It depends what type of annunity AIG annunity, or annunity thru a mutual fund that was purchased thru AIG. If they would go under, he would be a general creditor if not part of an mutual fund. If you had money in a mutual fund, it would be protected, but annunities not part of a fund are not.
-
Welcome to the TSP Talk Forums forums.
You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our free community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content, join our AutoTracker, and access many other special features. Registration is simple and absolutely free so please, join our community today!
If you have any problems with the registration process or your account login, please contact us. -
The Forum works well on MOBILE devices without an app: Just go to: https://forum.tsptalk.com
-
Please read our AutoTracker policy on the IFT deadline and remaining active. Thanks!
-
$ - Premium Service Content (Info) | AutoTracker Monthly Winners | Is Gmail et al, Blocking Our emails?
Find us on: Facebook & X | Posting Copyrighted Material
-
Join the TSP Talk AutoTracker: How to Get Started | Login | Main AutoTracker Page
The Great Annuity Rip-Off
- Thread starter GarySpicuzza
- Start date
divgolfish
New member
Hi
My Father has an anuuity with AIG . Under the circumstances , do you have any advice for him. How safe is his money under an annuity? 200K annuity.
My Father has an anuuity with AIG . Under the circumstances , do you have any advice for him. How safe is his money under an annuity? 200K annuity.
SkyPilot
Well-known member
GarySpicuzza
Visitor
Silverbird click www.tsp.gov/features/chapter14.html for information regarding your TSP annuity option.
I can assure you that MetLife is nobody's competition when it comes to private sector annuities. And while $120 billion in assets sounds very impressive it is chump change when compared with the big boyz, (Aviva and Allianz)...who are the worldwide GIANTS in the industry.
Someone will come along and correct me if I'm wrong but the TSP annuity option appears to me that you must annuitized your account.
99% of all annuities are never annuitized.
Nobody would recommend you do that unless there was a compelling reason. Once you "annuitize" an annuity that is an irrevocable option whereby you are systematically liquidating the cash for an income stream and once selected it can never be reversed.
That's not necessarily a bad thing if one is wanting to slow down Medicaid spend down for nursing home qualifications or to provide guaranteed lifetime income for a spouse or disabled child.
But as the linky states:
Edit: You have to copy and paste link above to your broswer's address bar.
For some reason it doesn't take you to the exact page.
I can assure you that MetLife is nobody's competition when it comes to private sector annuities. And while $120 billion in assets sounds very impressive it is chump change when compared with the big boyz, (Aviva and Allianz)...who are the worldwide GIANTS in the industry.
Someone will come along and correct me if I'm wrong but the TSP annuity option appears to me that you must annuitized your account.
99% of all annuities are never annuitized.
Nobody would recommend you do that unless there was a compelling reason. Once you "annuitize" an annuity that is an irrevocable option whereby you are systematically liquidating the cash for an income stream and once selected it can never be reversed.
That's not necessarily a bad thing if one is wanting to slow down Medicaid spend down for nursing home qualifications or to provide guaranteed lifetime income for a spouse or disabled child.
But as the linky states:
Edit: You have to copy and paste link above to your broswer's address bar.
For some reason it doesn't take you to the exact page.
Last edited:
Silverbird
Well-known member
You must be warning about non-TSP Annuities. There's no such thing as a variable TSP annuity. Our annuity program is very very good. Since this thread is on TSP Annuities, please offer a comparison with what we can get from TSP. Otherwise, I see no reason to go shopping for another Annuity, if I really want an annuity.
GarySpicuzza
Visitor
Okay, where was I?
Oh yeah, I remember......on post #73 of this thread I wrote:
At the risk of losing my *SAFE designation please point out anything I've written on this thread that is factually incorrect regarding annuity contracts.
Best regards,
GarySpicuzza
Visitor
SkyPilot wrote:
SkyPilot could you explain to the General Public why Ben Bernake the chairman of the Federal Reserve has the bulk of his cash asset split between two (2) annuities?
One of those annuities is a Traditional FIXED Annuity and the other is a Variable Annuity. Both are valued between $500,000 and $1,000,000. For the mathematically challenged this means he has a minimum of $1,000,000 and a maximum of $2,000,000 of his cash asset invested in annuities.
Click HERE to review Ben Bernanke 2007 Public Financial Disclosure Form.
ChemEng:
You are obviously still hung up on your inflation argument regarding a 3% GUARANTEED rate of growth on a Traditional Fixed Annuity but don't seem to have anything bad to say about the client who got the 7% interest premium bonus up front followed by a 16.54% gain on all funds at the end of his first year for a total gain of 24.71% without subjecting one penny of his money to market risk.
Would someone PLEASE copy and paste something I've written on this thread regarding:
1) a Traditional FIXED annuity;
2) a Fixed Indexed Annuity;
3) a Variable Annuity; or
4) an Immediate Annuity,
that is FACTUALLY INCORRECT?
SkyPilot could you explain to the General Public why Ben Bernake the chairman of the Federal Reserve has the bulk of his cash asset split between two (2) annuities?
One of those annuities is a Traditional FIXED Annuity and the other is a Variable Annuity. Both are valued between $500,000 and $1,000,000. For the mathematically challenged this means he has a minimum of $1,000,000 and a maximum of $2,000,000 of his cash asset invested in annuities.
Click HERE to review Ben Bernanke 2007 Public Financial Disclosure Form.
ChemEng:
You are obviously still hung up on your inflation argument regarding a 3% GUARANTEED rate of growth on a Traditional Fixed Annuity but don't seem to have anything bad to say about the client who got the 7% interest premium bonus up front followed by a 16.54% gain on all funds at the end of his first year for a total gain of 24.71% without subjecting one penny of his money to market risk.
Would someone PLEASE copy and paste something I've written on this thread regarding:
1) a Traditional FIXED annuity;
2) a Fixed Indexed Annuity;
3) a Variable Annuity; or
4) an Immediate Annuity,
that is FACTUALLY INCORRECT?
luv2read
Active member
Is he related to any of FRTIB members? Seems like he uses the same logic...Actually, both challenged and refuted many times (read the thread here, or Google GarySpicuzza for more forum fun).
I know, now he will challenge and ask for specifics, give another equation and then declare how great annuities are.... and declare again no one has disputed any of his FACTS
Bet he wishes he could have a TSP account... but then he wouldn't need to seek out the uniformed to try to sucker into his annuity scheme...
SkyPilot
Well-known member
Actually, both challenged and refuted many times (read the thread here, or Google GarySpicuzza for more forum fun).
I know, now he will challenge and ask for specifics, give another equation and then declare how great annuities are.... and declare again no one has disputed any of his FACTS
Bet he wishes he could have a TSP account... but then he wouldn't need to seek out the uniformed to try to sucker into his annuity scheme...
In case anyone is still reading this thread, Gary is using the classic strawman argument technique. This style of debate carries very little worth because the initial position is never addressed (although Im sure its a great rhetorical device to help sell contracts). It tends to follow the following form:
1. Person A has position X. (3% fixed annuity isnt safe investment in 4% inflation.)
2. Person B ignores X and instead presents position Y. (How well does a 25% loss of principal keep up with inflation?)
3. Person B attacks position Y. (If YOU were the investor in S&P 500 indexed fund who lost 25.31% of his money and now only has $74,690 left would you like to trade places with the person who was in the Fixed Indexed Annuity who still has her $100,000 SAFE and sound?)
4. Person B draws a conclusion that X is false/incorrect/flawed. (your inflation argument pointed toward a traditional FIXED annuity which is a SAFE money savings instrument is absurd)
1. Person A has position X. (3% fixed annuity isnt safe investment in 4% inflation.)
2. Person B ignores X and instead presents position Y. (How well does a 25% loss of principal keep up with inflation?)
3. Person B attacks position Y. (If YOU were the investor in S&P 500 indexed fund who lost 25.31% of his money and now only has $74,690 left would you like to trade places with the person who was in the Fixed Indexed Annuity who still has her $100,000 SAFE and sound?)
4. Person B draws a conclusion that X is false/incorrect/flawed. (your inflation argument pointed toward a traditional FIXED annuity which is a SAFE money savings instrument is absurd)
GarySpicuzza
Visitor
luv2read you are too funny!
Here's a picture that caught my attention a while back while doing research for a client with a TSP account.
The "Annuity" sub-forum was DOA.
So I thought I'd give it a little CPR
with my *SAFE designation.
Rhetorical question for all...
Has anybody besides me noticed how NOBODY has challeged a single annuity contract FACT I've written regarding the different types of annuites?
You know how this goes on the net?
Some anonymouse person writes 2 + 2 = 7.
Then some "other" anonymouse person throws their 2 cents in with:
Well with THAT the next thing you know you've got an Internet Thread War going on between two or more anonymouse persons.
Best regards.
*SAFE = Self Appointed Financial Expert
Please click on the Gary Spicuzza linky below and enjoy.
I wish I would have written those words, they paint a vivid picture.
Here's a picture that caught my attention a while back while doing research for a client with a TSP account.
The "Annuity" sub-forum was DOA.
So I thought I'd give it a little CPR
Rhetorical question for all...
Has anybody besides me noticed how NOBODY has challeged a single annuity contract FACT I've written regarding the different types of annuites?
You know how this goes on the net?
Some anonymouse person writes 2 + 2 = 7.
Then some "other" anonymouse person throws their 2 cents in with:
No, anonymouse, 2 + 2 = 4
Well with THAT the next thing you know you've got an Internet Thread War going on between two or more anonymouse persons.
Best regards.
*SAFE = Self Appointed Financial Expert
Please click on the Gary Spicuzza linky below and enjoy.
I wish I would have written those words, they paint a vivid picture.
luv2read
Active member
Am I allowed to say sex sells?You got my attention with the pictures, then you lost me with the
words. I'm done, Good Luck In Your Endevors Gary, what ever they be.
Norman, its not too often that I disagree with you, but I do (just a little)
non the less. I make a living by working for the Federal Government. My
goal in coming here is two fold. I try to improve my retirement outlook
while trying to help others. In fact, that's what makes this website so
unique. It's membership unselfishly tries to do both without asking for
anything from anybody. Even those members who eventually went on
to offer services for a fee (ie...Ebb...etc) gave freely of themselves
and there systems without asking for a thing. I do understand that this
jewel of ours is open to the public and everyone has a right to write
what they want. However, if the intent is to sell a product, create
controversy for exposure, all in the name of making a living, I believe
there are better suited websites out there to meet his need to produce
income. Of coarse, if Tom wants to charge Gary a 10% user fee for
operating a business within this domain, I certainly wouldn't blame him.
Still, he has a right to be here, to write what he wishes and respond as
he sees fit. Ultimately it's up to me, you and the other TSPtalk members
to decide if they wish to participate in this thread. Should that be their
decision, then by all means, do so with respect. (Originator Included).
:suspicious:
Last edited:
GarySpicuzza
Visitor
ChemEng, squalebear and SkyPilot:
...Foxxx News Alert...
On the TSP Talk Forums there is a forum catagory titled "Retirement Planning" and under that heading there is a sub-forum titled Annuities.
Have I posted in the wrong section?
Did you know?....
ONLY a Licensed Insurance Agent can sell an annuity upon whatever form.
The best source of information on annuities would be from someone who actually knows what they are talking about regarding specific contract provisions and more importantly it is imperative the General Public understand that a [Traditional FIXED Annuity] IS NOT THE SAME AS A [Fixed Indexed Annuity] WHICH IS NOT THE SAME AS A [Variable Annuity] AND NONE OF THE ABOVE ARE [Immediate Annuites].
...End of Foxxx News Alert...
Okay, where was I?
Yes, I remember, moving on to VARIABLE Annuites.
Now before I go off on an Internet rant on THE infamous BLOATED PIG WITH LIP STICK, known as a Variable Annuity let me say I've seen Variable Annuities that are actively managed by sharp brokers that have performed EXTREMELY well.
A Variable Annuity is an INVESTMENT in mutual funds, bonds and other stock market products then wrapped in an annuity contract. The cash value is subject to the direct upside potential of the market AND ALL the direct downside of the market.
THEY are NOT a SAFE money savings instrument like a bank CD or a U.S. Savings Bond or a Money Market account or a Traditional FIXED Annuity or a Fixed Indexed Annuity.
Variable Annuities violate the fundamental aspect of "Safety of Principal" that is inherent is ALL annuites EXCEPT VARIABLE Annuites.
Remember my statement above?
Variable Annuities are sold by the securities industry Registered Representatives who HAD to obtain a Life and Annuity Insurance License to be able to sell THE infamous BLOATED PIG WITH LIP STICK, known as a Variable Annuity.
Guess who SELLS the most annuities nationwide?
Well.... it's the day traders playing stocks like a flea market swap meet with your money.
See 2007 annuity sales graphic below:
...Foxxx News Alert...
On the TSP Talk Forums there is a forum catagory titled "Retirement Planning" and under that heading there is a sub-forum titled Annuities.
Have I posted in the wrong section?
Did you know?....
ONLY a Licensed Insurance Agent can sell an annuity upon whatever form.
The best source of information on annuities would be from someone who actually knows what they are talking about regarding specific contract provisions and more importantly it is imperative the General Public understand that a [Traditional FIXED Annuity] IS NOT THE SAME AS A [Fixed Indexed Annuity] WHICH IS NOT THE SAME AS A [Variable Annuity] AND NONE OF THE ABOVE ARE [Immediate Annuites].
...End of Foxxx News Alert...
Okay, where was I?
Yes, I remember, moving on to VARIABLE Annuites.
Now before I go off on an Internet rant on THE infamous BLOATED PIG WITH LIP STICK, known as a Variable Annuity let me say I've seen Variable Annuities that are actively managed by sharp brokers that have performed EXTREMELY well.
A Variable Annuity is an INVESTMENT in mutual funds, bonds and other stock market products then wrapped in an annuity contract. The cash value is subject to the direct upside potential of the market AND ALL the direct downside of the market.
THEY are NOT a SAFE money savings instrument like a bank CD or a U.S. Savings Bond or a Money Market account or a Traditional FIXED Annuity or a Fixed Indexed Annuity.
Variable Annuities violate the fundamental aspect of "Safety of Principal" that is inherent is ALL annuites EXCEPT VARIABLE Annuites.
Remember my statement above?
While that statement is absolutely true, Insurance Agents DO NOT sell VARIABLE Annuites.
Variable Annuities are sold by the securities industry Registered Representatives who HAD to obtain a Life and Annuity Insurance License to be able to sell THE infamous BLOATED PIG WITH LIP STICK, known as a Variable Annuity.
Guess who SELLS the most annuities nationwide?
Well.... it's the day traders playing stocks like a flea market swap meet with your money.
See 2007 annuity sales graphic below:
nnuut
Moderator | TSP Legend
People he is a SALESMAN tryin to make a living arn't we all? If you learned anything on this thread, this is exctly why we are here. bring on the next one!!! View attachment 3986
SkyPilot
Well-known member
And yet, we fed his need through our contineuos participation in this
thread. We stand tall and steadfast to correct his errors, in hopes to
achieve, what can be done with a click of our mouse. Some don't just
love feeding the animals. Some love to feed themselves, which in turn,
ultimately ends up feeding the animal anyway. Ok, I'm full ! Have fun !
thread. We stand tall and steadfast to correct his errors, in hopes to
achieve, what can be done with a click of our mouse. Some don't just
love feeding the animals. Some love to feed themselves, which in turn,
ultimately ends up feeding the animal anyway. Ok, I'm full ! Have fun !
