Well the reason for getting it is most money is in short term CDs... need something long term with mild to moderate risk.
Guy was tryign to sell me on a guaranteed rate of at least 6% even with market dips, and if the market does well the annuity also does well..
only problem is if first year gain is 8% from 100,00 you get 108,000.. next year if it drops 8% I dont lose the 8% of the 100,00 it comes from the 108,000.. I really have no idea on how these work and insurance companies always figure some way to fvck ya
Guy was tryign to sell me on a guaranteed rate of at least 6% even with market dips, and if the market does well the annuity also does well..
only problem is if first year gain is 8% from 100,00 you get 108,000.. next year if it drops 8% I dont lose the 8% of the 100,00 it comes from the 108,000.. I really have no idea on how these work and insurance companies always figure some way to fvck ya
he is selling you a variable annuity which has very high costs built into..ie the rider that protects against market fluctuation...also this is the highest commission paid product they can sell...email me if you have questions..I work in this industry and can answer any questions you have.
the roll up feature is for your income base only, not your surrender value.
Insurance costs money, and all costs should be explained to you. Annuities serve their purpose in the right circumstance. They are tax shelters and do have guarantees...and in order to guarantee something, of courseit will have fees involved....or it would be somehtign that is too good to be true.
There are plenty of variable annuity products can be purchased with minimal to no sales commission. There are alos other products that pay just as high a rate of commission to the broker, iE REITs, Oil and Gas Programs etc.
American Legacy Shareholders Advantage Variable Annuity is a low cost product with access to American Funds Mutual Funds.
