What Is An Annuity And How Does It Work?
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- Опубликовано: 29 сен 2024
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My spouse and I are adding a variety of stocks/ETF to my present holdings for the long term, We've set aside $250k to start following inflation-indexed bonds and stocks of companies with solid cash flows, I believe it is a good time to capitalize on the market for long-term gains, but it wouldn't hurt to know means of actualizing short term profit
The current market might give opportunities to maximize profit within a short term, but in order to execute such strategy , you must be a skilled practitioner.
@@devereauxjnr A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far.
@@MrGravity304 Over the following 3 months, I want to increase my reserve from $280,000 to at least $550,000. I would be grateful for any advice you can give on how to accurately predict the market and how to diversify and balance my portfolio in order to accomplish my goal.
@@MrGravity304 Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé
Why would she purchase an annuity without understanding what it even is?? 🙄🤷♂️
90% or more of us don’t know how it works including myself
Asian don’t raisin Phạm EXACTLY why you shouldn't buy one!
@@hoanpham2757 Ya but the point is it was stupid to get one without looking up what it was
Asian don’t raisin Phạm that’s his point. I assume you wouldn’t invest $150k not knowing what it is.
Why would you take a prescribed medication without understanding what it even is?
This sounds like a TIAA CREF 403b. This would be the traditional TIAA part of the annuity. Her option would be to start a TPA (Transfer payout annuity) She can dollar cost average back into the CREF side of the annuity.
Ameriprise also has one of these. My wife's company put her into something like this.
I have never been a fan of annuitys. Especially when you run the present value of the future stream of annuity payments.. it is usually not a favorable investment.. there is always something better!
That's because it's not an investment. It's INSURANCE. You are betting that you will OUTLIVE your investments if drawn down on perpetually, and/or that the market will take a downturn some time before you die.
The idea isn't to get rich. If you are buying an annuity you should already be rich.
But trying to turn an annuity into an investment with a deferred annuity? Yeah, that's a poor investment because like Whole Life you are tying INSURANCE in with an INVESTMENT. BAD. IDEA.
Darin Herrick i never thought about an annuity as more of an insurance policy. Good point
can annuity lifetime payment keep up with the inflation, which means you get more every year.
Annuities are not about return it’s about the income it produces, not about the “return” Dave
They didn't teach her this in school.
They didn't teach anyone this in school. The curriculums taught in the US are one of the most destructive institutions in the world because it prepares nobody how to succeed financially, and the losers it has spent several decades producing are now giving up and turning into hyper-demoralized, brain-dead socialists. They can't think critically, they accept little or no responsibility for their lack of success, and the schools have a huge degree of culpability in this.
I know the teachers are sweethearts, and their pursuit is honorable, but that doesn't make up for how poor the institution they work for is with allocating the ever-expanding mountain of resources they continue to misspend.
@@NoGoodHandlesComingToMind well said.
Jason B yes!
@@NoGoodHandlesComingToMind its by design to keep people ignorant financially
No one learns this is school
The whole population of Illinois is calling Dave for help! Worst governed state in the USA! A financial disaster!
Either people are lying or they do not know the literature. Annuities are clearly shown to be inferior investments and prey on a client’s worries. The fees people were being charged are criminal now that brokers must also be a fiduciary.
Dave’s body language when she mentions annuities, is priceless.
Lol facts, told us everything we need to know.
Like when our new engineer came into our lab and told a bunch of car guys that she got a new car ... they were so interested, she knew it was red ... got it from used car lot ... remembered name OMNI ... lab went silent and got empty.
Means he has no clue about these annuities!
@1:01
@tydolla1539 so annuity that bad ??
That is the most fascinatingly incomplete explanation of an annuity I’ve ever heard someone give so confidently.
Yeah... it's almost like he's paid to do that....
I came to Dave's channel to hear what not to listen to. Lol
I've had an annuity for years and it's done nothing. It's my single worst investment. I'd sure like to hear why this doesn't tell the whole story.
An annuity is the bottom of the barrel when nothing else is available. An IRA, 401k, whole life, HSA or even a brokerage high yield savings acct are vastly better options.
lololol came here to say this.
If she went to them freaking out about the volatility of her account and said "what can you do so my account value doesn't swing around so much" then they did EXACTLY what she asked. They're not financial planners, they're account managers, she asked them for a product with different characteristics and they executed the request.
Robert Smithers yes however that’s like saying you come to me thirsty and I give you salt water- no excuse for them not explaining but also her fault for not verifying
@@genejohnson2738 If you run a supermarket and I ask for salt and water and you sell me salt and water then you have done your job. If you are a dietitian and I ask you if salt and water is the best fluid for me to rehydrate with then you have more responsibility. A fund manager is like the supermarket owner, they sell products requested by customers, they don't have a fiduciary responsibility and in many places have committed an offence if they provide financial advice about the suitability of those products. A financial adviser is more like the dietitian, they have a responsibility to provide competent advice in the customer's interests.
Robert Smithers thank you for the clarification.
They should have beta weighted the portfolio, so it had daily p/l swings of no more than 0.2%, not put it in annuities which make nothing in real terms.
The "account managers" took advantage of the situation, plain and simple. They're weasels just like the ones who sell Whole Life insurance. They didn't have her best interest in mind. Annuities are terrible investments. The fees/commissions they (you) charge are ridiculous. It's a mutual fund inside of an annuity. I can buy mutual funds without paying the fees/commissions that these pos insurance companies charge.
Company sponsored financial advisors just aren't very good ... had the same experience as this caller.
403(b) are tax shelters annuities and an annuity provides a life time stream of income. Life insurance protects you from dying to soon whereas an annuity protects you from living too long. Once again Ramsey just shoots advice and slanders without giving/knowing what he is talking about...
Right? If you don’t agree with his opinion you’re automatically a screwball, it’s wild to me
You don’t need an annuity inside a retirement account!
@@joycewright5386 Yeah but a annuity after you retire can be good. Taking part of your nest egg and putting it into one so you have a guaranteed income after retirement. You don’t want to lose everything in retirement and this gives you a guaranteed income.
I am going to try to be respectful here but as an Annuity Expert you get the point when someone's advice is so egregious and harmful that you have removed any form of sugar coating.
Here is where Dave is flat out WRONG: All of it.
He did not say 1 factual statement on annuities at all here. I was going to breakdown everything he said and the message got so long I had to stop and I was only half way through this video.
Please do NOT take advice from Dave on these products.
Go talk to a licensed Fiduciary.
I work for an annuity company. Annuities are best purchased when you talk to an actual firm and an actual licensed fiduciary advisor, and you have a looooot of money to invest. Some of the richest people in the world have annuities.... not middle class. Fixed annuities are never the answer. Index and Variables are the way to go if anything. Fixed annuities are only necessary if you have a 401k or something you wanna roll over to get guaranteed income for the rest of your life.
How much is "a lot of money to invest"? Is $750,000 a good amount for an annuity?
@@disco4535 Most good insurance companies require you to have at least 100k liquid.
@@disco4535 you can start an annuity with as little as 2,000. Some companies 5,000. Depends on if it is a rollover or if it is cash, and the carrier you use.
Will that be better annuity be better than a roth
@@MrIgonzalez85 Roth's are the better option for growing. Annuities are better for preserving. Stick with a roth until you're at least 60-65.
My mother has a fixed annuity that is paid up. She was allowed to withdraw some money at any time. The annuity was one of the best things she did because it was a passive income that kept her afloat for a few bad years.
That was dumb
@@rernardallison807 not really. To this day she gets hundreds in free passive income from her annuity alone monthly. Collectively I have her earning north of $1k a month passively and never have to worry about her money being lost. Thanks for your wisdom though.
@@rernardallison807 Thanks for your wisdom. She's doing well, growing her savings well into retirement and never worried about emergency expenses. The annuity was the best thing she ever did. Coupled with high yield rates in banks she's making more than some people going to work.
How so?@@rernardallison807
You’re mother got scammed
The fact that Dave instantly grabs his head just as soon as she says “annuity” tells you all you need to know in the first minute of the vid!
He’s grabbing his head because he doesn’t know what he’s talking about.
@@trevormaxwell3703 So tell us how it really works.
@@TheFishdoctor1952 I'll tell you. The woman had $500k in retirement. The only way Dave's dislike for annuities work is because annuity money is as accessible as other cash. He tries to make things simple. He had to exaggerate a reaction. The right response to this woman was, you did a great thing. You invested in something that will keep giving.
@@trevormaxwell3703 He’s just become a multimillionaire for making many mistakes! Don’t speak when you don’t know what you’re talking about! You judge somebody by the record that he holds and he is very successful doing what he’s doing! So he’s doing something right correct?
@@robertlulek1634 he’s become a multimillionaire because he has an incredible branding and marketing team, if you want to be able to live like him, stop taking his advice and learn how to CREATE wealth.
ughh these youtubers keep making you lose your money
because everybody can't be using these strategy and expect it to still work for everybody. the big money strategy will never be uploaded on youtube but kept to ones self. if i had the secret formula, i wont share it i'd help people out for a price that is why i always advise getting professional guidance, Mrs Maureen Kay Bryan taught me how to keep a million dollars and she is not even a youtuber.
@@emilyhowe3359 exactly nothing actually beats first hand experience
its like getting war advise from a desk agent
@@tonimhamilton2072 lol i know right
@@emilyhowe3359 i just googled her and she seems truly remarkable. does she really work for you? can she work for me?
It's sad how Dave continues to speak on products he does not really understand but plays the part for his listener's. Stay in your lane Dave, and stick with the baby steps program as that and your marketing team is what got you to where you are.
What was wrong with his advice to this caller?
Nothing Derrick doesnr get it
Derrick I totally agree!!!! Fixed Indexed annuities are great products and I am pretty sure Dave doesn't know everything there is to know about them. Unfortunately there are a lot of people that take everything he says as gospel and don't do any further research which can steer people away from something that might be in their best interest.
If I don't understand it I WON'T BUY IT OR I WON'T INVEST IN IT.
I concur, I have that exact same mentality and that's why I'm still single :(...
I agree with this but a lot of people don't
Dave doesn't know math. You don't recoup after loosiing 10% by earning 10%, You need to earn slightly more than 10%
I was an annuity for my mom when she divorced my dad.
@Josh lol
I'm so sorry
That's a popular one
Monthly check for her mortgage
3:12 for definition of annuity
You're a genius. Here's a 😘
Thank you, bro!
Thx
Not all heroes wear capes. Thank you.
you are deceptive. you know for sure there are indexed annuities that protect principal and you ignore it. very deceptive.
Not all annuities are built the same. Most allow for a percentage withdraw each year without penalty. You made it sound like all annuity contracts have a 7 year surrender period. FALSE!!
Where the F*@K is Dave finding 10% returns in 2020? Honestly it's pretty great that these videos live on the internet forever, because this video aged like milk. Most people got trashed by the market from 2020-2023.
Tanya, you didn't make a big mistake. You have $500k of retirement. You don't need to touch the money. I have something similar that a Ramsey sponsored advisor got me. Five years ago I put $82k in an annuity. It's now valued at $189k, that's a return of 19%. Dave is famous startling people. At the core he's good, but there are moments he's just blind. This is one of them.
Amazing- Annuity are good investment vehicle for the right age group
@@tshah90 What age group is that?
@@keithduchnicki349 if you have any questions please reach out to me
@@tshah90 Nope, I'm good!! Or, to barrow a tag line, "better than I deserve."
@keith duchnicki was that a fixed annuity or variable?
I watch you for the entertainment value. I'm truly a fan of you helping people (like myself) with financial literacy. However, when you said "2%" and "fees" I knew you didn't know what you were talking about...OR!! Your research sta$$ found in$ormation somewhere else.
Social security is an annuity , wtf is this guy talking about ..the MYGAs I’ve seen have 6.3 and 5.3% and some FIAs give 10-20% upfront ! Buddy is uninformed who tf is doing FAs with 2% you tell a retiree to put all their money in the market and when it crashes and they lose and die before it recovers who really the screw ball??
we gotta stop this and take responsibility for our finances!
Typical Dave who talks bad about products he doesn’t know anything about.. smh
Dave what a joke... you need to be stupid person to follow his show advise.... my god!!!
You can make more money with stocks than with Annuities.
@@Eric-bq1jo you can lose more money. He doesn't know about indexed annuities. There is fixed, variable and indexed.
@@yitzchokschwartz3699 Only millionaires follow him, not broke as a joke clowns.
Always be careful with this sales people. Especially for anything that concerns "Accounts or investment". Never make a decision on the spot. Ask for minimum 1 day to make a decision. USE THAT TIME FOR DEEP RESEARCH Before making any commitments..
H&W Lifestyle TV yeah I won’t even buy a car without sleeping on it. Deals NEVER disappear same day.
That been said. Don't get me wrong there are Genuine sales people out there. Not all are greedy. Personally I have met plenty of sales people who have landed me great deals so its all about asking for the time off for research if its a topic, or field that's new to you.
dave is a salesman too. he cross sold his elp before taking what may or may not have still been a solution for this lady to the woodshed without all the facts.
@@rhavard101 And your boss lets you sell your competitors products and services? Good to know.
She was freaking out about volatility and they helped her reduce volatility. It's her fault not the consultant's fault that she regrets it.
100% She was spending too much time looking at her 401k. Set it and forget it.
They shouldn’t just put her in an annuity, the right thing to do would have been to beta weight the portfolio so the sharpe is then higher, not to put it in an asset that makes nothing!🙄
Romil Patel What makes you say an annuity doesn’t earn gains?
Daniel Leon
After inflation of 3% an annuity only makes in real terms 1%. A proper actively invested portfolio should make 30% in real terms.
Romil Patel I have a client who earned 28% in her Variable Annuity. Your statement is inaccurate.
in before the insurance salesmen start commenting to defend annuities.
what about her sleepless nights with mutual funds? What do you recommend? All ears.............
@Jacob Derman only works in books, not reality.
Jacob Derman and forget and come back and look at it now and realize ever since corona your account is down another 20%
He said there's only two types of annuities. 🤣🤷♂️ Dave needs to educate himself. Annuities are great replacements for bonds.
Jacob Derman Yup! Discipline to not check it but once a quarter and just keep shoveling it in.
I've been teaching financial professionals for the past 11 years on annuities. What happened to this caller is unfortunate and irresponsible of the company. With that said, Dave's explanation of annuities is skewed, generic, and high-level. There are no 40% surrender charges. I know Dave's being facetious. There are roughly 12 different types of annuities, not 2, and Fixed Annuities are paying over 3%, not 1% - 2%. When this video was uploaded, fixed rates were close to 4%. You don't pay extra fees for all annuities. Typically you pay fees for an additional benefit like an income rider. There are annuities without surrender charges (Return of Premium) and short term contracts. I like Dave. I respect Dave. I don't think Dave is very educated in annuities, and I don't expect him to be an expert in every financial product. A jack of all trades is a master of none.
@Phoenix The problem is that what you pay gor the annuity can be invested conservatively in fixed income products for better cashflows. As a financial professional, I'll just leave you with the tidbit that annuities carry the highest sales commission of any personal financial product... that tells you all you need to know.
Saying “never” is irresponsible because he has not sat with any clients and has no clue of the situation, clients risk tolerance, goals, debt etc. getting financial advise from a guy on TV is dangerous.
Fixed annuities are HORRIBLE investments. After fees/commissions are paid, the ROR is around 1 - 2%. You're being vague about the pitfall of annuities. They're just savings accounts with an insurance company. The variable annuity gets invested in mutual funds while charging the client extra fees,
Is'nt Dave really just opposed to salespeople taking huge commissions from Annuities
@@nickstrapko7549 Nah dude, he's against people getting ripped off which is what annuities do to the consumers.
He has not idea what an annuity is 🤦🏻♂️ 😆
Is that YETI tumbler glued to the desk? It never moves! 🤣
I dislike annuities as much as Dave does, but he is giving such a poor description of what they are in the second half of the video. An annuity is simply a series of payments made at equal intervals. The payout period can be for a fixed term or based on the life of a natural person. Later, a second class of annuities was created, called a deferred annuity, which allowed for an accumulation/growth phase to occur prior to annuitization. Then deferred annuities were segregated into fixed products and variable products, with some products allowing additional deposits during the accumulation phase.
Also, he did a poor job addressing the caller. It was pretty clear to me that she has a 403b with TIAA CREF, and that she was advised to allocate a portion of her account balance into the TIAA Traditional subaccount, which pays a fixed rate and cannot lose value. TIAA Traditional has a liquidity provision that exiting must be done over a period of no less than 10 years (which is why she correctly mentioned this).
The TIAA Traditional product is a uniquely wonderful product as a component of the bond portion of an investor's portfolio.
what is an annuity begins at 3:15 he doesn't really explain what an annuity is.
Probably because he obviously doesn’t know.
This is a very specific and fragmented view of annuities. For the caller in this video, she was worried about the value of her assets moving up and down, and her advisors suggested a partial investment into a product that provides stable income and then she wouldn't have to worry about all the volatility. The advisors could have chosen other products but to calm someone who cant sleep at night...they offered her a solution. For someone her age(im assuming she's 30-50 years old) it's probably best to invest in mutual funds for the long term, but that isn't what she asked the advisors to do. It's easy for Ramsey to sit there and critique
I agree with you. There is multiple Annuities in the market and people should select based on their need. I'm working client on annuity that will return them minimum 6% and max 14%.
Bingo. I can’t believe he said a fixed annuity is NEVER a solution. I’d rather get a fixed annuity than a volatile variable annuity if I was in or near retirement. The advice wasn’t bad and potentially would be ideal if she was retiring. Why would he suggest mutual funds with their ridiculously high fees? If you can’t navigate securities maybe some ETF.
@@BamifunI dont have the energy to respond to Dave but what you said!
There are NO fees on fixed annuities.
@@jerryspivey1949 - There are penalties however. No thanks. I can manage my own money and not penalize myself if I need to get to that money. Furthermore, I can easily outperform fixed annuities.
I sure would like to find those Mutual Funds that pay 10-12% a year consistently.
lol
I was given the choice to take a lump sum at my husband’s death pay a penalty of 30% bringing me to like 40k or an Annuity for the rest of my life up to 100k but I do pay taxes on my monthly amount I only took it because over time it was more money for me.
I believe there are certain annuity products that can be good but it is mostly based on your age. A person in retirement or near retirement who is looking for a GUARANTEED income stream may want to put a portion of their nestegg into an annuity. There are products with zero fees that have a low return and low risk and there are products with high fees that have more guarantees. A 70 year-old is hurt a lot worse by a market downturn than is a 40 year-old so removing risk is attractive. Taking risks as you approach retirement is for people with a LOT of money, not for people with $250k. Taking risks at 30 is how you get wealthy.
Dave's advice for getting out of debt is the best available but his investment strategies are not always the best. I was following his steps before I ever heard of him.
This. My parents retirement advisor took some of my parents into two annuities after they retired and they switched over their 401k and pension. But yeah I would never do this before I retired. I think my parents get like 3k from them every month.
@@hurshrd654 HI, excuse my ignorance, but what happens to the capital....and about how much gets you 3k a month?
@@ddddddno24 My parents invested close to a million dollars from My dads work retirement accounts. He had a pension he took in a lump sum and a 401k. After he retired they both got invested.
@@ddddddno24 With that 3k a month the principle doesn’t get touched. They can also take out up to 30k a year if they want to buy something big. They did that recently for a car down payment.
They. can also take up to 30k more a year if they have. Big purchase to make. They did that recently for a healthy downpayment on a car.
I'm so glad I didn't fall for an annuity when my bank tried to sell it to me years ago, my gut instinct told me it can't be a good thing if my money was frozen for ten years.
@Truth Genie A bad investment vs a bad illiquid investment. Ill take the former if forced to choose.
is every subsequent payment into the annuity frozen or you just have to wait 10 years from when you start the annuity to be able to dip into it without penalty ?
Everything about this call is messed up. Her job is offering her retirement plans all of which will have a penalty if she moves money too early. They advised her to move some money to an annuity because she can avoid the market volatility. Dave lies by using the word “probably”. Fixed Index Annuinties averaged 9% in 2023. And while mutual funds lost 17% to 25% in 2022 fixed index annuities lost 0%.
@@Chris-es3wfMutual Funds are not liquid. Who told you that? Whoever it is you should confront them and let them know they lied to you.
@@twoods3364mutual funds are liquid. You can sell them and buy something else, or cash out, in a couple days.
That is clearly a liquid product.
For comparison, if money had been invested from Jan 2019 to Dec 2019 in a portfolio of 50% Bond Fund (VBMFX) and 50% S&P 500 (VFINX), then your return would have been 19.97% over that period of time. She missed out on high returns in Mutual Funds, and the tax deferral was NOT needed because it was already in a tax deferred 403B. I would complain to the insurance department in her state, and have lawyer send them a letter to undo everything, to not pay the surrender charge (penalty).
Also in my opinion, most Variable Annuities have very high fees, and are not necessary for the majority of people either.
"A fruit jar at least doesn't penalize you." Never heard that one before 😂
How can you take advice from someone whos not certified in this topic? Not even a subject expert. Get your life license and series before talking your nonsense.
It's amazing he spends the time on his show giving financial advice, then at the end of the show disclaims he is giving financial advice. He holds no license to be giving financial advise. He doesn't understand insurance, or annuities and gets them wrong when discussing these financial instruments.
WHERE IS UR SHOW?
@@AA-td1yw yep. It's a show.
@@edwardquisenberry9429 lol
Why does one need a license to understand that annuities are garbage?
Wait, did Dave Ramsey just advise that lady to remove her money from the annuity without even hearing what the rate of return was, or knowing any specifics??? This is the reason why people with no investment licenses should not be advising people.
He specifically tells her to look at the return rates because he knows they’re lower than any common mutual fund. Are you retarded?
A co-worker of mine told me to invest in Amazon years ago. It was great advice. He did not have an investment license.
@BillyO8828 What a silly comment. We are not talking about a couple of friends sharing ideas. We are talking about a guy setting himself up as a financial guru who clearly does not even have a basic understanding of what he is talking about. Passing the exam for an annuity license shows a person at least has an understanding of them, and the test is very difficult because there are so many different types of annuities. He didn't even hear what she had before making his "recommendation." How can this be allowed by state and federal regulators???
Imo, there is a lot of misinformation or lack of information in this short clip. I don't agree this was a wise investment decision, however, there are typically no fees on fixed annuities and fixed annuities are completely different than an income annuity. I'm going to make a video explaining the difference. Hopefully it will help clarify some of this confusion
Danielle, I went to your site but don't see the annuity video. I hope you do make it. It sounds like you know more than explained here.
@@ericksonsails Hi Diane. Ah thank you so much for the reminder! I just started YT so am still trying to get my flow of consistent uploads. I will do that for my next video for sure! My channel is a makeup channel for those over 30 where we discuss a finance topic of the day so I will include that topic for my next video this week 😉 Thanks again for reminding me!
Where is the video? I looked an its not there 😒
My investment advisor is pushing annuities also. I asked her "when do I get my principle back?" and the answer was just too squishy for me. She's pretty much fired at this point.
The principal goes down as you withdraw your yearly. It goes against it. So you end up using the money as income. But if you outlive the annuity then is to your advantage. Then you start earning additional that you didn't put in. It was explained to me in a way that this is how I understood it.
An Annuity is a good place for her “safe” money.
“Take your penalty and put it in something that earns you 10%”, says Dave. WHAT can guarantee her 10%?
Finally! A new topic
Agreed. Another caller explaining how they want to keep their debt then getting whacked by Dave is only worth hearing 99 times. Ha!
i wish more calls were like this, when i listen to him live, its always some stupid people wanting to take a loan out on a car or some other stupid questions that they already know they answer to. I made that same mistake and costed me over 8 grand due my stupidity. I wish i knew about Dave before i signed up for universal life insurance, my surrender charge was about 8 K . only getting back around 4
Bannoura, I'm not sure why you made a decision to get into a universal life insurance product, but what was your goal? For example, fixed index universal life can be one of the best retirement vehicles on the planet. I would compare it favorably to a 401k or other plan almost every day of the week.
@@johnnyvegasretirementplann5442 i was stupid. I got out, lost 4K, but glad i got out
@@Steven-yx1ic Do you mind my asking why you feel you were stupid? I know that IUL's are long term solutions for retirement as opposed to short term "investments." I am curious what your initial intentions were. Thanks for your help, I am always trying to understand motivations.
we are for fasdfsadfasdfsadfuassdfsafrssdfdsafsadfsdfsafsadfasfasdfsdafsadfsdfsafsadfsadfasdf
Yeah why would those people ask stupid questions about wanting a loan from their 401k interest free that’s reliable to drive them selves to work and their kids to school. How evil and time wasting of them. 🤨 can’t stand people like that.
The fact that her employer offered this “service” says a lot.
I'd like to know what kind of mutual fund is getting 10% right now.
Year to date VINIX is up 26.31%. This is Vanguard's S&P 500 index fund. The average return over the past 52 weeks is 19.76%. This lady has missed out on $31,616 over the past 52 weeks in growth as of today. She instead got $3,200 or 2% on her $160,000 for her annuity. Ugh. Feel bad for her.
Dave’s
A lot of them are right now. S&P index funds are doing over 20%, RIGHT NOW. But you never know when the market will crash like in 2008. Nothing wrong with hedging your bets and investing in multiple things.
NONE
Is asset protection perhaps a reason for an annuity. I thought money in an annuity can't be reached by creditors. Anyone know?
A guy selling insurance told me that. A way to protect your money from creditors, wives etc is to put it in an annuity.
Since annuities are up for a visit, let us remember all the "pros" about a traditional deferred annuities. Dave, you are wrong about a retirement strategy that includes an annuity for diversity. A fixed annuity does not have a down side, in that one is 55 and pays New York Life $100,000 and receives a guaranteed monthly income for life starting at age 68. The money is safe with this company and one has "pre-paid" for a pension. One can possibly make more with that money but there is risk. If one already has an IRA, a pension, a spouse with a Roth IRA, and they will both be receiving Social Security then what is wrong with take part of their money and diversifying the retirement portfolio to include the fixed deferred annuity. Your influence is great Dave and I am a fan of yours. In this case, you may be doing a disservice to some when this product has a place in some retirement plans. A couple has, using my example, taken $100,000 and they know what the monthly will be at 68. Too many do not allocate properly in the market as the mature and no longer have the time to make up for a 25%-30% market down turn. Annuities of this nature have their place for some people. Thank you sir.
Thanks for that Todd. You took what was in my head and laid it out.
@@RobTheHandsome1 Thank you for your nice comment Rob. I appreciate it. Have a super day!
Cause it sucks to be robbed by New York Life is my answer. No sale.
Especially lately!!!
Lol she's nor Eben close to retirement...if she went mutual funds she could easily stomach a 25% drop by retirement and still outperform her annuity...
A fixed index annuity doesn’t have fees. Dave has no idea what he is talking about. And they pay out way higher than 2 or 3% I have actual statements I can show people where the returns were really good. Much higher than 2%
It's true, he doesn't even begin to address that and just stresses out this woman who may have put her money in a solid plan. He's far too emotionally volatile. It's like if you don't invest with him, you're making a terrible mistake.
Almost every financial product has some type of fee. Someone has to manage your strategy unless you are hiding money under a mattress. But there are some annuities with very good rates of return, especially compared to a CD. And since they have a floor, they can't lose money due to market volatility. Anyone else get smoked by the recent market downturn? Not those in annuities...
You are a fool, there are NO free lunches. They steal plenty to say NO fees. Grow up
Dave’s wrong, it’s a income stream. It’s not the end of the world. It’s peace of mind. A income stream. What do you think Social security is? Just make sure you get Income annuity 20 year joint life with period certain. That way it even passes to your children. Pensions are even annuities! Is financial peace.
So is having millions of dollars invested fool.
@@matthewsnover1847 Enlighten me. Matt
@@alinatamashevich3354 Clearly you spend quite a lot of time watching Dave’s videos. Either he or your surrounding has quite the influence on your character to call someone you don’t know a fool. Before being a snowflake, pls check yourself and pray for the person you might disagree with.
What I think social security is- is a Ponzi scheme that steals all your money!! Social Security has a -4% rate of return (insane)
Dave said “take it out and put the money in something that makes 10%. Seriously? 10%?? He also said Mutual Funds. I hope this poor lady didn’t take his advice.
Expecting the s&p500 to keep going up 10-20% a year is foolish.
You never know when another 2008 event will happen.
No one expects the S&P to always go up 10 to 20% a year. However, there are other mutual funds in particular aggressive growth funds, that do have a track record of 10% or more a year for the past 30 40 years.
@Indio Hatuey and it will go up again. I got in to stock when the down hit 22k. I got out once it hit 29k. Now, i am looking for the bottom of this dip. I was eyeing getting back in when it slipped under 25k again. But we'll see.
ineedhoez hopefully you didn’t “buy the dip” after it slipped under 25,000...since it just 18,917 today
@@laynegibbs1097 lol buying the panic doubled my retirement fund this year 🤣🤣
Are we going to acknowledge how terrible this advice was and how dangerous it is when you don’t know what you’re talking about? Some Fixed index annuities at that point had 50% par rates which would offer the ability to grow at an average of over 6% historically. What terrible and dangerous generalized advice. You should be ashamed of yourself.
I find it INSANE that he automatically said, "it was a huge mistake" without having ANY knowledge of how the annuity was set up, what the interest rate is, or what her full financial picture looks like, or even knowing her age. Then he calls licensed financial professionals "screwballs" and "idiots" and then directs people to his network. Then he says her annuity is "substandard with a horrible rate of return" when she doesn't even know what rate she is getting, and neither does he. Ramsey has no insurance or brokers license and has no business advising people.
I was going to make a similar comment. His "SmartVestor Pros" all charge upfront sales loads as high as 5.75% on the mutual funds they push.
Never trust a slimy sales guy always go for the teacher
the biggest issue with Dave Ramsey is that he can say whatever he wants without accountability because he is not a registered adviser. He holds no licenses in any state. He makes total blanket statements that he doesn't know what he is speaking about. Remember, people, he is not doing this for charity. He is trying to get you to join his program, and is paid by the companies he endorses. How come he only recommends some of the strongest-rated companies? Only mid-tier or low-tier hint they pay him.
What about a index annuity?
Thank you!
This guy is a clown
I don't know...depends on your age..and how much you got to put in the annuity..if you're near retirement age drop a huge chunk in there..that annuity will pay you for life!
No free lunches. Learn that and repeat it over and over till you live it.
There are also Index Annuities. Some offer 1% garuante and Uncapped Growth meaning you gain with the market. There might be a spread of about 1 to 2%. There is no management fees that eat your investment as mutual funds. There are no fees on Annuties unless you put an Income Rider or you pull your money before the surrender charge.
Still a terrible product!
Horrible product folks they ones that like sell them making BIG money on fees on top of fees !!
@@alinatamashevich3354 - By what means?
@@tioswift3676 They keep your money! By that means!
@@alinatamashevich3354 - Literally ever my financial advisor takes 1-2% of people’s ACTUAL hard earned money, every single year, in perpetuity, regardless of performance. Tell me why you’re totally cool with that, but not someone being paid (and NOT your money, the company pays the commission, not you) and ONLY ONCE on for?
I mean the financial advisor gave her what she wanted
I love immediate annuities. You get Income for life.
Yeah you just make 1/3 of what you could have stupid
There are NO free lunches, Carla
I have had annuities for many many years. I have never regretted my investments. It was not a free lunch. I bought the annuities. Have a blessed day.
Lemme get this straight. Lady says she doesnt want risk. Tbey give her a product with no risk and Dave says terrible mistake. Put it BACK into an asset class that she didnt want in the first place. And i see this quite often. People always say they dont want risk but dont really understand what risk entails.
Perhaps he should advised her against investing in GM stock but i digress
I need to call my banker and see how I can get out of my annuity.
Dave is wrong there are fixed index annuities that get anywhere between 6-15% rate of return
That's where he lost me.
I own my house ...no mortgage...my intent is to leave inheritance for my child's children.. recommendations welcome. I was contemplating annuity for myself. for later on if I ever decide to retire. ..
Just get a will made.
@@astroman30 probate?
@@cherylbalogh6098 The federal inheritance tax stars at $11.7 million. Most states don't have an inheritance tax. The ones that do (Kentucky, Massachusetts, Maryland...etc.) start between $2 million to $5 million. Even if you do fall in that category, seek advice of an estate attorney before going out band buying a trash value policy.
@@astroman30 probate is different than inheritance tax, right? Is the person leaving a house to the kids?
@@cherylbalogh6098 Estate tax vs. inheritance tax. The only difference between inheritance and estate taxes is the person who pays the tax to avoid probate. Unlike an inheritance tax, estate taxes are charged against the estate regardless of who inherits the deceased's assets. Again, same rules apply.
One misrepresentation there are 3 fixed variable and indexed. Why did he leave that out.
I agree, why DID he leave that out?
GMYA
Yeah, but she was panicking about the risk so they put her in a low risk product and that’s basically what she was panicking about so she only has herself to blame really they were just doing what she wanted them to do, which was take her out of the roller coaster ride. But they should’ve explained to her that it’s a better ride lol.
Mutual funds aren’t the only options To make money, the fact that they took advantage of her was really wrong, because they didn’t plan the whole annuity right. Remember everything has to be structured correctly, and the Annuity that was done for that person was done horribly wrong, but it doesn’t mean an annuity is bad. There are companies and agents who work on fixing this that can actually help. And when he mentions that there isn’t an annuity that can’t help anyone, he is also wrong as well. Just as much the stock market isn’t for everyone, nor real-estate, and just as much Life Insurance. Do your own research talk with life insurance companies talk with investors, read books and not get one side of the story. Learn and grow!
Let me ask you. Are you a Investment Representative?
Never call JG wentworth 1877 Cash Now. They will rip you off!
Ibhenriksen but it’s my money and I want it NOW!
Isn't JG Wentworth a loan shark?
@@JK20239 No. They handle structure settlements but they eat up a good portion of your money.
But their commercials are the best!
dave you need to read up on annuities. Please stay with what you know. An Indexed annuity is a suitable product with no market risk and good possible returns
News Now Uber when he said they only make 2% interest I knew he didn’t know what he was talking about. He has no clue. Indexed annuities have no fees and they can make 10% interest gains, or sometimes better.
An indexed annuity is a variable annuity what he was talking about was a fixed annuity.
Financial guys hate annuities because it takes away from their business. I will agree that in this instance a fixed annuity might not of been the best call, an indexed annuity would give better returns and addressed her worries about volatility in the market
Fixed annuities bad, I'm 71, in a variable annuity and feel good about it.
@@Phlfwlr Prove that!
Maybe it's better if she just roll it over to roth ira buy blue chips stock that's pays dividends and grows over time. The time she reach her retirements the money compounds and she can withdraw it tax free
*Mr Zelly Chapman is legit and his method works like magic I keep earning every single week with his new strategy.*
wow I'm just surprised someone mentioned and recommended expert Mr_zelly Chapman I thought I'm the only one *tradlng* with him
@@penylop832 you don't need to be surprise because I'm also a huge beneficiary of expert Mr Chapman .
@@penylop832 He Has been handling my account for a while now
Co n t a c t e x p e r t Zelly Chapman via.
W h a t s 🅰️ p p 🆔
You cannot guarantee 10-12% returns in a mutual fund.
Explain plz
You cannot! People who know how to invest can.
Why would anyone buy an annuity when social security is basically an annuity itself, in that it’s guaranteed income for life?
Well if she loses 10% in surrender charges, 11.11% to recoup it back. It's minor diff, In financial world this is basic. But being a math wizard is not Dave's forte anyways. He could have said lil more than 10% percent to recoup.
As someone who has been in finance going on 24 years; 15 of which have been FIA's, or "annuities," Dave doesn't ask the right questions, although this one sounds way too young for this to be suitable. As far as Qualified or "retirement" money? That depends on the goals and objectives of each individual. Dave: did you know that there were a few FIA's that beat the S&P a few years ago over a 10 year period? So the investor was not only guaranteed not to lose a dime, but beat the S&P? That's not what these products are made for; as Gene Rogers once said "I'd rather have a return of my money than a return from my money." Also, other than safety in lieu of grand growth, these also are great lifetime income additions to add to SS needs that aren't met. I've watched far too many seniors go through 20% of their assets per year thinking it'll always be there. Love ya Dave, and think you are great at debt relief. As to investments? May want to stay in your wheelhouse. Cheers.
Agree 100%. He needs to stay in his wheelhouse.
Well said! Fact finding is everything with annuities. Asking the right questions to deem if it’s a suitable sale. There are a lot of different types of annuity products that are designed to accomplish different goals. Annuities aren’t bad, the product just has to make sense for that specific client.
Jim, you seriously think a man worth more than 250M has clueless investment advisors? Sounds like you collect a huge payout selling this garbage. Adios Jim, move along nothing to see here
@@freedom1856 You cannot afford his investment advisors, Free-Dom. Stay in YOUR lane.
@@alinatamashevich3354 you are the only one who is ignorant here.
A man, Dave really is stuck in the 80s. LO l, this is terrible advice. They now have and have had. For years, index crediting where you can't lose. Because there is a 0 floor.
why do you think these guy's offered to give your company's employees free financial health checks? they were trying to sell a product. Any time someone is offering you something for free always think "what is in it for them?"
This is such bad advice and I’m losing confidence in Dave. There are indexed products that can also produce income streams. There aren’t only two products like he suggests. Please do your own homework
Fruit jar 😂
Wow…. Ramsey’s advice might be right on n when it comes to debt, but it’s absolutely ridiculous when it comes to life insurance, investments and annuities. The advice he gives to the caller is at the very least borderline irresponsible, is incomplete and misleading, and demonstrates an utter lack of understanding of how life insurance and annuities actually work. Stay away from this advice and look for someone who actually knows what they’re doing when it comes to setting up retirement plans that actually help you achieve your goals.
My head was in my hands before Dave did. Wow and ouch. There is a finality with annuity , the fact she doesn’t know worries me. It’s 6% max after inflation.
Overall I think government bonds which I have a 6.1% yield for 20 years is a safer and better deal than even a 10% annuity here in 2024.
Why does he assume the interest rate is 2%?? Lots of assumptions, here. I've never heard of an annuity that pays 2%! Most pay upwards of 6%
Why does Dave assume she's only making 2%? It does depend on how much stock risk the annuity allows her to take on, but if the annuity was 100% invested in stocks, she would've still gotten over 20% in 2019 after the fees of the annuity. If she's in a fixed annuity, than yes, probably 2%, but Dave shouldn't speak on something he doesn't have all the info on and she obviously doesn't understand what she's doing...it doesn't mean it's a bad program. Sometimes I wonder if Dave fully understands the various annuities out there...fixed, index, variable, structured. Get educated Dave if you're going to speak to individuals as if they are part of the masses. What might be right for one, may not be right for the other.
The only way she would be able to get to 20% is she was in a variable annuity and at that point you might as well be in mutual funds. Even if its an indexed they max out at 8% or so, so you might as well have the downside risk with mutual funds to reinvest dividends at lower prices when your investment horizon is longer than 10 years. Dave doesn't know that much about annuities but they should really only be used for retirement not in a 403b.
Lies and more lies which equal full gospel math from dave. First, there's many types of annuities, fixed, indexed, variable, mygas: some may be little as one year then over, others a lifetime; some are terrible traps, others a great fit. Second, she was having sleepless nights over her great "mutual fund" portfolio. Many index annuities outperform bond funds with current interest rates, so what do you recommend better than that; sleepless nights? First find out exactly what you have, which Dave broke his own first rule. Second, see what's better out there if any. Third make the change.
Why listen to somebody who got rich selling self help seminars for investing advice and claims he can outperform the market at 13% but never lists his investments the past 10 years....FULL GOSPEL MATH!!!!
LMAO. Ramsey would suggest Surrender vs collateral that can be put in the "recupe".
With how volatile the market it right now an annuity might be the perfect spot for some of your money. Is an annuity going to double your money? No, but that’s not the goal. The goal is to keep your money in a spot where the market down turns doesn’t affect you and you still get some growth. You still have access to your money, you can pull up to 10% of the account out every year without penalty
But then you miss out on the highs when it goes back up. A annuity is good though after you retire. Taking a portion of your nest egg after you retire so you have a guaranteed income.
They are called chicken little investors.