Thread: The Great Annuity Rip-Off

Are you serious? Your 3% fixed annuities are about 25% lower than *todays* inflation rate... Right out of the gate your products are loosing value for your customer.

ChemEng our point of contention was whether or not traditional FIXED annuities have any fees and/or expenses other than the surrender charge schedule.

THEY DO NOT.

The insurance company declares the FIXED interest rate for that contract year and that is EXACTLY what is paid.

Remember this thead and this topic is about THIS article written by Kimberly Lankford, *CCC from Kiplinger's.

Ms. Lankford's opening statement for her article was:

Unscrupulous agents take advantage of seniors with risky investments that cost too much.

Since we've learned FIXED annuities aren't risky nor do they have any fees EXCEPT for the surrender charge schedule, her opening statement to be journalistically accurate should read:

Unscrupulous stock brokers take advantage of seniors with risky VARIABLE annuity investments that cost too much.

And just so you know..... Stock Brokers SELL the vast majority of ALL annuities sold nationwide.




Moving on to the "OTHER" type of FIXED annuity known as a FIXED Indexed Annuity.

How is EXCESS interest credited?

A picture is worth a thousand words!








Kimberly Lankford, *CCC = Certified Clueless Clown

Originally Posted by GarySpicuzza

Since we've learned FIXED annuities aren't risky

Wrong. The graphic you posted here exposes your client heavily to inflationary risk. Repeating myself again, your 3% annuity is about 25% less than todays inflation rate. This means your client is loosing value right out of the gate.

Address this issue before your try to move the conversation forward with more non-sequitur comments.

The "FIX" is in... by "The Self ANNOINTED".

The only one convinced by these assertions are the poor saps who buy the annuities. The "insurance" agent already knows the truth.

The more charts you need to make your point, the less likely it is your point is valid.

Use this as a warning for your parents that there is yet another scam out there waiting to steal them blind.

Stick to CD, Bond funds, etc... that provide the same or better returns, are entirely secure and are much more liquid.


More interesting reading...
http://forums.kiplinger.com/printthr...7&page=6&pp=15

James K. Blankenship, CFP,
PLAINTIFF

Vs.

Gary D, Spicuzza,
Defendant.
_______________/

Judgment for the Plaintiff for $500,000 Dollars.

SkyPilot,

Interesting reading? Now that is really, really evil!

Originally Posted by luv2read

SkyPilot,

Interesting reading? Now that is really, really evil!

Yes, yes it is !!!

Why is everybody picking on poor Gary? Fixed annuties provide a valuable service to many people regardless of any inherent fees. The fear that most folks have is running out of money during retirement and the annuity protects that security. The only problem is that the insurance industry uses the actuarial concept as to how long you will live. The risk is for the individual to assume - die early and the company keeps the money for providing you the lifetime annuity - seems only fair to me.

Originally Posted by Birchtree

Why is everybody picking on poor Gary? Fixed annuties provide a valuable service to many people regardless of any inherent fees. The fear that most folks have is running out of money during retirement and the annuity protects that security. The only problem is that the insurance industry uses the actuarial concept as to how long you will live. The risk is for the individual to assume - die early and the company keeps the money for providing you the lifetime annuity - seems only fair to me.

I like reverse mortgages better...

Originally Posted by Birchtree

Why is everybody picking on poor Gary? Fixed annuties provide a valuable service to many people regardless of any inherent fees. The fear that most folks have is running out of money during retirement and the annuity protects that security. The only problem is that the insurance industry uses the actuarial concept as to how long you will live. The risk is for the individual to assume - die early and the company keeps the money for providing you the lifetime annuity - seems only fair to me.

Maybe he can sell one to you?

Don't really think you would bite, or recommend this fellow to your parents either. I am guessing you would put them in well rated bond funds or CD's, or go the reverse mortgage route. A certified or licensed financial planner should be consulted if one's fear is substantial enough to consider this kind of tool.

To buy this kind of "insurance" is to assume a great amount of expense to achieve the goal of security.

Maybe that's why insurance companies sell them

Originally Posted by SkyPilot

The truth is Mr. Spicuzza has been banned or addressed on any number of forums for exactly the nonsense he is participating in here. As it is clear he is not busy selling annuities, he has sufficient time to rant on this site.

He has the tenacity of a pyramid marketer selling mangosteen juice...

For more information just Google "Gary Spicuzza" and all will be made clear.

His avatar says it all....

....

I agree, if Gary is here to sell us any products, we have a problem. Although skeptical at first, I found his original posts somewhat informative and thought it would helpful to others. But I knew if there was any talk of products he is selling, he would be breaking the TOS.

The question is, did he bring it up, or did our members? I'll have to read some old posts to see.