UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76075  
Subject: Re: WSJ: Annuity stability of Insurance Cos Date: 3/3/2009 2:10 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
"But what is also conspicuously absent from the airwaves and print are banner headlines singing the praises of those who were 'visionary' enough to invest their $$ in annuity products before the market crash."

I saw only this morning a newspaper item indicating the percentage of 401K plans that offer an annuity payout as an alternative to lump sum (or IRA rollover). The number was 15% as I recall. But article implied that annuities give you a much better chance of making your money last through retirement. (No discussion of inflation.) Sounds like another of those sales pitch blurbs made to look like a newsreport. (Plenty of news copy these days seems to have advertizing influence, some more subtle than others.)

And then there are those who remember the junk bond meltdown of the '90s when people with insurance company annuities (some were employer pensions) wondered out loud if their insurance company would be able to continue paying their checks. The words AM Best seemed to be on everyone's lips those days.

Annuitized benefits including insurance company annuities that have been annuitized do offer a measure of security when other investments are in turmoil. But those benefits do come from insurance company investments. If the market gets bad enough, those companies too can find their finances impaired or inadequate to make promised payments.

Like it or not, nothing in finance is built on rock solid foundation. It all has an element of uncertainty. And even now we begin to think about the prospects of the US dollar failing under a mass of debt one day. Yet another element to worry about that one year ago few Americans even were aware of.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Value Hounds

Netflix Riles Investors
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement