No. of Recommendations: 1

One of my rules is that you never buy any kind of investment vehicle from an insurance company.

Our first IRAs were opened with USAA Insurance in annuities. I do not recall the original interest rate but 9 years later, 1991, it had dropped to around 7.6%. They have a 4.50% minimum rate which continues today.

I have nearly cleaned them out 3 times, 1991, 2001 and late 2008 to push into stock. I transferred money back into them from sales and dividends each time. Today they are 21.5% of our portfolio. I use them as most of the cash/bond position of our portfolio.

In 1996, a financial adviser recommended I close them. Didn't happen. (His other lame advice was to sell INTC, MSFT, CSCO, KO and other "questionable" stocks)

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