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Retirement Discussions / Retired Fools
|Subject: Re: Annuities..pros and cons||Date: 9/23/1998 3:26 PM|
|Author: Stony2||Number: 61 of 19741|
Thanks for the bevy of great responses to this thread. Much to ponder. I had mentioned at thread 1 that I would try to dig out some of my references ( you know, those little gems you cut out of mags and keep in a file folder). Here is one of my favs:
In an article entitled "Ten Things Your Variable-Annuity Seller Won't Tell You" (SmartMoney, November 1997, page 167) they talk about some compelling stuff.
I will try to raise a point or two but not all at once.
Are annuity sales commissions 5 to 7 percent? If so, aren't those about twice what your broker gets for peddling a mutual fund?
Are the approximate 1.3% insurance fees (mortality and expense-risk-fees) assessed on just your principal or upon your earnings too? I gather that they are most often based upon your earnings too.
The article cites references that suggest the cost to the insurer of pro