Comments on: Life Insurance and Annuities may be Right for Retirement Despite Money Magazine

By: Keith dennis

Keith dennis — Sat, 05 Mar 2011 10:25:14 +0000

Well said. I have been using annuities for years with my clients with no problems at all. I am surprised she didn’t mention state guarantee funds as well that insure against insurance companies going out of business in the first place. My state is $300,000 for annuities just in case the insurance company doesn’t make it. Of course that is assuming that the state hasn’t used the funds for something else – like the social security fiasco.

By the way did you know that with all of SuzeOrmans hate against annuities she actually gave them a good write up in her book – The Road To Wealth? Crazy! I couldn’t believe it! A friend pointed it out as I wouldn’t be caught dead reading it personally. I did read that though and bought one just to show my clients when they say..but annuities are bad and that Suze Orman says.. you know how it goes.

Thanks for the post!

By: Rob Scott

Rob Scott — Sat, 25 Sep 2010 08:00:08 +0000

I agree with your analysis; esp the strategy of using cash value life insurance as part of a retirement plan, providing a more certain level of income.

Money and kiplinger’s are beholden to the mutual fund industry. Just look at the majority of the ads on their pages (fidelity, Franklin, et al). Their articles consistently favor the “philosophy” of the mutual fund industry which is to invest in Funds.

By: My Journey

My Journey — Thu, 19 Feb 2009 16:01:28 +0000

TML,

Another thing you can do with the Cash Value (depending on circumstances) is borrow against it. This way you let the dividends pay back the loan to a certain extent and you enjoy even more of the the money tax free! This MAY cause the policy to collapose so you have to be really careful.

By: Mr. ToughMoneyLove

Mr. ToughMoneyLove — Thu, 19 Feb 2009 15:18:56 +0000

Great analysis here. As you say, there are exceptions to most every rule of personal finance. I actually have some cash value life insurance that I have had for years and intend to use in retirement when I need some tax free income (e.g. return of premium). I’m not a fan of equity indexed products but a fixed annuity is on my agenda to consider. Keep this good stuff coming.

And thanks for the mention.