$30,650 in premium paid into a Traditional Fixed Annuity that offers a 10% premium bonus would have produced the following results.
February 12th 2008 $30,650 premium PLUS 10% first year bonus equals a beginning year one Account Value of $33,715.
The GUARANTEED first year interest is 3%.
$33,715 PLUS 3% tax deferred interest equals an End of Year one (1) or on February 12th 2009 the client would have an Account Value of $34,726.
Now let me provide you some eye popping math.
The client who bought the FIXED Annuity on February 12th 2008 has $34,726 on February 12th 2009.
THE, Certified Clueless Clown, FINRA "Registered Representative" who sold the now 80 year old man the Variable Annuity cost his client $11,982 of his life savings in one year and on February 12th 2009 the client has only $18,668 dollars left.
That's a 39.09% LOSS in one year.
But it's actually worse than that.
The client with the Traditional FIXED Annuity will get ANOTHER 3% GUARANTEED interest on his $34,726 in year two (2) bringing his End of Year two (2) Account Value to $35,767 on February 12th 2010.
Now for the eye popping math:
Do you know what type of IMPOSSIBLE market gain the client with this bloated pig with lipstick Variable Annuity would have to get to just break EVEN with the FIXED Annuity next year? Feb 2009 to Feb 2010.
It's 86.24%....just to stay even.
Want to know the truth about money?
Money is plentiful for those who understand the 7 simple rules of its acquisition.
#1) Start saving.
#2) Control your expenditures.
#3) Guard your money from loss.
#4) Safely earn money on your money.
#5) Make your home a profitable investment.
#6) Insure a future income.
#7) Increase your ability to earn more money.
The Five Laws of Money.
#1) Money comes in increasing quantity to any person who will set aside not less than 10% of their earnings to create an estate for their future and that of their family.
#2) Money grows diligently and contently for the wise owner who finds for it profitable, safe and reliable investments.
#3) Money stays with the cautious owner who invests it under the advice of those wise in its handling.
#4) Money slips away from the person who invests it in businesses or purposes with which he is not familar or which are not appoved by those skilled in its keep.
#5) Money flees from the person who would force it to impossible earnings or who follows the alluring advice of tricksters and schemers or who trusts it to their own inexperience and romantic desires for investments.