Twenty years ago I was sold some annuities and up to this day, I still regret going along with the advisor.
@chrisd67365 жыл бұрын
He wasn’t an advisor he was a salesman. There’s a big difference.
@kgm2182 Жыл бұрын
And to this day that "advisor" has no regrets.
@NewsHistorian5 жыл бұрын
Thanks Dave. I was considering an Annuity and now reconsidering.
@christinemarie007 Жыл бұрын
I am considering it as well...not anymore.
@StressLessFinancial3 ай бұрын
Just like stocks, there are good or bad annuities. When we want to protect our nest egg from market crashes, we have to diversify our portfolio and not just rely on vehicles that are under stock. Obviously as market collapse, it takes decades to recoup and if you are in your late 50's you can imagine the financial crises you have to go through to wait for the market to recover your retirement fund from your 401k , IRA and the like. So what someone should do naturally? Of course, find a vehicle that can give protection from losing principal while it can give you certain percentage which might not that high like stocks can give you but surely protects your principal. That is where the annuity comes in. Now, is Variable annuity the one you are looking for? No, it's not it. It sucks due to susceptibility to market volatility because it has a percentage invested in stocks. What you are looking for are fixed index annuity, MYGA, or income-generating annuity because these vehicles are not associated with stocks. Also make sure while buying annuities you are working with the right people who have fiduciary roles to act in your benefit not theirs. The problem working with most financial advisors is they have limited knowledge in which annuity or which bucket you should put your money on. It is suggested to work with a broker you can trust so he can shop from different companies and also suggest better strategies . This can ensure you are putting in the right buckets like Barcleys or other trusted buckets. Is the broker earning money from you? Of course, but it is only a one-time commission. Given the time they spent to master their craft just like everybody else, they have the right to earn from their expertise as well.
@LoganAllec3 жыл бұрын
anybody know exactly what these mutual funds are that ramsey claims consistently beat the S&P 500?
@javierjimenez23723 жыл бұрын
American Funds 🙏
@MrKage953 жыл бұрын
I like the below. *not a financial advisor* FOCPX FSCSX FSPHX FSPTX FSMEX FBGRX There's also nothing wrong with doing index funds. they're very safe and steady, insanely low fees, and you don't need to worry about "do I beat the S&P500 this year?"
@zach42163 жыл бұрын
They don’t exist
@MrKage953 жыл бұрын
@@zach4216 I just gave six that have beat the S&P over a 1-, 3-, 5-, and 10-year average (even when you factor in expense ratio). they do exist, they're just harder to find.
@zach42163 жыл бұрын
@@MrKage95 keyword: “have”
@rodgraff17824 жыл бұрын
Variable annuities are nothing more than mutual funds wrapped around an insurance policy. Worse than whole life insurance. Never mix investments with insurance. I know, I made the mistake too.
@Mike-012345 жыл бұрын
Anything sold by an Insurance agent who usually sell these is a sign to run.
@phayzyre10525 жыл бұрын
Wise words!! 👍👍
@rodgraff17824 жыл бұрын
Very true. The sharks that sell these variable annuities are paid huge commissions, and the consumers are stuck with paying high fees for a number of years. This is how they get the money to pay the commissions. If you back out early, you get stuck with very large surrender fees.
@joelduffy14 жыл бұрын
Agreed. And I'm an insurance agent. I won't sell them.
@christinemarie007 Жыл бұрын
Thank you for the video and thank you so much for all the comments. I am trying to learn and understand. All this is new to me and I understand nothing. I am not at all sure what to do. I am so confused.
@rbscott215 жыл бұрын
No risk in a Variable annuity? There is no minimum growth rate unless it is for future income. That is not the same as growth of your lump sum or accumulation value. Fees are pretty high on Variable annuities. Consider a no-fee Fixed index annuity if you want to have principle protection. Commissions are not 23% (4X a mutual fund which is generally 5.75% on an A share fund) Variable annuities are a high cost way to invest in mutual funds.
@BigRed25 жыл бұрын
Mutual fund fees are not 5% lol , they range 1-3%
@chriswilson19685 жыл бұрын
@@BigRed2 Loaded mutual funds charge a commission of 5.75% when you buy in. Why are you referring to expense rations when hes talking about a different fee entirely?
@JohnBowl146902 ай бұрын
Fixed annuities are better than variable. However, I'd rather not do ANY annuity.
@phayzyre10525 жыл бұрын
I remember back in college in the mid -990's I had a guy who sat behind me in a business class I was taking that worked for Prudential Annuities and Securities. He used to ballyhoo and brouhaha about how "great" annuities were and how he stood to make tons of cash selling them. He made it sound like annuities were the greatest thing since sliced bread. Intrigued, I checked on annuities to see what all the fuss was about....it didn't take me long to realize what was going on. Annuities have sky-high commision fees and all this guy was doing was lining his wallet at other people's ignorance. Annuities are something of a joke nowadays and most people have wised up to that notion. I wonder what that same guy that used to blow his horn about annuities is saying nowadays....welcome to Walmart!?
@chriswilson19685 жыл бұрын
Welcome to Costco, I love you....
@govols22144 жыл бұрын
Annuities are good in place of bonds, but should not be used as an equities replacement, nor should they be compared to them
@kawi4ev Жыл бұрын
You may want to relook at annuities now. “Structured” annuities have evolved and plenty of no fee options.
@coderider30225 ай бұрын
Annuities - your give up growth for safety. You can’t cry years after. You knew this at the time ! Fixed term annuity makes sense to bridge you but that’s it.
@JohnBowl146902 ай бұрын
Exactly. Best bet is to stay away from annuities. I'd rather keep it in a 401K. If I am super scared, just buy US govt bonds, which is paying over 5% with virtually 0 fees. Then you don't have to get penalized for taking out the money if you need it.
@drewgsands Жыл бұрын
What do you feel about Berkshire Hathaway brk b
@ryandebock62776 жыл бұрын
Interest rate hikes mean bond values go down. If you are retiring soon stay away from bonds and invest your money in safe indexed accounts like FIA''s. When interest rates really go up like they are going to, people are going to lose a lot of money in the mutual fund market, even though they tell you its safe.
@justsaying73635 жыл бұрын
What is FIA's, I'm learning!?
@adam43824 жыл бұрын
Fidelity has its own personal retirement annuity with low cost and no big commission fee like a tipical insurance company that locks your money and surrender value and low index return. You can manage your fund yourself
@jeffreycross92357 жыл бұрын
I would like to call after huge investments and huge loss and disability it still good to get info on that thanks you'll for that advise!!!
@colinjames95625 жыл бұрын
this is what Dave is the most ignorant to, index funds. The most common phrase in finance is 'past performance is no guarantee of future performance'. He mentioned turnover of the holdings of the fund- the funds themselves have turnover of the human beings who run them. The winners of yesterday are the losers of tomorrow. Many fund managers are only with a company for 5-10 years and then are replaced or retire. Buffett wasn't dumbing down the advice for the masses. Dave probably knew that - Warren has spoken in great detail about managers not being experts. *"Where are the Customers Yachts"*
@I..cast..fireball2 жыл бұрын
You are correct that he is ignorant on index funds, but he is right about annuities being trash.
@JohnBowl146902 ай бұрын
Dave is perfectly aware that stock market is not guaranteed. Everyone knows that. However, through time, the market has always gone higher and will continue to do so at a 10% average. Furthermore, you can buy govt fixed bonds in your self directed 401K, which is far better than an annuity.
@Geanne-May5 жыл бұрын
Caller mentioned income base and cash account. You did not ask him about the income base account. Getting out of this annuity he will lose this benefit that he has been paying fees on.
@tamimoncrief22642 жыл бұрын
Dave I wonder why your smartvestors pros push so hard to buy annuities? Doesn't that contradict your advice?
@My3Sons3332 жыл бұрын
That’s absolutely correct! I have thought the same exact thing. I have talked to several of Ramsey’s smartvestors and they push annuities big time! Such a CONTRADICTION. Honestly I think these smartvestors are just paying Ramsey big money to advertise for them.
@dennish46036 жыл бұрын
I bought a variable annuity life insurance policy 25 years ago costing 1600 annually for 250,000$ insurance. Today the policy has a cash value 75,000$ with a death value 300k . Was this bad? Doubled my $ while having some insurance............ should i cash out?
@rabick624 жыл бұрын
Retired this year, fixed annuity-NEVER! Very happy with my variable index annuity in retirement.
@whitneykibble79793 жыл бұрын
What company did you buy from?
@rabick623 жыл бұрын
@@whitneykibble7979 Had it backward, lol. Changed it. Bought from local broker.
@MichaelBenninger5 жыл бұрын
Great review
@tabascotae4 жыл бұрын
Getting out of a variable annuity is wreckless. What kind of guaranteed income are you forfeiting to get out of it?
@chrllamas8 жыл бұрын
can anyone name some mutual funds that out produce the S&P 500 that has a long track record?
@ClassicBMWFanInQuebec8 жыл бұрын
+christapher Llamas Everyone is trying to find it, and all mutual fund brokers will tell you they found it. I personally prefer to invest in low-MER index funds that track exactly the S&P500. This guarantees a fair share of returns from the stock market. For more info I suggest you look up the founder of Vanguard, Jack Bogle. The thing to remember is that brokers make little to no money selling index funds, so you will get some pushback if you go through a broker. If you become an educated and self-sufficient investor you can make your own contributions into a brokerage account and cut the middle man entirely.
@itrthho8 жыл бұрын
+christapher Llamas Vanguard Wellington Fund Investor Shares (VWELX) "balanced fund" (60% stock 40% bonds) since July 1929 ...the average yearly return 8.2%
@itrthho8 жыл бұрын
Those are great funds, (I'm a bit biased as I invest in both funds). I like to point to Wellington because a bit conservative for those shaky on investing in stocks and because of it being started in 1929 and it shows come heck or high water you can still make money.
@ClassicBMWFanInQuebec8 жыл бұрын
George McGovern Is 8.2% before or after fees?
@itrthho8 жыл бұрын
MiniCactuar Before...0.26% annual expense ratio for investor class $3,000-49,999. Admiral class $50,000+ at 0.18% expense ratio
@jeremyed95074 жыл бұрын
I like annuities but at 37? No sir, not unless you plan to retire at 40.
@haroldgarling10636 күн бұрын
He said 47
@jeremyed95075 күн бұрын
@@haroldgarling1063 Speaking for myself, I was 37.
@larrydesantiago52065 жыл бұрын
you give sound advice dave. but if someone had a good advisor they wouldnt have to get your advice. so people need to just find a good guy to set up their retirement properly.
@abnerschmucker17 жыл бұрын
Nice Fidget Spinner Dave!
@johnbecnel6935 жыл бұрын
Dave Ramsey said!
@tomekaridley63715 жыл бұрын
How does an annuity work anyhow? What do I need to do to get started in this?
@Masta_E5 жыл бұрын
The whole point of this video is saying not to do this.....
@demon666855 жыл бұрын
@@Masta_E Lol
@reniehandler25955 жыл бұрын
Don't do it. Invest in no-load mutual funds in a roth ira
@insideoutsideupsidedown22184 жыл бұрын
Renie Handler yes yes yes
@buckalewfinancialservices62435 жыл бұрын
It always depends on individual goal and you must do your homework before investing to know the performance of the funds to make sure it's performing well. Annuities are still good but you must be smart about where they are investing your money.
@astroman303 жыл бұрын
Annuities are terrible investments. Stop lying to people. You only like them because of the commissions. I bet you sell whole life insurance, too. Scammer.
@kgm2182 Жыл бұрын
No you must watch out for the 4x fees that annuity leeches take. WHERE you invest is a matter of choosing.
@vcp935 жыл бұрын
But da feller said it was.....wait for it....."GUARANTEED MONEY FOR LIFE!!!!" WhooopEEEEEE!!!! What's not to love? 🤪👍
@canaanatkinson78305 ай бұрын
He really does.
@TruthSpeaker38 жыл бұрын
But there was some "Step up" thing he said.. So is there a phantom account that turns into an income stream at some point? He never asked... And, it IS an Ira he said.. Ramsey loves to hear himself talk.. Eeesh
@chas7665 жыл бұрын
I believe client has an income rider so that's what his income well be based on and not the cash growth in the other. I think dave should have probed more into what the contract is vs a blanket statement
@canaanatkinson78305 ай бұрын
@sku329566 жыл бұрын
Roll over to Vanguard, 1035 transfer, if you have surrender fees ,run from all annuities !!
@rbscott216 жыл бұрын
Billy, what is a 1030 transfer?
@sku329566 жыл бұрын
Sorry here is the correct answer is 1035 exchange ,1035 Exchanges. The Internal Revenue Service allows you to exchange an insurance policy that you own for a new life insurance policy insuring the same person without paying tax on the investment gains earned on the original contract. ... You cannot, however, exchange an annuity contract for a life insurance policy.Sep 23, 2002
@rbscott215 жыл бұрын
Billy- Annuities are designed for guaranteed income , not growth. They are just a tool like any other product. If you want guaranteed income in retirement, annuities provide the highest level of guaranteed income per dollar as long as you live. Stocks, Mutual funds and ETF's cant do that. Take a look at the work of Tom Hegna or Dr. Moshe Milevsky if you want to learn more.
@wheeliewheelie6 жыл бұрын
the Annuity Slayer on youtube....
@TjEdwardz3 жыл бұрын
😂😂😂
@Thurgor_Supreme5 жыл бұрын
Annuities are a scam. If you're considering how to turn your savings into steady income, then you need to look at bond based mutual funds with monthly dividend payments.
@VinnyLogz5 жыл бұрын
What about if I’m getting one from my union?
@Thurgor_Supreme5 жыл бұрын
@@VinnyLogz I mean, there's no sense in turning it down, but you have a dumb union if that's the case.
@VinnyLogz5 жыл бұрын
Thurgor Supreme so every union that has an annuity setup for their 8,000 workers is dumb?
@VinnyLogz5 жыл бұрын
Thurgor Supreme please please have an intelligent answer. Or are u one of those extremists that just hates all annuities and is not open minded at all?
@Thurgor_Supreme5 жыл бұрын
@@VinnyLogz It's unfortunate that your union was scammed by an insurance salesman, but I fail to see how that makes me unintelligent or closed-minded.
@markmiles34225 жыл бұрын
Dave, you shouldn't comment on things as important as someone's retirement funds. Why? Your comments reveal your lack care and concern. You're more engaged in playing "stump the caller" find the carrot questions. You suggest (basically tell) him to get out of a variable annuity because of high fee's (I agree with you, the fee's are very high) in one comment, then you tell him to get into another variable annuity in another comment. You have money and success, you know it, and most likely, the viewer senses your arrogance and careless ways, like I did.
@larry35766 жыл бұрын
I have a master dex 10 variable annuity I have fulfilled my contract requirements and have sent the paperwork back to them and not one penny has been sent to me I was told I would have it in three days well it’s been three weeks now and nothing but excuses do I stand a chance of getting my money or has Allianz stoled it can I file a complaint with the government or do I need an attorney
@rbscott216 жыл бұрын
The MasterDex 10 is not a variable annuity. It is an indexed annuity. IT normally takes a few weeks to get your money. Be careful if it is an IRA account and you are under 591/2. You will be penalized 10% by the IRS. Also, the MasterDex10 is a 2 Tier product and you will lose your up front bonus if you cash it in. It is best to see a qualified insurance agent to discuss your options before you do anything.
@larry35766 жыл бұрын
You are absolutely right it is not a variable annuity I was told I would have it in three days again you are absolutely right it took three weeks I did not lose my bonus I will have to pay a 10% penalty tax for two years but I feel I can invest this money and do better
@rbscott216 жыл бұрын
Annuities are oversold by insurance agents. They are income products, not accumulation products. There are some very good ones and some very bad ones. Consider them when you are within 5 years of retirement for your income needs. This can allow you to invest funds not needed for income in growth stocks, no bonds or fixed income. Also consider working with a fiduciary with CFP or ChFC designation,
@chrisd67365 жыл бұрын
rbscott21- consider most people have no idea what you’re talking about.
@rodgraff17824 жыл бұрын
File a complaint with FINRA
@robertawhitfield24145 жыл бұрын
What’s a great annuity for employees and the age to start one???
@reniehandler25955 жыл бұрын
none
@insideoutsideupsidedown22184 жыл бұрын
Find and research good track record mutual funds. Avoid annuities like the plague..
@robertawhitfield24144 жыл бұрын
InsideOutside UpsideDown: Thanks 🙏🏽!!!
@Jdirtadventures Жыл бұрын
Fixed index annuity linked with good index options . Always consistent you’ll average easily 9-10% with no fees and a 10% free withdrawal after the surrender period. I’ve averaged about 12% with mine. Variable annuities suck.
@ryandebock62776 жыл бұрын
Roll it over into a fixed indexed annutiy. Get out of a variable annuity.
@52msdiane4 жыл бұрын
You mean roll it into index fund? Can we do that? I've had an annuity for probably 20 yrs!
@eddieschubert9917 Жыл бұрын
I just did that. Hope it’s a good move
@canaanatkinson78305 ай бұрын
He does sound like that guy.
@Guitaroverkill5 жыл бұрын
The commissions are not 4x more than a mutual fund. Over the long-term, the mutual fund would pay more commissions. The fees in the annuity go to the insurance company for the guarantees of lifetime income. Do you own a house? Do you have insurance on that house? Yes! Well, a variable annuity gives you that insurance. Guess what? There’s are fee for that.
@BigRed25 жыл бұрын
lol you get ripped off so much with Annuities and most don’t have inflation protection
@rodgraff17824 жыл бұрын
Wrong, the high fees go to pay the salesman’s very hefty commission who sold you the annuity. If you want to get out of the annuity within the first seven years or so, there is a surrender fee, that you are charged, because it takes years of fees collected to cover the commission expenses.
@sctony71165 жыл бұрын
Mutual fund is THE MOST PASSIVE investment of all. You just throw money to fund manager that's it. It requires ZERO work from your side. But buying index fund, especially ETFs requires a lot of work. It is NOT passive investment at all. This requires same work you do as you buy individual stocks. Being diversified in ETF does not mean it's passive. Also there are a lot of ETFs beats S&P 500 as well as BRK. Mutual Funds are for dummies. 99% of Index Funds beat MF - Warren Buffet proved it.
@rbscott215 жыл бұрын
Mutual funds are not passive- look at the turnover ratio inside the funds you own at Morningstar or Yahoo finance. The higher the turnover, the higher the trading costs inside the fund.
@danielestefano61226 жыл бұрын
Perfectly happy with my variable annuity, of course the fees are much lower on it than my IRA and non retirement accounts. Too bad it's not currently open to new investors, but sometimes I think too much negativity against a very useful product.
@BigRed26 жыл бұрын
Daniel Estefano Good luck trying to beat inflation lol, let’s say your annuity pays you 2000$ a month ..20 years from now thanks to inflation it will be worth 400$ lol
@larry35766 жыл бұрын
Good luck trying to get your money I can’t get mine and I fulfilled my contract requirements Allianz is the company that has my annuity so now I have to get an attorney and if I can’t sue for his fee I will lose big time
@rbscott216 жыл бұрын
I think you could benefit from a fee audit from a financial planner. Variable annuities are RARELY if EVER less expensive than plain mutual funds or ETF's. There are death benefit fees, M&E charges, subaccount management fees, income rider fees, and turnover cost hidden inside the subaccounts. Your contract will disclose these fees and may be worth reading when you can't get to sleep at night.
@rbscott216 жыл бұрын
Big Red- you are missing the point of annuities. They are not purchased to beat inflation, they are designed to guarantee income you cannot outlive. They are used as a longevity hedge. Your investment portfolio is designed to beat inflation.
@reniehandler25956 жыл бұрын
If your variable annuity fees are lower than on your IRA, then I would say your expense ratio fees are way too high. Invest in no load mutual index funds. .04%
@samdubey69484 жыл бұрын
Haha better than I deserve
@crsiroky5 күн бұрын
Gimmick
@freedom18564 жыл бұрын
And there’s a punchline, Dave has a guy you can work with that pays him to recommend their products :o what a sellout
@nrsimmons1788 жыл бұрын
Why not put it into a Roth IRA?
@ceciliahobbs4858 жыл бұрын
perhaps he's reached the limit on Roth IRAs contributions?
@rbscott216 жыл бұрын
nrsimmons178 . The Roth Ira is not an investment. It is a type of retirement account that can provide for tax free income in retirement.
@srkn1006 жыл бұрын
rbscott21 there is no such thing as tax free. Any and all dividends are tax “deferred”. Ain’t no free lunch my friend
@AdamSharkey5236 жыл бұрын
Bro, gains in Roth IRAs are not taxable if withdrawn according to the permitted schedule...