Episode 125: Busting the Annuity Myths: My Interview with Tom Hegna (Part 1)

[@dmoon9037]

Great episode and dialogue this week.

[@lionheart93]

Just bought your books sir. Enjoying and learning a lot

[@jeffreykamke]

Great interview gentleman you covered a lot of important topics and provided some powerful insights

[@arinco6944]

Informative program. Thanks!

[@DavidMcKnight]

You’re welcome!

[@stevekamenetsky5747]

Payout rate is not interest rate yield.

[@stevekamenetsky5747]

He doesn’t talk about inflation affect on SPIAS and COLAS

[@EdfromCanada]

Annuities are a lousy bet because you relinquish control of your money. He who controls his money controls his fate. Run the numbers and calculate the B/E point before you make money in an annuity. The calculations are worth doing. The issue of outliving your money is a ploy to sell products such as Life Annuities - a lousy product.

[@DavidMcKnight]

Maybe you’re thinking of a Single Premium Immediate Annuity? There are other types that give you up to 10% liquidity per year, and not sure why you would need more than that if the goal is making sure your money lasts through life expectancy.

[@EdfromCanada]

@@DavidMcKnight Thank you for the kind reply. For me (not expecting others to think like I do) relinquishing control of your money is a huge factor because (if you're 65) you have a 50% probability of living to 85.5 and only a 17% chance of making it to 95. You only require an investment return of 6% to have your money last to 95 (6.5% to 100). Putting your money in an index mirroring ETF will easily exceed 6.0% in the long run. I ran the numbers to prove this. Key thing for me: I control and oversee my money and if I die my estate benefits, big time.