Posts Tagged ‘equity’
Elderly mother aged 86 with $250,000 debt – no equity?
08
Mar
This is the kind of story you’ve been reading about in the news lately. My mom is now 86. Always very private with her finances. She has lived alone for 12 years on fixed income from my father’s military annuity. She recently had a series of severe health problems. This is when I find out how much trouble she’s in. Due to predatory lending, She has mortgaged all of her equity in her property away to stay where she was living, including $20,000 in credit card debt and a $50,000 2nd mortgage loan. The last mortgage was given to her at age 84! Now, once her bills are paid, counting insurances and utilities, she was left with barely $100 to buy basic necessitates without using credit.
Her last bout of illness took her short-term memory and she is now unable to live on her own. We have checked her into an assisted living facility. However, the cost of this facility consumes her $2800 per month annuity. A she probably has only has a few years left, do we declare bankruptcy for her? Do I stop paying the credit card debts? Do I let them foreclose on the mortgages? How do we or can we protect her annuity from the creditors?
Is American Equity Life Insurance Company a company which can be trusted?
25
Feb
American Equity sells fixed annuities, Have they ever defaulted on paying there customers there monthly payments on fixed annuities or any other investment?
Why do equity indexed annuities get a bad rap?
19
Feb
When one will likely earn long-term gains comparable to the market without any risk of loss, what else could be better in today’s environment?
Net Advisor confuses attributes of EIAs with those of variable annuities. The only potential for loss of principle or previous gains is an insurer’s insolvency. Insurance companies have, and can, go under, but no insurance or annuity policyholder has EVER lost value due to a company failure (anyone with Net’s alleged experience knows why). Other than this virtual impossibility, there is no way to lose value in any fixed annuity.
High fees: Guarantees and illustrations are presented net of fees. The numbers are completely transparent. Commissions aren’t high for a one-time, versus transaction fees in most investments.
Free lunch: The companies credit in such a way as to minimize their risk. Over the last decade, however, many EIAs indexed to the S&P actually outperformed that index for three reasons:
1. They offered a bonus on initial deposit.
2. In years when the S&P lost value, the annuities indexed to it didn’t; they earned 0.
3. Gains credited can’t be lost in future downturns.
what are you thoughts on equity indexed annuities?
19
Feb
They usually dont have any fees (annual or funds) attached to them like VAs do. And they dont have the downside risk since they are not actual funds. Granted they dont have the diversity that a VA with 15 different funds has, but for a basic need for someone who is afraid of the market to begin with, it sound pretty good. Your thoughts?
what do you like/dislike about fixed index annuities — sometimes called equity index annuities?
19
Feb
Allianz or American Equity for an annuity?
19
Feb
Please, I would like to know from YOUR own experience. I’m transferring a fixed IRA annuity (AIG is the holder at only 3.5% interest) to a Fixed Index Annuity. There is a small penality for withdrawing from AIG. The term is 7 yrs for either company with a signing bonus of 10-12% the first year, then to follow the S & P. I know Allianz is the largest but are they the best?
If I understand deferred money, this means you really don’t have to withdraw anything until you are 70 1/2. At that time Uncle Sam makes you take a minimum distribution based on age and life-expectancy. Do you concur?