@@isabelalvarez2361 Were you not paying attention to the video? 1. The middle man will put your money in the stock market and charge you fees ! 2. The middle man doesn't guarantee you anything if it goes south. No government insurance on your investment. Why not put the money in the stock market yourself without the middle man costing you higher fees?
@@A.I.- 1.The holding company (middle man) will actively manage your account. Hence the management fees. The benefit of it being actively managed is the ability to move the money if the market is declining. 2. The government doesn't back any investment in the market. If you're referring to the FDIC. The FDIC is a corporation that only insures the first 250k on deposits in the bank. And will pay out $100 on every $1000 insured. So 250k in the bank during a crash and you'll recieve 25,000 from the FDIC. Why not invest in the stock market yourself instead? Well you would have to be the one actively managing the money. When you're doing it on your own you're racing against other holding companies (with more resources) to pull your money out first. Otherwise you're stuck waiting for the market to come back. That's why stocks are high risk high reward.
Why don't you just buy dividend aristocrats stocks and US treasury bonds yourself instead? most likely annuity companies are buying the same stocks and bonds while charging you a management fee every year. just less than 10 minutes of research can save you tens of thousands in management fee over several decades.
YEs, invest yourself if you capable but what happens you become ill or forgetful ....if you have someone honest, that can manage your investments at low cost, fine but not everyone is that fortunate. Annuities once set up are very low maintenance and that can be very helpful too.
I use to say the same thing and your not wrong. However some people who are really busy and may have a high income would rather do something like this because they can focus their time elsewhere.
You could set up a bond “ ladder” during these times of high interest rates…. To have each set mature on different years, one after the other!…. It’s similar to what the insurance companies do!
Thank-you for a very clear description of annuities. It makes me wonder whether annuities are built into some insurance products, like whole & universal life policies.
Annuities are good if you have every other investment vehicle maxed out. If all your money or even a majority of it is tied up in an annuity then you are asking for trouble.
Any investment is risky. If any company goes down, you lose. It can be a real estate investment, crypto, stock or forex markets. It's no brainer. Only invest what you can afford to lose. Otherwise, don't invest and exchange your time for money.
No help. Did not answer the question, what happens at the end of the term? Does the Annuity Company get to keep all your money, or do you get the full investment back?
Depending on how you structure your contract that majority of the time the client either elect for the balance to be paid to beneficiary upon death or roll it over into another annuity or liquidate
What happens to your initial investment at the end of the term or when you die? It stays with the annuity company, right? This is why you buy an annuity and don’t invest in an annuity.
My favorite investment is a dividend stock with great financials, annual dividend growth, a low payout ratio, and attractive valuation. Right now one of my favorites A.O. Smith! Let me know if there is a dividend that meets those requirements and you’ll be my best friend!
Having someone holding your money for decades before paying out is risky. The assumption that the economy "must" grow indefinitely on a finite planet is a dumb thing to bank on. Energy is driving everything, and the notion that "renewables" will simply take over from the very fossil fuels that build them is extremely shortsighted, even if one doesn't mind a world covered with ugly wind turbines. Nuclear won't save us either, since electricity alone can't do many things that fossil fuels have made us take for granted.
Please advise. I am a 73 year old bachelor who recently inherited 300K. I live in a care facility and am in good health. I have no other assets other then social security. What is the best annuity for me assuming I want the maximum monthly payout with no legacy inheritance. Thanks
The best option due to your age and what you stated yiu want the money to contractual due, a fixed annuity would be you best option. The video is primarily discussing variable annuities which I don't recommend because you better off just investing the money else where. I only advise ppl to purchase annuity for principle protection with accumulation or income guarantee.
Annuities are a fantastic way to create wealth....if you are the guy selling them.
mjs28s why do You say that
@@isabelalvarez2361 Because it's true
Bingo
@@isabelalvarez2361 Were you not paying attention to the video?
1. The middle man will put your money in the stock market and charge you fees !
2. The middle man doesn't guarantee you anything if it goes south. No government insurance on your investment.
Why not put the money in the stock market yourself without the middle man costing you higher fees?
@@A.I.- 1.The holding company (middle man) will actively manage your account. Hence the management fees. The benefit of it being actively managed is the ability to move the money if the market is declining.
2. The government doesn't back any investment in the market. If you're referring to the FDIC. The FDIC is a corporation that only insures the first 250k on deposits in the bank. And will pay out $100 on every $1000 insured. So 250k in the bank during a crash and you'll recieve 25,000 from the FDIC.
Why not invest in the stock market yourself instead? Well you would have to be the one actively managing the money. When you're doing it on your own you're racing against other holding companies (with more resources) to pull your money out first. Otherwise you're stuck waiting for the market to come back. That's why stocks are high risk high reward.
Why don't you just buy dividend aristocrats stocks and US treasury bonds yourself instead? most likely annuity companies are buying the same stocks and bonds while charging you a management fee every year.
just less than 10 minutes of research can save you tens of thousands in management fee over several decades.
That would work as well
YEs, invest yourself if you capable but what happens you become ill or forgetful ....if you have someone honest, that can manage your investments at low cost, fine but not everyone is that fortunate. Annuities once set up are very low maintenance and that can be very helpful too.
I use to say the same thing and your not wrong. However some people who are really busy and may have a high income would rather do something like this because they can focus their time elsewhere.
You could set up a bond “ ladder” during these times of high interest rates…. To have each set mature on different years, one after the other!…. It’s similar to what the insurance companies do!
A Very Clear Definition of a Basic Annuity
Thank-you for a very clear description of annuities. It makes me wonder whether annuities are built into some insurance products, like whole & universal life policies.
This is a awesome and simple video thank you for taking time to make this. I understand is an old video but still super beneficial!
Annuities are good if you have every other investment vehicle maxed out. If all your money or even a majority of it is tied up in an annuity then you are asking for trouble.
Is this Better Call Saul narrating this!?
Great info. Thanks Jimmy!
Thanks for sharing a very informative video!!
Well explained to the point I have said... NO THANK YOU!!
I see annuities as a different version of an IRA with a few different options.
Just sounds like a real bad idea. Especially the part where if the insurance company goes under
Any investment is risky. If any company goes down, you lose. It can be a real estate investment, crypto, stock or forex markets. It's no brainer. Only invest what you can afford to lose. Otherwise, don't invest and exchange your time for money.
This was helpful
AWESOME explanation!! I think the best I found so far!
“Hi, I’m Jimmy.” Now its complete
Great video!
Why TF would a person invest with an INSURANCE COMPANY!?!
Thank you for video. It’s clear and easy to understand!!!
No help. Did not answer the question, what happens at the end of the term? Does the Annuity Company get to keep all your money, or do you get the full investment back?
Depending on how you structure your contract that majority of the time the client either elect for the balance to be paid to beneficiary upon death or roll it over into another annuity or liquidate
That is why you have next of kin. Your next of kin inherits it
That's how they one i use works
Which is it, I wish to know?
Brouwerstrat-bv
Thank you for this education
Thank you for a great & simple explanation ❤️
Hey I like your style of video. Can you make a video on cryptocurrency?
So basically a hedge fund for the average Joe?
Bravo!
Thank youuuuu for thisss.
No thanks I’ll just stick to investing in Real Estate.
Times like these when I realize I'm a visual learner
Super visuals
What happens to your initial investment at the end of the term or when you die? It stays with the annuity company, right? This is why you buy an annuity and don’t invest in an annuity.
It is been rolled over to your next of kin
That's how the one I use works
@@jamescalland4280 which is that?
Brouwerstrat-bv
Ok. Thanks. I will look into it
My favorite investment is a dividend stock with great financials, annual dividend growth, a low payout ratio, and attractive valuation. Right now one of my favorites A.O. Smith! Let me know if there is a dividend that meets those requirements and you’ll be my best friend!
O (that's the ticker symbol).
coca cola
So at any point can I take all my money out of the annuity or do I just collect payments every month
You can, after a specific time you choose
That's how mine works though. I can direct you.
You need to purchase Annuity?
too complex
Wait! I'm giving you my money...and you're going to charge me!?!
lol well yea did you expect them to make money for you for free?
Stay away from annuities.
Having someone holding your money for decades before paying out is risky. The assumption that the economy "must" grow indefinitely on a finite planet is a dumb thing to bank on. Energy is driving everything, and the notion that "renewables" will simply take over from the very fossil fuels that build them is extremely shortsighted, even if one doesn't mind a world covered with ugly wind turbines. Nuclear won't save us either, since electricity alone can't do many things that fossil fuels have made us take for granted.
why wouldn't you just buy tax free bonds instead?
Please advise. I am a 73 year old bachelor who recently inherited 300K. I live in a care facility and am in good health. I have no other assets other then social security. What is the best annuity for me assuming I want the maximum monthly payout with no legacy inheritance. Thanks
Mutual fund
The best option due to your age and what you stated yiu want the money to contractual due, a fixed annuity would be you best option. The video is primarily discussing variable annuities which I don't recommend because you better off just investing the money else where. I only advise ppl to purchase annuity for principle protection with accumulation or income guarantee.
An anuity iis when you give your money to an investor and he invested gaining capital and you get penies on the dolar😂😂😂?
3 years zero gains....
This is stupid...especially all the damn fees taken out...I can just invest my damn self and get more
Sounds like a fraud that should be illegal.