Comments for Annuity Guys®

Comment on A Lump Sum Buyout or Keep Your Pension – Which is Best? by Bob Rich

Bob Rich — Mon, 14 Dec 2015 17:03:47 +0000

I faced this question with regard to my former Company’s DB plan when I turned 55. At that point I was eligible to begin receiving monthly payments , take a lump sum or stay in the plan or defer the choice. I was employed full time so starting payments made no sense. The deferred payout rate relative to the projected lump sum was favorable, but deferring meant that if I died before making a formal election, I would have been deemed to have elected the default joint and 50% survivor option and my wife’s benefit would immediately be cut in half. Fortunately I had an IRA in a fixed annuity with a 5% **guaranteed interest rate with a higher **guaranteed value at age 65 and a **guaranteed survivor payout rate at 65 comparable to the Plan’s joint and 100% option that I would have wanted to elect at 65. Now the money is safe and we have the flexibility of choosing if or when to turn it into an income stream.

Comment on Why are Annuities an Excellent Alternative Asset Class? by Annuity Guys®

Annuity Guys® — Sat, 21 Nov 2015 14:00:27 +0000

In reply to James Borgeson.

James, you are right we should have written the five reasons annuities are an excellent alternative asset class in our blog to match the video (We just did it as you suggested). Thanks James
So, here they are:
Safety of highly rated insurance companies;
Insurance companies that specialize in managing risk;
Investment grade bond alternative offering similar growth;
(annuities mitigate or eliminate bond credit risk and interest rate risk, while protecting retirees against longevity risk and loss of principal risk)
New non-correlated proprietary indices;
No fees or low fees.

Comment on Why are Annuities an Excellent Alternative Asset Class? by James Borgeson

James Borgeson — Sat, 21 Nov 2015 12:37:18 +0000

Your commentary “Why are Annuities an Excellent Alternative Asset Class?” is one of your best. It provides a broad view of what a retirement portfolio might contain and why annuities might be included. Calling Annuities an “alternative” asset class is interesting as it might be more comparable to the bond asset class, but I suppose with the index annuities that depends on what index (or indices) you pick. One suggestion is to show us the 5 points in your notes that you look at during the talk. You say you covered them, so that’s good, but what exactly are they?

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Comment on Retirement Annuity Calculators by Is One Million in Annuities or Securities Enough to Retire On?

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