Thoughts on AIG Power Select Builder 8

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rutrow2015
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Thoughts on AIG Power Select Builder 8

Post by rutrow2015 »

I have a friend that is suggesting this as a good place to park money for the next 8 years and I haven't started researching it yet.

My thinking is that Bogleheads is the best place to start. I'm not sure if this is an immediate annuity or not but I'm hoping somewhere here has already done some looking and can give me an impression.

TIA.
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anon_investor
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Re: Thoughts on AIG Power Select Builder 8

Post by anon_investor »

rutrow2015 wrote: Thu Jul 08, 2021 9:44 am I have a friend that is suggesting this as a good place to park money for the next 8 years and I haven't started researching it yet.

My thinking is that Bogleheads is the best place to start. I'm not sure if this is an immediate annuity or not but I'm hoping somewhere here has already done some looking and can give me an impression.

TIA.
This product appears to be a deferred fixed indexed annuity. I personally would STAY AWAY, and just do a 2-3 index fund portfolio.
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Stinky
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Re: Thoughts on AIG Power Select Builder 8

Post by Stinky »

rutrow2015 wrote: Thu Jul 08, 2021 9:44 am I have a friend that is suggesting this as a good place to park money for the next 8 years and I haven't started researching it yet.

My thinking is that Bogleheads is the best place to start. I'm not sure if this is an immediate annuity or not but I'm hoping somewhere here has already done some looking and can give me an impression.

TIA.
Here’s a “fact sheet” on the product from an agency. Yes, it is an indexed annuity, with a 10 year surrender charge period.

https://www.annuityadvantage.com/fixed- ... t-builder/

There have been multiple threads about indexed annuities on this Forum in the past, and they reach a unanimous conclusion - don’t buy indexed annuities. This product is no different.
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
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Stinky
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Re: Thoughts on AIG Power Select Builder 8

Post by Stinky »

By the way, if your “friend” that is suggesting this product is trying to sell you one, there is likely an ulterior motive.

I’m guessing that an agent would make a commission of roughly 6-8% of your premium if you buy the product.
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Re: Thoughts on AIG Power Select Builder 8

Post by pkcrafter »

I have a friend that is suggesting this as a good place to park money for the next 8 years
Noooooooo.

Yes to the above Boglehead recommendations, and here is a wiki article on that subject...

https://www.bogleheads.org/wiki/Equity-indexed_annuity


Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
Rex66
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Re: Thoughts on AIG Power Select Builder 8

Post by Rex66 »

Horrible idea

Likely not a real friend
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rutrow2015
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Re: Thoughts on AIG Power Select Builder 8

Post by rutrow2015 »

Thank you all for feedback and links. My main issue is the 30 year term and only guaranteeing 87.5% of premium after the 8 year period where surrender charges drop to 0. I think I will avoid. Any vehicle that goes to this much trouble to obfuscate the real math can't be good.
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Re: Thoughts on AIG Power Select Builder 8

Post by pkcrafter »

rutrow2015 wrote: Thu Jul 08, 2021 1:14 pm Thank you all for feedback and links. My main issue is the 30 year term and only guaranteeing 87.5% of premium after the 8 year period where surrender charges drop to 0. I think I will avoid. Any vehicle that goes to this much trouble to obfuscate the real math can't be good.
:thumbsup

Yep, you are a Boglehead!



Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
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Stinky
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Re: Thoughts on AIG Power Select Builder 8

Post by Stinky »

rutrow2015 wrote: Thu Jul 08, 2021 1:14 pm Thank you all for feedback and links. My main issue is the 30 year term and only guaranteeing 87.5% of premium after the 8 year period where surrender charges drop to 0. I think I will avoid. Any vehicle that goes to this much trouble to obfuscate the real math can't be good.
Trust me - you're making a good decision to avoid this product.

Please post back if you are pitched other products by this "friend". Hopefully those products will be a better consumer value than this one.
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
Robert20
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Re: Thoughts on AIG Power Select Builder 8

Post by Robert20 »

rutrow2015 wrote: Thu Jul 08, 2021 9:44 am I have a friend that is suggesting this as a good place to park money for the next 8 years and I haven't started researching it yet.

My thinking is that Bogleheads is the best place to start. I'm not sure if this is an immediate annuity or not but I'm hoping somewhere here has already done some looking and can give me an impression.

TIA.
Run!! Dont even look back.. Annuities are horrible (except if u really need it depending on your financial situation - very rare).
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Stinky
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Re: Thoughts on AIG Power Select Builder 8

Post by Stinky »

Robert20 wrote: Fri Jul 30, 2021 7:25 am Annuities are horrible (except if u really need it depending on your financial situation - very rare).
I agree that this particular annuity is terrible.

Many Bogleheads find value in single premium immediate annuities (SPIAs) and multi year guaranteed annuities (MYGAs). In my view, those can be “good” annuities.
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
RetiredAL
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Re: Thoughts on AIG Power Select Builder 8

Post by RetiredAL »

rutrow2015 wrote: Thu Jul 08, 2021 1:14 pm Thank you all for feedback and links. My main issue is the 30 year term and only guaranteeing 87.5% of premium after the 8 year period where surrender charges drop to 0. I think I will avoid. Any vehicle that goes to this much trouble to obfuscate the real math can't be good.
+1
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