Saturday, April 15, 2006

Annuity Reviews

Due to many requests, I am going to begin doing annuity reviews. I will post information about specific annuities and break them down and give you some insight as to how they work. I would like to also give the benefits and pitfalls of each annuity as I do this.

Because the environment is always changing, make sure you check for updates on these annuities. However, there are particular annuities tat seem to be the most popular so I will start with those first.

These will include annuities such as:

Allianz Annuities
Old Mutual Annuities (F&G)
BMA Annuities (RBC Annnuities)
Jefferson Pilot Annuities
American National Annuities
Midland Annuities

And many more.

I will most likely be reviewing mostly equity index and index annuities and probably leave alone variable annuities. This is due to the fact that I am a fan of variables only in very specific circumstances and would rather spend the time reviewing these other annuities.

I will also be one of the moderators in an investment forum and I will keep you posted on that as more details come along.

Remember, Ignorance is NOT BLISS


Tony Bahu

Monday, April 10, 2006

Best Annuity Rate

Often times, people are looking for the best rate on a fixed annuity. However, best rate doesn't mean it's the best annuity. Let me explain. In order to give you a bettter rate, an insurance compnay must 'have a reason' for giving a better rate than any other company. In other words, there is often a tradeoff.

Mostly, this tradeoff may come in the form of less liquidity, more time before surrender charges go away, less features, etc.

The point is, nothing is for free. There are always tradeoffs when it comes to investments. If an insurance company is giving you something, they are often taking something away. My favorite example of this is the bonus annuity. Many people compare annuities by their bonuses. However, what you must understand is that bonuses cost something in the long run. Often, the bigger the bonus, the longer the timeframe of the annuity.

Another place a bonus make up for itself is by not giving as good of a rate in subsequent years.

The bottom line is, nothings free in life or in the annuity world. If you are getting something just know you're giving something up. So really, it's not a problem if you understand this. Just remember, best rate does not necessarily mean the best annuity...

Tony Bahu

Friday, March 31, 2006

Do You Really Want an Annuity?

So, you are thinking about an annuity but do you really want an annuity? Well, let me start out by saying that annuities aren't for everyone. I get the craziest phone calls where people say, 'Well Tony, I need access to my money and want liquidity. Should I buy an annuity?' The answer is obvious.

Annuities have their drawbacks and you have to think about those when you are considering your investment choices. Yes, you had better make sure that these drawbacks are not what you DON'T want.

Now, on the contrary, if you can live without a whole bunch of liquidity, annuities can offer some pretty interesting options. But remember, insurance companies reward you for time on your money and for the ability to use your money and not to have to give it back. So if you are willing to give up time and ontrol on your money, they may be able to reward you for this.

My point is, annuities aren't for everyone. You have to make sure you can accept what they can't offer you. If you can, then you will be in good shape.

Ignorance Is NOT BLISS!

Tony B.

Friday, January 06, 2006

Equity Index Annuities and Bonus Annuities

There are many times when we talk about being careful of the bonus annuity. Many people just can't understand that you don't get something for nothing. Am I completely against a bonus annuity---not necessarily. But the problem is, when people purchase annuities, they don't quite know what they are getting into. And they often think that the bonus annuity is just something the insurance company is doing as an incentive to get them involved in the annuity. Yes, sure it is, but there is a price. (The Proof is Below)

Well, often times the agents don't inform their clients neither. Below is a disclaimer on the bottom of an advertisement sent to agents from an insurance company. Yes, the bonus does cost something. And you had better be aware of that when you purchase one. If your agent isn't telling you this, you need to fire him. Remember, knowledge is power.


Bonus annuities like those described above may include annuitization requirements, longer vesting / surrender periods, lower caps, or other restrictions that are not included in similar annuities that don't offer a premium bonus feature.


Don't say we never told you. For more on 'Shocking Secrets About Your Annuity', please visit