Advertising
Whole Network Most Recent TOP10 Credit Housing Investing Retirement

 

Annuities and Seniors

Filed in archive Investing by andy on May 14, 2005

suit.jpg
This NY Times article (reg. reqd.) drives the point home that you have to be extremely careful when dealing with Annuitieslinks. They can be completely inappropriate in a whole host of situations. And they attract an aggressive salesmanship due to commissions topping, at times, 12+%.



The investment the Aquinos had chosen was an annuity, an insurance product that not only tends to carry high fees but also requires that most of the money stay locked up for years, making it especially inappropriate for many older investors, regulators say. In fact, the one they bought carried a staggering 17.5 percent surrender charge if it was cashed in during the first year, their daughter explained. Exit charges were not scheduled to disappear until 17 years after the purchase.

This meant that Mr. Aquino, who is 65, and Mrs. Aquino, 63, could not cash in the annuity without paying a surrender fee until they were in their 80's. The executive had not told them about the lockup requirement, the Aquinos said, although the brochure he left with them described the fees in small print.



With rates still historically low, seniors are reaching for yield. A lot of annuities claim to solve this predicament. Please go slow, have everything explained 2 or 3 times and read the fine print. Press the salesman why an annuity is suitable in your situation. In fact, before signing anything take all the paperwork and get an independent second opinion. As the saying goes, more money's been lost reaching for yield than at the point of a gun.


Advertisement


Permalink: Annuities and Seniors
Tags: finance  seniors 

Trackback: http://www.creative-weblogging.com/cgi-bin/mt-tb.pl/6462



Related Entries:

Gadgets for seniors - 12 December 2005

Does Your IRA have a Benficiary? - 10 February 2006

Check out Those in Charge - 11 February 2006

Give Seniors a Break - 17 February 2006

Book Review: Econospinning - 11 September 2006

Gym for senior - 19 June 2007

Online Learning for Seniors - 06 July 2007

Confidence Personified - 29 December 2007

Seniors Dating Online - 21 July 2008

Advertisement


Advertisement


RSSrss   | See all blog subscribe options
Googlegoogle   |   What is RSS?
Yahoo!yahoo
AddthisAddThis Feed Button
BloglinesBloglines
Newsletter

Use our search feature to look for other interesting posts

Just this blog Whole network


 
  • Advertise with us

  • Learn more about our advertising options or email advertising - at - creative-weblogging.com or give Luis a call at +1 (650) 331 8047.


  • Other blogs in the same channel in the Creative Weblogging Network







 
Tagcloud: About This Site Banking Blogging Issues Book Reviews Buying Stuff Careers and Money Charity Credit Economy Education Finance Financial Advisors Funny General Greatest Hits Happiness Health Housing Identity Theft Inspiration Investing Kids Marriage and Finance Money & Politics Other Voices Real Estate Retirement Saving Sponsored Post Taxes The Joneses Tools Travel Warren Buffett Zen