Then get an annuity.Okay, an annuity.That's a plain vanilla Single Premium Immediate Annuity that doesn't depend on any-frigging-thing other than what's in the contract. Pays you exactly $X a month forever.A four-page contract, like this one: http://www.brkdirect.com/SPIA/SamplePolicy.pdfNot a 100+ page document filled with with turgid prose like:If the index cap is 3% and the performance of the index is between 0% and 3%, the indexed account will be credited with the index growth amount of 0% through 3%. If the performance of the index is above 3%, the indexed account will be credited with the indexcredit of 3%. The company at its sole discretion will make the determination whether to declare an index cap above the guaranteedminimum index cap of 3%. While the company has no specific formula for determining an index cap above the minimum index cap of3%, we may consider various factors, including, but not limited to the yields available on the instruments in which we intend to invest theproceeds from the contract, the costs of hedging our investments to meet our contractual obligations, regulatory and tax requirements,sales commissions, administrative expenses, general economic trends and competitive factors. For example, if the company, in its solediscretion, declares an index cap of 8%, and the performance of the index is between 0% and 8%, the indexed account will be creditedwith the index growth amount of 0% through 8%. In this case, if the performance of the index is above 8%, the indexed account will becredited with the index credit of 8%. At any time, if the performance of the index is below 0%, the indexed account will be creditedwith an index credit of 0%. Therefore, you are assuming the risk that an investment in this indexed account would offer no return.You'd always be wondering just how you're getting screwed, 'cause you sure couldn't easily track how "Allianz' proprietary blended index comprised of Dow Jones Industrial Average (35%), Barclays Capital U.S. Aggregate Bond Index (35%), Euro Stoxx 50 Index (20%) and Russell 2000 Index (10%)" is performing. Not unless you were a rocket-scientist or something.Hell, the SALES BROCHURE for that Allianz annuity is 4 times longer than the ENTIRE CONTACT for the Berkshire Hathaway Annuity.And, y'know what? It's simple & straightforward. Perfectly clear.I just pulled a quote from http://www.brkdirect.com/spia/EZQUOTE.ASP For a male born in 1950, the SPIA costs you $199K and they give you $1,000/mo for as the rest of your life.Somehow I suspect that something like this Berkshire annuity is not what you (Dave) have in mind.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra