Ep. 2004: The Annuity Rules Keep Changing

About this episode

Indexed annuities promise market-like gains without market losses—but Don and Tom explain how commissions, surrender charges, spreads, participation rates, and even changing contract terms can leave investors with disappointing returns and very little transparency. They also discuss how much cash belongs in a retirement “reservoir,” why falling bond prices do not make high-quality bonds riskier than stocks, and how MYGA tax deferral works through a 1035 exchange. 01:31 Musical royalties and an annuity joke 02:26 Why indexed-annuity sales keep soaring 05:52 When the insurer changes the rules 11:32 Investments Don would avoid 14:41 Designing a retirement cash reservoir 22:05 Why bond-fund prices have fallen 26:22 Extending MYGA tax deferral 29:34 Free portfolio analysis 31:51 Disclosures Questions? Comments? Click!