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Old 05-11-2012, 02:43 PM   #1
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Laughably bad finanical advice

http://finance.yahoo.com/news/not-ea...144201954.html

Gist of the articles advice: since one million dollars may not be enough to retire on, due to inflation, buy an annity.



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Old 05-11-2012, 02:56 PM   #2
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For those that are unfamiliar with annuities, here is a quick summary:

1) You pay for the annuity in one lump sum up front

2) You get paid a certain amount of money each month until you die (the amount per month never changes in a basic annuity)

3) Nothing of the initial investment is left over after you die (so if you die 2 months after you buy it, they keep the whole amount)

4) Things that hurt the value of an annuity after you purchase it are inflation and rising interest rates (think of an annuity as a really long term bond)

In summary, you would only buy an annuity in the current financial climate if you thought the follow were true:
a) Inflation is currently, and will be for a long time in the future, very low
b) Interest rates will not rise any time in your lifetime
c) You think you will live much longer than the average person your age/race/gender
d) Which ever currency you recieve your payments in has no chance of going away
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Old 05-11-2012, 05:47 PM   #3
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It is PERFECT advice from the viewpoint of the provider of annuities. Nothing like "legally" being the perfect thief.
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Old 05-11-2012, 05:50 PM   #4
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Originally Posted by benjamen View Post:
1) You pay for the annuity in one lump sum up front
I had an annuity that I could deposit money in whenever I wanted. But I cashed it out (at a penalty) and bought PMs with it. Unfortunately, I lost all of it in a tragic boating accident.
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Old 05-11-2012, 07:08 PM   #5
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Hahahahah!

I am constantly amazed at how stupid silver owners always take their metal out in their boats, sink the boat and lose their silver.

Perhaps we shoukd all take the Coast Guard "Power Squadron" training? ; - )
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Old 05-11-2012, 08:00 PM   #6
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Originally Posted by mike View Post:
I had an annuity that I could deposit money in whenever I wanted. But I cashed it out (at a penalty) and bought PMs with it. Unfortunately, I lost all of it in a tragic boating accident.
I was describing the basic annuity. There are literally hundreds of variations.

A few common types are described here:
http://money.cnn.com/retirement/guid...mag/index2.htm
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Old 05-11-2012, 08:17 PM   #7
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I read that stupid article twice because they correctly predict that inflation eats up savings (good so far...) but then they advise buying an annuity which is... vulnerable to inflation? Huh? So I had to read it again to see if I missed something. So what is the author's logic?

Thanks for wasting my time Ben! :P
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Old 05-11-2012, 08:34 PM   #8
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Sooooo......SBV......I have to ask.....do you have a Shelby???
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Old 05-12-2012, 02:49 AM   #9
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No ancona. My screen name has to do with Shelbyville Manhattan. From there you can figure it out.
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Old 05-12-2012, 07:58 AM   #10
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Got it...... ; - )
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Old 06-20-2012, 10:53 AM   #11
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Today's laughably bad financial advice:
http://finance.yahoo.com/news/consid...3Rpb25z;_ylv=3

Essentially, it is promoting adjustable rate mortgages. Never mind the fact that ARMs are bad when interest rates rise and good when rates fall; also ignore the fact that interest rates are already so low, they can not really fall any further.

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Old 06-21-2012, 06:32 AM   #12
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...that's crazy. Anybody surprised that Yahoo is constantly in troubles, maybe they are eating their own dog food, that would explain

Suggesting ARM in the current climate - it is suicidal, Jaysus... I will probably take a mortgage soon enough, but one thing for sure, it will be FIXED as hell! And let the money printing continue ! (not to mention, if everything comes as planned, I should have quite sizeable pile of shiny, to accompany me on my travel back to Ireland on a ferry.. Wait a second, did I just said, a ferry travel + shiny stuff in all my loose pockets??
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Old 08-09-2012, 08:36 AM   #13
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Todays comic news story about when a government hands out financial advice:
http://www.mineweb.com/mineweb/view/...tail&pid=92730

"Worried that the flow of savings is moving towards investment in gold, India's Finance Minister P Chidambaram has said there is a need to spread financial literacy to encourage people to invest in market instruments and not bullion."

"The time is ripe to motivate our educated upper middle-class to climb from savings mode to wealth generation mode.''

"The government has said it would prefer savings to be invested in ``more productive assets'' that would help boost the growth rate."

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Old 08-26-2012, 12:52 PM   #14
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Wink I lost mine too!!

I can not believe someone else had the same boating accident I did...lost everything.
This is precisely why you should leave all financial instruments in a bank like JP Morgan Chase...
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Old 08-26-2012, 01:14 PM   #15
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hey 69800

we like our small boats here at PMB ...
weird how pm lovers are often small boat lovers with a big sense of adventure (-;

welcome aboard


ps.
ooeerrr post number 663
any suggestions for getting through the big one ?
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Old 08-27-2012, 10:03 AM   #16
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Originally Posted by bushi View Post:
...that's crazy. Anybody surprised that Yahoo is constantly in troubles, maybe they are eating their own dog food, that would explain

Suggesting ARM in the current climate - it is suicidal, Jaysus... I will probably take a mortgage soon enough, but one thing for sure, it will be FIXED as hell! And let the money printing continue ! (not to mention, if everything comes as planned, I should have quite sizeable pile of shiny, to accompany me on my travel back to Ireland on a ferry.. Wait a second, did I just said, a ferry travel + shiny stuff in all my loose pockets??
we tried to refi our Wells Fargo with one home equity loan, they offered a higher interest rate than we are now paying (8.9%). It s a new law in Texas, apparently
. But no worry, they offered to refi at 3.% adjustible.
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Old 10-17-2012, 01:07 PM   #17
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http://finance.yahoo.com/news/gold-3...3Rpb25z;_ylv=3


1) Apparently gold is at its peak and it is about to drop, SELL NOW!

2) Expect to get less than spot for your physical gold

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Old 10-17-2012, 01:26 PM   #18
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I wouldn't sell any of my stack, but on the other hand, 80% or so of the paper went a lot nearer the last peak price, after which it's been dropping pretty hard. I'll wait till it crosses the 50 going up again to repurchase paper gold. Right now, it's kind of playing with the line, like it can't decide.

Any motion is money, you just have to be on the right side. What idiot would trade Phyzz with that vig loss? That would be like Scottrade charging a $100 commission for a 100 lot stock trade - you can't win on that. That's not what it's for.
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Old 10-17-2012, 01:54 PM   #19
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Snidely Laughable Offer...

Originally Posted by benjamen View Post:
http://finance.yahoo.com/news/gold-3...3Rpb25z;_ylv=3


1) Apparently gold is at its peak and it is about to drop, SELL NOW!

2) Expect to get less than spot for your physical gold

RE:#2-As a public service I'll throw myself on the sword(just like hitlery)& be happy to buy anyones Au under spot.
I'll even go further & offer the same for Ag.
Again,This was a public service announcement.



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Last edited by BigJim; 10-17-2012 at 02:48 PM.
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Old 10-17-2012, 03:56 PM   #20
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Originally Posted by 69800 View Post:
I can not believe someone else had the same boating accident I did...lost everything.
This is precisely why you should leave all financial instruments in a bank like JP Morgan Chase...
The really, really scarey part is that apparently folks who are prone to buying PMs repeat the same mistake over and over and over and over (the ones who can swim, anyway).
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