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I am a 68 yrs. old male and my wife is 58. I want to set up a Hybrid Annuity with a $300,000 initial deposit. Hold for 10 years and then pull the trigger and create a stream of income for my wife of $40,000/yr. for the rest of her life. This is payable to both of us and continues upon my demise.

Based on the financial crisis going on in the world, and more particular in the USA, would this be a viable investment for our future given that we might have a currency crisis and the greenback could be worth $0?

If that happens, how would the Insurance Company continue to pay our monthly stream of income?

Thank You Garrett
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If you truly believe the greenback is destined to go to zero, your only option is to buy commodities. Land is probably the best one, especially if it is land on which you can raise food for you and yours. But I think you will need machine guns to protect it. So plan on bringing along friends and family to help.

Personally I think the US has very substantial assets that can be sold at some value to cover debts and make the greenback worth something. Of course all those petro dollars and foreign exchange dollars held by the Chinese must be given some value. Otherwise, no more trade. Perhaps they will buy title to most US land and businesses. More likely we will sell off a few possessions such as Wake Island, etc. There are also national treasures like National Parks or the mall in Washington DC.

But what is the alternative. We must have our oil no matter what. At any price. Even if our money comes back at us as attacks from the Muslim world.

As to insurance companies surviving greenback failure, they often own lots of hard assets like real estate and office buildings. They could be ok when the dust settles. But the chaos resulting could mean that will take years.

As to the annuity, don't forget inflation. In 30 yrs, your living expenses will double at least twice. $40K could turn out to be a pittance. Especially if the greenback is worthless.
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Any money you give to an insurer is not an 'investment'...its a contract. Insurers promise to give you something in the future for a lump sum today. These insurance company 'guarantees' are only as good as the financial health of the insurer

Assuming an average annual inflation rate of 3%, in 10 years, $40,000 will have the purchasing power of $29,700 today.

Remember the 3 laws of the marketplace:
1. No one knows what the future markets will do
2. We all invest in the same marketplace
3. Only the US Treasury can print money

How can the insurer offer value over a diversified portfolio of ETFs?

Answer: They can't

Think about it.

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No. of Recommendations: 1
1.Turn off Fox News.

2. If the "greenback goes to zero" the insurance company's assets will be affected negatively.

3. Ask the agent what the commission is and what the annual costs are.
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