Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Retirement Compounders®
  • Free Email Signup

Grave Concerns about Annuity Survival

July 30, 2018 By E.J. Smith

By Mohd KhairilX @ Shutterstock.com

I have grave concerns about the survival of annuities. I like what Dennis Beaver writes at the Hanford Sentinel:

For anyone thinking of moving a large amount of money from a retirement account into an insurance annuity at this time, it could be a terrible decision.

“You’ve got to think this over very carefully. Do not be conned by a salesman looking only for a huge commission on the sale of an annuity, and, absolutely do not put all your eggs in one basket!” warns New York attorney Edward Stone.

As one of a handful of lawyers in North America who specialize in life insurance/annuity company failures — that’s right, failures with policyholders suffering huge losses — Stone’s advice merits serious attention, especially now.

As he explained:

“Insurance companies are in a near-zero interest rate environment which is a very real threat to their ability of honoring promises to policyholders. How can they continue to guarantee rates of return that exceed actual returns on their investments? Either you rob Peter to pay Paul or chase risk or some combination of both.”

He is not alone with this warning. In April of 2015, Laurence D. Fink, CEO of BlackRock Inc., the world’s largest asset manager, addressed the reality of what low interest rates mean to the survival of life insurance companies:

“Low interest rate policies by central banks around the world threaten insurance companies and pension funds. As we live in a world of persistent low rates and negative rates, we are destroying the value of pension funds [and] the viability of insurance companies.”

The market shouldn’t be at record highs: BlackRock CEO

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • A 2019 Survival Guy Investment Strategy
  • My Concerns with the Vanguard Effect on Your Family’s Survival
  • My Concerns as Money Piles Up at Vanguard
  • Author
  • Recent Posts
E.J. Smith
E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris.

Please get in touch with E.J. at ejsmith@youngresearch.com

Click here to sign up for my free monthly Survive & Thrive letter.
Latest posts by E.J. Smith (see all)
  • Your Survival Guy in Rome 30-Years A.B. (After Babson) - May 26, 2023
  • A Three-Week International Research Trip to Paris via Rome - May 25, 2023
  • What Does That Have to Do with Your Dividend? - May 24, 2023

Search Young Research

Most Popular

  • Letter to the Federal Reserve Chairman from Your Survival Guy
  • What Does That Have to Do with Your Dividend?
  • Is an Investment Property Disaster Looming?
  • “I Came from Nothing,” He Said. “I Mean Nothing.”
  • Private Debt Funds: More Risk than Meets the Eye
  • The Wisdom of Sam Zell
  • How Activists Have Weaponized Corporate Boards
  • Is Japan Rising Once More?
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • When Did You Become Serious about Your Money?

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

The Importance of a Balanced Portfolio

Invest with Peace of Mind and Comfort

What Kind of Life Are You Investing For?

RSS The Latest at Richardcyoung.com

  • Pushing the Envelope Too Far
  • Your Survival Guy in Rome 30-Years A.B. (After Babson)
  • America’s Favorite Wordsmith Needs Tutoring
  • A Three-Week International Research Trip to Paris via Rome
  • BIOTERROR RISK: The Dangers Genetically Modified Insects
  • Why Be Proud?
  • What Does That Have to Do with Your Dividend?
  • Will Biden’s Ukraine Gambit Be America’s Worst Foreign Policy Disaster?
  • Stossel Says DeSantis Is “Smarter and Better than Biden.”
  • What Would They Give Up for “Equity”?

RSS The Latest at Yoursurvivalguy.com

  • Your Survival Guy in Rome 30-Years A.B. (After Babson)
  • Insurers Now Fleeing the Net Zero Insurance Alliance
  • A Three-Week International Research Trip to Paris via Rome
  • Will Biden Repeat Obama with US Debt Downgrade?
  • What Does That Have to Do with Your Dividend?
  • The ESG Cartel
  • Two More States Nearing Passage of Permitless Carry Legislation
  • How Activists Have Weaponized Corporate Boards
  • Letter to the Federal Reserve Chairman from Your Survival Guy
  • Big Blue Blob Cities Get Bad News from Census Report

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2023 | Terms & Conditions

 

Loading Comments...
 

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.