Comments on: Jonathan Clements on Immediate Annuities http://allfinancialmatters.com/2006/04/07/jonathan-clements-on-fixed-annuities/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Sat, 11 Feb 2012 20:32:19 +0000 hourly 1 http://wordpress.org/?v= By: Retire Rich http://allfinancialmatters.com/2006/04/07/jonathan-clements-on-fixed-annuities/comment-page-1/#comment-2927 Retire Rich Sun, 16 Apr 2006 18:41:42 +0000 http://allthingsfinancialblog.com/2006/04/07/jonathan-clements-on-fixed-annuities/#comment-2927 I work for a variable annuity provider so you are correct, I do believe in them. All things being equal, mutual funds will always outperform similar annuity subaccounts due to the insurance costs. But what about the millions of Americans who, if it weren't for VA guarantees, would never think of equity exposure? There are PLETNY of, "if it ain't FDIC, it ain't for me," clients. So instead of averaging 10-12% over 20 years (mutual funds), the client will see 8-10% inside a VA....still beats 4% in a fixed annuity doesn't it? I guess I am drinking the VA Kool Aid, but I do believe we are forgetting that not all clients believe in the market..... I work for a variable annuity provider so you are correct, I do believe in them. All things being equal, mutual funds will always outperform similar annuity subaccounts due to the insurance costs. But what about the millions of Americans who, if it weren’t for VA guarantees, would never think of equity exposure? There are PLETNY of, “if it ain’t FDIC, it ain’t for me,” clients. So instead of averaging 10-12% over 20 years (mutual funds), the client will see 8-10% inside a VA….still beats 4% in a fixed annuity doesn’t it? I guess I am drinking the VA Kool Aid, but I do believe we are forgetting that not all clients believe in the market…..

]]> By: JLP http://allfinancialmatters.com/2006/04/07/jonathan-clements-on-fixed-annuities/comment-page-1/#comment-2778 JLP Sat, 08 Apr 2006 04:12:42 +0000 http://allthingsfinancialblog.com/2006/04/07/jonathan-clements-on-fixed-annuities/#comment-2778 Rarely, You are correct (or should I say right). I changed the wording. Thanks. Rarely,

You are correct (or should I say right). I changed the wording. Thanks.

]]> By: rarely right http://allfinancialmatters.com/2006/04/07/jonathan-clements-on-fixed-annuities/comment-page-1/#comment-2776 rarely right Sat, 08 Apr 2006 03:20:45 +0000 http://allthingsfinancialblog.com/2006/04/07/jonathan-clements-on-fixed-annuities/#comment-2776 I would modify your post title from "fixed annuities" to "immediate annuities" which Clements seems to have quite an affinity for. The alternative to an immediate annuity that most investors prefer is a variable annuity with a guaranteed lifetime income rider. I can write about this in more detail if you are interested. Briefly, a variable annuity with an income rider can guarantee the owner a 5% income stream for life off the original investment with upside income and market value potential if the investment return is greater than the 5% withdrawals + costs. I believe Clements wrote about the AXA variable annuity with this feature a while back. I would modify your post title from “fixed annuities” to “immediate annuities” which Clements seems to have quite an affinity for.

The alternative to an immediate annuity that most investors prefer is a variable annuity with a guaranteed lifetime income rider. I can write about this in more detail if you are interested.

Briefly, a variable annuity with an income rider can guarantee the owner a 5% income stream for life off the original investment with upside income and market value potential if the investment return is greater than the 5% withdrawals + costs.

I believe Clements wrote about the AXA variable annuity with this feature a while back.

]]> By: JLP http://allfinancialmatters.com/2006/04/07/jonathan-clements-on-fixed-annuities/comment-page-1/#comment-2764 JLP Fri, 07 Apr 2006 20:10:48 +0000 http://allthingsfinancialblog.com/2006/04/07/jonathan-clements-on-fixed-annuities/#comment-2764 Okay, maybe "hate" is too strong a word to use. However, for annuities other than fixed annuities, I have noticed that those who usually speak highly of them are those who sell them. That's been my experience. Okay, maybe “hate” is too strong a word to use. However, for annuities other than fixed annuities, I have noticed that those who usually speak highly of them are those who sell them. That’s been my experience.

]]> By: jj http://allfinancialmatters.com/2006/04/07/jonathan-clements-on-fixed-annuities/comment-page-1/#comment-2763 jj Fri, 07 Apr 2006 18:10:01 +0000 http://allthingsfinancialblog.com/2006/04/07/jonathan-clements-on-fixed-annuities/#comment-2763 I don't understand your first sentence. Can you explain to me where you've heard this or how you came to that conclusion? I don’t understand your first sentence. Can you explain to me where you’ve heard this or how you came to that conclusion?

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