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Author: bwb3 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76421  
Subject: Annuities-help!!!!!!!!!! Date: 8/13/1997 4:57 PM
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I'm 21 and was looking at opening a variable annuity for a place to store money after my IRA is full. But when I spoke with the agent, they tried pushing variable whole life insurance on me, saying it was the same, except eithier to get the money out of latter, if I ever needed it. Now this sounds way to good to be true, all the benifits, but none of the draw backs. Is this to good to be true? can someone please help????
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Author: rayvt Big gold star, 5000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 174 of 76421
Subject: Re: Annuities-help!!!!!!!!!! Date: 8/14/1997 11:00 AM
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Yes, it's too good to be true. You are getting an inaccurate picture, based on arbitrary projections, and the assumption that Congress will never change the tax laws. Talk to any accountant to see how much, and how often they change to tax laws---any how many of their clients are stuck in an investment that is a big loser due to such changes.



I have never been able to see the logic of linking life insurance with a savings account. If you collect of the insurance, you forfeit the savings account. If you want to withdraw savings, you have to cancel the insurance.



Buy insurance like you buy everything else--get the best value for your money, and don't link together dis-similar things. This means you should buy term insurance (this is like your car insurance, or homeowners fire insurance--if you have a loss the insurance company pays for it, if you don't have a loss they don't. In either case, they keep the premium.)



You don't link your savings/investment with your car insurance--why would you want to do so for life insurance? Believe me, you can make a better overall deal on your own than a package that somebody else puts together for you. Buy the best life insurance you can find, and make the best investments that you can find. Then you have a "package" that is EXACTLY tailored to suit you, rather than a one-size-fits-all that somebody is trying to foist on you.



Regards,

Ray



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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 178 of 76421
Subject: Re: Annuities-help!!!!!!!!!! Date: 8/16/1997 11:05 AM
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Greetings, bwb1, and welcome to Fooldom.

<<I'm 21 and was looking at opening a variable annuity for a place to store money after my IRA is full. But when I spoke with the agent, they tried pushing variable whole life insurance on me, saying it was the same, except eithier to get the money out of latter, if I ever needed it. Now this sounds way to good to be true, all the benifits, but none of the draw backs. Is this to good to be true? can someone please help???? >>

In my absence, Rayvt gave you a super, well-reasoned response to this question. I couldn't have said it better myself as it expresses this Fool's philosophy in a nutshell. If you haven't read that missive yet, you definitely should do so.

And to Ray: Thanks for the assist, and keep up with the Foolish postings!

Regards.......Pixy

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