Indexed anunity

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RonaldLWil
Posts: 18
Joined: Tue Oct 13, 2015 9:51 am

Indexed anunity

Post by RonaldLWil »

My wife and I went to go see a financial planner last night to get some information on Social Security. I knew that he would probably try to sell us something, and he did not disappoint.

The vehicle he is pushing is something called an indexed annuity. Does anyone out there have any experience with these, and could give some advice?

A bit of background 17 years service, 62 years old, looking at retiring in 1-4 years.

Thanks.

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ArrieS
Posts: 1072
Joined: Sun Aug 05, 2012 10:56 am

Re: Indexed anunity

Post by ArrieS »

RonaldLWil wrote:My wife and I went to go see a financial planner last night to get some information on Social Security. I knew that he would probably try to sell us something, and he did not disappoint.

The vehicle he is pushing is something called an indexed annuity. Does anyone out there have any experience with these, and could give some advice?

A bit of background 17 years service, 62 years old, looking at retiring in 1-4 years.

Thanks.
The Motley Fool did a podcast on annuities. I think they talk about indexed annuities in this one https://www.fool.com/podcasts/answers/2 ... ag-of-love

They also touch on annuities here https://www.fool.com/podcasts/answers/2 ... -versus-to
OCTOBER: This is one of the peculiarly dangerous months to speculate in stocks in. The others are July, January, September, April, November, May, March, June, December, August, and February. - Pudd'nhead Wilson's Calendar

nodak
Posts: 69
Joined: Sun Apr 02, 2017 6:36 pm

Re: Indexed anunity

Post by nodak »

No, but these people do;

https://www.bogleheads.org/forum/viewtopic.php?t=239135

Sounds like something to avoid at all costs (no pun intended).

Also, you need to find a financial planner that is a fiduciary, a couple people touch on that point in the thread I linked to.

crondanet5
Posts: 4324
Joined: Tue Aug 19, 2008 8:51 pm

Re: Indexed anunity

Post by crondanet5 »

If you can stand your bosses and your work environment I suggest you stay until you are eligible to apply for Medicare. Have it taken out of your Social Security Benefit rather than paying three months in advance. Medicare and SSA benefit should be treated as life changing events. Do you have long term health care contract? A will? Designated health care advisor? Trust fund? Are you going to buy a new red truck when you retire?

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Sad Al
Posts: 106
Joined: Tue Jun 08, 2010 11:50 am

Re: Indexed anunity

Post by Sad Al »

First, if you have a question about Social Security, you should ask the people at Social Security. I worked there 38 yrs and always thought we were accessible and friendly, however, if you can avoid the big city offices, you are likely to find a person with more time to answer questions.

On the annuity question, my financial advisor wanted to sell me one also, but when they got a Social Security fact wrong, and also wrong about the cost of Part C FEGLI at age 60, I decided he was not for me. My mother has an indexed annuity and it gives her comfort to know she is getting a monthly check. As promised it goes up once a year if the market and her account value has gone up. However, one drawback is that you don't fully participate in that profit. Each time it goes up, you get something less than the full increase, and the company keeps the remainder, which over time becomes quite profitable for them. Another thing to keep in mind is that there is a severe penalty if you decide to cancel the policy within 2 years.

Good luck!
Currently following Strategy 91423 @ TSPCALC.COM beginning 12/1/19.

JDD4J4J
Posts: 48
Joined: Thu Jan 05, 2012 2:21 pm

Re: Indexed anunity

Post by JDD4J4J »

A financial planner is an unregulated term, anyone can set up a LLC with a dog as a financial planner if they so desired to do. The horror stories are a dime a dozen. They are the modern day snake oil salesmen. You are generally best off keeping your money in FERS, TSP, and Social Security, as well as contacting the actual agencies if you have any questions or concerns. That being said, If you insist on talking to someone in the private sector, makes sure you talk to a licensed fiduciary. Fiduciary is equivalent to Doctor, while financial planner is equivalent to medicine man. You wouldn't go to a medicine man, be cautious of any advise from a so called financial planner.

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