How’s the stock market?

r32

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Just watched these. My dad always talked about annuities being a scam and seems he was right... Loads of fine print that allows the investor to be paid peanuts while the fund manager reaps in bigtime profits.

Not FDIC insured.

Then factor in inflation.

WTF?


You know annuities are a scam just from those damn commercials. Any time you see some 70-something washed up actor pushing something in a commercial, right away.... gtfo out of my face!

No need to even do the research once you see a commercial.
 
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The most recent was Hartford Life , post financial crash , was sold to Met Life for 600 mil . AM best rates ins outfits and this one had superior rating . Stock went from 100 to 3 within a couple yrs , at it s peak had 300 bil of assets . A causality of the structured mortg , cmo , cdo bubble . Oops !
 

casa_mugrienta

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Apr 13, 2008
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You know annuities are a scam just from those damn commercials. Any time you see some 70-something washed up actor pushing something in a commercial, right away.... gtfo out of my face!

No need to even do the research once you see a commercial.

Just from some basic math in my head, it sounds like there's no reason to put a penny into this employer plan, which is through TIAA - even with the 7% (free money).

Net expense ratio around .39%
A fixed rate of around 3%
With the free money it would kinda be like getting a guaranteed 5.5% return.
Factor in inflation and you could be fvcking yourself so very bad with broom handle and no lube.

I didn't read the fine print of the variable - but the net expense ration is the same and it basically just seems like a higher risk version of what is already a foolish investment decision.

Contrarion viewpoint to not contributing a dime to this employer sponsored plan, anyone?
 

grapedrink

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Just from some basic math in my head, it sounds like there's no reason to put a penny into this employer plan, which is through TIAA - even with the 7% (free money).

Net expense ratio around .39%
A fixed rate of around 3%
With the free money it would kinda be like getting a guaranteed 5.5% return.
Factor in inflation and you could be fvcking yourself so very bad with broom handle and no lube.

I didn't read the fine print of the variable - but the net expense ration is the same and it basically just seems like a higher risk version of what is already a foolish investment decision.

Contrarion viewpoint to not contributing a dime to this employer sponsored plan, anyone?
IMO the only way I would want a fixed pay retirement plan is if it was tied to my final year salary like it is for police and firefighters. They do pretty well.

Otherwise, I would rather have more control over my money and not have it held hostage by some entity that doles it out on their terms at a fixed rate.
 

sussle

Miki Dora status
Oct 11, 2009
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Just from some basic math in my head, it sounds like there's no reason to put a penny into this employer plan, which is through TIAA - even with the 7% (free money).

Net expense ratio around .39%
A fixed rate of around 3%
With the free money it would kinda be like getting a guaranteed 5.5% return.
Factor in inflation and you could be fvcking yourself so very bad with broom handle and no lube.

I didn't read the fine print of the variable - but the net expense ration is the same and it basically just seems like a higher risk version of what is already a foolish investment decision.

Contrarion viewpoint to not contributing a dime to this employer sponsored plan, anyone?
without delving into the particulars, it's hard to believe there is a reason to leave a 7% match on the table. but it does suck an if an annuity is the only employer-contribution retirement savings option being offered. it's as if the employer has some other incentive to package their retirement benefit in that way?
 

Sharkbiscuit

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Contrarion viewpoint to not contributing a dime to this employer sponsored plan, anyone?
Even with the Fed stopping or dramatically scaling back bond buying AND three rate hikes next year, at your age, my guess is tossing it into an S&P500 Index fund in a Roth IRA would curb stomp 5.5% - if you are sure of your math on that.

without delving into the particulars, it's hard to believe there is a reason to leave a 7% match on the table. but it does suck an if an annuity is the only employer-contribution retirement savings option being offered. it's as if the employer has some other incentive to package their retirement benefit in that way?
7% doesn't sound like sh!t to me; I thought 100% up to a certain amount employer matched would be more of a topic for discussion. Combined with annuity and a guesstimated 5.5% return....

5.5% return sounds good in a long-term bear market if you're 68 and mostly set anyways. Otherwise.....
 
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sussle

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7% doesn't sound like sh!t to me; I thought 100% up to a certain amount employer matched would be more of a topic for discussion. Combined with annuity and a guesstimated 5.5% return....

5.5% return sounds good in a long-term bear market if you're 68 and mostly set anyways. Otherwise.....
i'm not sure we're talking about the same thing here...i'm referring to the employer being willing to match the employee's contribution to his retirement, whatever the plan may be. in this case, if the employee will contribute 7% of their gross, the employer will match it with another 7% (contingent upon being 100% vested, which usually takes a few years to get to). i'm just finished a career with an employer who offered a 6% match to a 401K, within which there were a variety of funds to choose from - that's why a 7% match sounds pretty to me, on the surface.
 
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Sharkbiscuit

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i'm not sure we're talking about the same thing here...i'm referring to the employer being willing to match the employee's contribution to his retirement, whatever the plan may be. in this case, if the employee will contribute 7% of their gross, the employer will match it with another 7% (contingent upon being 100% vested, which usually takes a few years to get to). i'm just finished a career with an employer who offered a 6% match to a 401K, within which there were a variety of funds to choose from - that's why a 7% match sounds pretty to me, on the surface.
Okay yeah we're definitely not talking about the same thing. Like I said employer 100% match up to a percentage sounds much better...

Casa Mugrienta, are you getting 100% employer match of retirement contributions up to 7% of gross, or are you getting $7 from the employer on every $100 you save??
 

casa_mugrienta

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Okay yeah we're definitely not talking about the same thing. Like I said employer 100% match up to a percentage sounds much better...

Casa Mugrienta, are you getting 100% employer match of retirement contributions up to 7% of gross, or are you getting $7 from the employer on every $100 you save??
100% employer match of retirement contributions up to 7% of gross. Not me my wife.
 
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sussle

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100% employer match of retirement contributions up to 7% of gross. Not me my wife.
your wife's employer will contribute an extra 7% of her gross annual income towards her retirement, contingent upon her doing same.. that's stone-free money.
 
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LifeOnMars

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Shekels for what?

Why are you on here editing posts at 3:30 AM that you posted at 9:30 PM?
I'm up early always, 4:30 is the norm. working from the computer most of the day, trolling is my side gig. shekels are the currency of your people, pay up or shut up.
 

casa_mugrienta

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your wife's employer will contribute an extra 7% of her gross annual income towards her retirement, contingent upon her doing same.. that's stone-free money.
Correct.

But considering the two options does it really make any sense to contribute?

Option A is a fixed annuity at 3% with a 0.40% total fee.
Option B is an indexed variable rate annuity with the same fee.

If choosing option A, that's a 5.2% return when the employer match is factored in. Seems like a horrible strategy for someone my age.

Not sure why anyone would choose Option B when you could just invest index funds.
 
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Casa , index variables depend on the performance of the index they mirror , hence the lesser rate to capture upside gains in the markets .
 

LifeOnMars

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More like 3:30.

Hyperarousal, due to FUD of having all your money stashed in crypto.




fxd



Who are "your people"?
i'm not in CA anymore, so typical of you to make assumptions. again projecting your sensitivities unto others. you're a physical midget with the mental capacities to match, enjoy those 10% yearly returns that don't outpace inflation :monkey:
 

sussle

Miki Dora status
Oct 11, 2009
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Correct.

But considering the two options does it really make any sense to contribute?

Option A is a fixed annuity at 3% with a 0.40% total fee.
Option B is an indexed variable rate annuity with the same fee.

If choosing option A, that's a 5.2% return when the employer match is factored in. Seems like a horrible strategy for someone my age.

Not sure why anyone would choose Option B when you could just invest index funds.
i can't get past leaving 7% of gross annual salary (the match) on the table. if i understand you right, if your wife is fully vested, she will get a 100% return on her 7% contribution just with the 7% match, no? so even 5% return on top of that is decent, imho. not to mention a 7% reduction in her taxable income. still not sure i understand the whole picture here, but that's my two cents.
 
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