Full Circle’s Mutterings on Money
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30-03-2017, 07:17 AM (This post was last modified: 30-03-2017 01:12 PM by Full Circle.)
RE: Full Circle’s Mutterings on Money
Just a heads up for any of you out there considering a fixed or variable annuity for retirement.

It all sounds good until you realize how much in fees these products charge your account.

"Aside from surrender charges that dock you for early withdrawals, variables can also come with steep sales commissions (often 4%). Add ongoing management fees and insurance charges, which combined can run as high as 2% to 3% a year, and you’re looking at one hefty load of fees cutting into your returns.

Compare that fee structure with regular no-load mutual funds, which levy no sales commission or surrender charge and impose average annual expenses of less than 0.50% (for index funds) or about 1.5% (actively managed funds).”

[Image: Account%20Growth%20Impacted%20by%20Retir...chart_.png]

As you can see steep fees can reduce your account by upwards of 40%!

Recently companies that sell these products have seen large reductions in assets under management primarily to the newly passed FIDUCIARY RULE which says financial advisors have to put your interests FIRST! Imagine that! Once the law was passed they have avoided pushing these products for fear of being sued. This should give you some inkling as to how bad they are.

*modified for clarification

“I am quite sure now that often, very often, in matters concerning religion and politics a man’s reasoning powers are not above the monkey’s.”~Mark Twain
“Ocean: A body of water occupying about two-thirds of a world made for man - who has no gills.”~ Ambrose Bierce
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27-04-2017, 05:59 PM
RE: Full Circle’s Mutterings on Money
Two questions for anybody who knows about these sorts of things... my mind glazes over whenever anybody talks finances and very little of it usually sinks in.

Are there any significant benefits or risks to putting money in a credit union vs a bank?

If you were looking for as near zero risk as you can get what are the options besides just a bank account or a CD?

Atheism: it's not just for communists any more!
America July 4 1776 - November 8 2016 RIP
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27-04-2017, 06:10 PM
RE: Full Circle’s Mutterings on Money
(27-04-2017 05:59 PM)unfogged Wrote:  Two questions for anybody who knows about these sorts of things... my mind glazes over whenever anybody talks finances and very little of it usually sinks in.

Are there any significant benefits or risks to putting money in a credit union vs a bank?

If you were looking for as near zero risk as you can get what are the options besides just a bank account or a CD?

You can get much better rates if need a loan, from a credit union, and you can use your shares as collateral. Basically they are non-profits. Banks are born to make money for the bankers.

Insufferable know-it-all.Einstein God has a plan for us. Please stop screwing it up with your prayers.
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