[quote=BankFC]Fixed Annuities are not a bad way to go.  The Hartford CRC Select is paying 5.15% on 5 years (I believe).  Too bad it is a measly 2% GDC...[/quote]

rate changed this tuesday, it's now 4.95%

i

[quote=anonymous]

Did you know that absolutely NO DOLLAR is EVER taxed at the TP's highest marginal rate?

You are correct as long as we look at it as one pot of money.  So what?   This still doesn't change the fact that tax deferral is not always a good thing.  

[/quote]

It may not be one "pot" of money, but it's one TP filing one Form 1040, which makes me correct every time.

Tax deferral will lose if you use a short time frame AND don't pay ANY taxes in the interim, but you can't assume that the tax burden of mutual funds, for example, are all long term. Most of them are short term and paid every year.

I'm sure you already knew that and didn't want us to know how smart you are.

[quote=BankFC]Fixed Annuities are not a bad way to go.  The Hartford CRC Select is paying 5.15% on 5 years (I believe).  Too bad it is a measly 2% GDC...[/quote]

2%?  I get 4% on that puppy.  New rates came out and it's 4.95 on 5 yrs

Arrrrrrrrgh

Sorry didn't read your post Vin

Bobby, my point is simply that tax deferral isn't always a good thing.  I won't argue that it is often a good thing. 

For instance, I certainly don't want a non-dividend paying stock in a tax-deferred account.  We also have to consider what happens if the money is needed before age 59 1/2  for an IRA or NQ annuity or a non-qualified expenses if we are talking about a 529 plan.  How an asset is treated at death also needs to be considered.  

[quote=BankFC]Fixed Annuities are not a bad way to go.  The
Hartford CRC Select is paying 5.15% on 5 years (I believe).  Too
bad it is a measly 2% GDC…[/quote]



And you could get 5.13% with full liquidity using <span =“a-”>Vanguard Prime Money Market Fund

<span =“symbol”>(VMMXX).



Decisions Decisions Decisions.



Fixed Annuities are damn near the most useless investment out there. Lower rates than CD’s with more Credit Risk. If
somone is a candidate for an FA, its up to you to step up to the bat
and explain that AAA GO muni’s have less risk, more return and better
liquidity.



Fixed annuities remind me of the Comcast Turtles “http://www.theslowskys.com/” who complained that Comcast internet service was too fast and convenient.

 

Thanks all!

Lots of times what clients say they want and what they really want and NEED are different.  Its our job to explain the investments, educate them and steer them to the right products.  Don't just roll over and give the guy CDs without a fight anyway

Double thanks for that Dust Bunny.  I think MUNIS are right.  I can't use the FA at these rates.  I think i agree with ALLREIT about the usefulness of an FA.

[quote=BankFC]Fixed Annuities are not a bad way to go.  The Hartford CRC Select is paying 5.15% on 5 years (I believe).  Too bad it is a measly 2% GDC...[/quote]

Only 2%? Does it go to the grid, first? THat sucks! You need to come over to the dark side.