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Sign of the times? Hartford Ins. to halt annuity sales.....LIP

catch22catch22
edited March 2012 in Off-Topic
Morn'in Coffee:

Sign of the times? Is this portion of Hartford not able to profit from annuities; or that the profit may be in place today, but the ability to continue with profits is limited? I don't know the inside scoop. Just a few random questions.
Or this may be nothing more than a money play by Paulson.
This is not a direct relational to investments discussed here; but insurance companies most assuredly contain vast amounts of Joe/Jane American monies; and in particular with annunities.

http://www.bloomberg.com/news/print/2012-03-21/hartford-to-halt-annuity-sales-following-paulson-pressure-1-.html

Take care,
Catch

Comments

  • Old_JoeOld_Joe
    edited March 2012
    Yet another negative perspective on annuities, from the customer viewpoint: you were sold an annuity and told that it was "safe" because "Hartford Stands Behind" it. Who is going to be "standing behind it" now? Joe McGee Insurance Enterprises, ltd.?
  • Ian
    Annuities are not a desirable proposition for insurers. Just like a 30 year fixed mortgage is a poor risk for a bank, a fixed annuity is a poor risk for insurers.
  • ronorono
    Howdy,

    feh. Variable Annuities have their place, but it's very small and specialized and most often only for large random amounts of unexpected income - author, athlete, actor stuff. And Fixed Annuities are great in many more situations.

    The problem is they sell them to the wrong people for the wrong reasons and use them simply to generate revenue for the companies and salesmen at the expense of the customer.

    If you have a situation where an annuity might be appropriate you can get them thru the better no load houses like vanguard, price and fido.

    I have been saying on this and FA for over ten gd years that buying any investment product from an insurance company is like buying your golf clubs at McDonalds.

    And BTW, does anyone disagree with me that the insurance industry is the sleaziest industry on the planet?

    peace,

    rono


  • Old_JoeOld_Joe
    Well, maybe. I nominate the oil companies, myself.
  • [Deleted User]
    The user and all related content has been deleted.
  • ron
    I found a place for a variable annuity in 1995 when I transferred the cash value of an insurance policy to a low cost Vanguard Variable Annuity. Last year, for the first time I added cash to the annuity as I considered it the best place for me, retired, age 78.
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