axelrod608

Not All Dividend Stocks Are Overvalued

I can see this is about as productive as the "health care debate". So tell me why, all you naysayers, every textbook on family finance has a section on annuities ? Why did Ben Bernanke put the majority of his net worth into annuities ? Is he a financial dummy ?

People who don't know the depth and breadth of the annuity choices out there would be better served educating themselves rather than dismissing an integral part of the investing market.

Or, perhaps the bad rap on annuities is the stockbrokers' way of discouraging business away from themselves.

There are good and bad stocks, good and bad annuities. To say all stocks or all annuities are bad is just wrong.

No mas.

Not All Dividend Stocks Are Overvalued

jarco - as I said, >>"Yes, there are many kinds of annuities, most of which are risky and written by non-reserve companies. Yes, you have to know what you're buying." >>

Your url to the lawyer that's suing Allianz about DEFERRED annuities has nothing to do with what I said.

Anybody that puts 100% of their life savings into ANY investment based solely on the word of a sales rep is an idiot. We all know that.

As for Allianz' ability to make enough money to pay decent returns, check it out. Allianz makes Warren Buffet look like a small business in comparison. Buffet gets sweet deals because of the size of his assets. Allianz gets sweeter deals.

I just don't understand why there is so much attention devoted solely to the stock market when there are MANY other legitimate ways to invest. TRUE diversification involves investing in many sectors, many different vehicles and products. If you have 100% of your money in stocks, and the bonds of the same companies, no matter how many different ones you have, you are NOT diversified.

Finally, there are MANY kinds of annuities. Most are tailored to one type of investor or another. They grow, pay and save in many different ways. NONE of them are perfect for all situations. And an ignorant annuity buyer is no less at risk than an ignorant stock buyer.

Let's be careful out there.

Not All Dividend Stocks Are Overvalued

You can get "returns" like this from a CD without the risk of share price dropping.

Unless you're buying them in a tax advantaged account like a Roth IRA, the dividends are taxable. These sub-4% returns are less than inflation and taxes. Plus they have risk.

Last week I put a small chunk into a fixed Allianz annuity with a 10% bonus, guaranteed 7.5% annual interest PLUS it has an opportunity for market gains, should there be any. The interest accumulates tax free. It is GUARANTEED to at least double in less than 10 years. And it is written by a RESERVE insurance company. Not one person has ever lost a penny with a reserve product. No risk. It is semi-liquid, you lose the bonus and pay a penalty to close it. If I die, it goes tax free to my kids.

I don't have enough money to buy risky low-return dividends that don't keep up with inflation and taxes. So I don;t "get" these piddling dividend stocks.

Yes, there are many kinds of annuities, most of which are risky and written by non-reserve companies. Yes, you have to know what you're buying. But in this market and what I see on the horizon, I see no future for sub-4% dividends to keep up with inflation and taxes.

I have no interest in Allianz.