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URL:  https://boards.fool.com/again-you-are-assuming-a-life-only-immediate-31215020.aspx

Subject:  Re: Hybrid/Other Annuities Date:  4/18/2014  4:16 PM
Author:  tjberko Number:  35270 of 36693

Again, you are assuming a life only (immediate) annuity. Take a look at Period Certain. Heck, there are even some immediate annuities that provide liquidity - a person can request a return of their premium on some policies.

Hawkin, I am not assuming anything. I read the original post. You should go back and look at it. Here is a quote:

". . . get $500 or so a month until I'm not around to sign the checks. At 59, I would hopefully live to >79, then I would be living off the insurance company, not simply getting my own money spoon fed back to me."

He is absolutely describing an immediate annuity, not a deferred annuity. He will only be getting his principal back for many years before he starts to earn any interest. You mention a "Period Certain" annuity, but he is talking about a life time annuity. And the immediate annuities that guarantee your principal back pay a lower interest rate and they still don't guarantee you any interest.

This product he describes is definitely not a tax deferred annuity. A tax deferred annuity does not provide checks sent to you each month but the interest builds up tax deferred. After some fixed period of time, you can then start getting checks sent to you. Deferred annuities issued by solid companies generally pay around 2% now. I would be curious to see a link to the 6% deferred annuity you talk about.

I continue to find it interesting that you post is such absolutes.

But I absolutely believe that this is a terrible product, and I want to warn him away from it.
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