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Author: Hawkwin Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35383  
Subject: Re: Hybrid/Other Annuities Date: 4/17/2014 11:26 AM
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This is far far less than 6%.

$100k investment paying $500 a month equals $6000 a year ~ 6%.

It will take years before he even gets back his principal.

Such an investment is not designed to pay back principle, just like a CD is not designed to pay back principle. The principle is intended to be left in the account for growth.

. Also, in my opinion, there are no AAA rated life insurance companies.

There are a few. I don't know why you trust them less than PSA considering the fact that most insurance policies have state guarantees up to $300,000 against default. PSA has no such protection.

Even AIG, which basically went bankrupt, did not default on a single policy.

Doesn't make one better than the other, just different.
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