have some very good points in addition to this i want to discuss some more points regarding Annuity ::-<br /><br />1. It is just and natural that every employee saves some money for his future.He has to invest these savings so that after his retirement,he gets some money every month which he can use for his day to day needs.<br /><br />2. Annuities can be structured in a number of ways; varying accumulation period, length of income payments and other factors.<br /><br />3. Annuity payments are taxable payments. On each monthly payment you receive you will be held responsible for paying a tax on it.<br /><br />4. Ways to sell annuities :<br /><br /> 1.Other pension. <br /> 2.Security for a loan.<br /> 3.Big purchase.Lump Sum Annuityhttps://www.blogger.com/profile/05893626124404263900noreply@blogger.com