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Subject:  Re: Annuities Date:  6/13/2013  12:12 PM
Author:  gdett2 Number:  72484 of 88777


One of my rules is that you never buy any kind of investment vehicle from an insurance company.

Our first IRAs were opened with USAA Insurance in annuities. I do not recall the original interest rate but 9 years later, 1991, it had dropped to around 7.6%. They have a 4.50% minimum rate which continues today.

I have nearly cleaned them out 3 times, 1991, 2001 and late 2008 to push into stock. I transferred money back into them from sales and dividends each time. Today they are 21.5% of our portfolio. I use them as most of the cash/bond position of our portfolio.

In 1996, a financial adviser recommended I close them. Didn't happen. (His other lame advice was to sell INTC, MSFT, CSCO, KO and other "questionable" stocks)

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