Comments on: Do You Attend Retirement, Investment, or Annuity Seminars?

By: JC

JC — Sun, 15 Jun 2008 05:09:25 +0000

Only go to seminars where the speaker is licensed to sell securities. Registered representatives have allot more knowledge about investments and have to get their seminar materials approved by their broker dealer.

By: Dateline NBC Investigates Equity-Indexed Annuities | AllFinancialMatters

Dateline NBC Investigates Equity-Indexed Annuities | AllFinancialMatters — Tue, 15 Apr 2008 17:19:52 +0000

[...] Do You Attend Retirement, Investment, or Annuity Seminars? [...]

By: Investing » Do You Attend Retirement, Investment, or Annuity Seminars?

Investing » Do You Attend Retirement, Investment, or Annuity Seminars? — Mon, 24 Sep 2007 11:05:27 +0000

[...] Joshi Ventures wrote an interesting post today onHere’s a quick excerptDo You Attend Retirement, Investment, or Annuity Seminars? If so, I want to hear from you. I want to find out how honest these presenters really are. Here’s my dad’s experience with one of them:. My dad has attended a few seminars in … [...]

By: Matt Abraham

Matt Abraham — Thu, 13 Sep 2007 23:07:20 +0000

ah ok i was confused too

By: Devin Cox

Devin Cox — Thu, 13 Sep 2007 23:05:51 +0000

Sorry, I re-read what your post because I was so confused how you could even think that your numbers were correct. I realized you were using 10,000 as the original investment, and the 16,018 number was the balance after four years. So yes, with an original investment of 10,000 you are correct. My apologies.

By: Devin Cox

Devin Cox — Thu, 13 Sep 2007 23:01:20 +0000

I am very confused about where YOU got your numbers. Your numbers seemed significantly low to me so I got out my financial calculator and plugged in the numbers you provided. The ending balance would be $28,864.96 if you invested $16,018 and received an annual 12.5% return. Which isn’t quite double, but is much closer than double than the numbers you came up with. I am VERY curious how you got your result? Please share.

By: Brian

Brian — Thu, 13 Sep 2007 17:28:48 +0000

Thanks for the insight on the alternatives to these products, Dylan. After your comments as well as JLP’s new post on this subject, I can’t really see any use for this type of product.

By: Dylan

Dylan — Thu, 13 Sep 2007 12:58:09 +0000

Mike, equity indexed annuities don’t really keep the dividends because they don’t actually hold any securities in a variable account. The index is just used to calculate the insurance company’s obligation to the contract owner, and the index does not account for dividends.

By: Dylan

Dylan — Thu, 13 Sep 2007 12:25:58 +0000

Brian, basically you purchase zero coupon Treasuries with a face value equal total of principal you want to protect. Then invest the difference between the discount price and the face value in something else, index funds for example. If the other investment goes to $0, you are back at your original principal amount when the Treasuries mature. There are fancier, more creative, and higher risk variations, but that is the basic idea. I’m not recommending it, just comparing it to the equity indexed annuity concept.

By: Brian

Brian — Thu, 13 Sep 2007 04:41:42 +0000

Dylan – could you expand on the zero coupon treasury/index fund combo? I am not familiar with that strategy as it relates to principal protection. Thanks!