Posted:
#26
I've lived in Florida my whole life, I am used to being covered in sweat before I even make it into my car in the morning.
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Am I too optimistic?
Posted:
#27
Quote Originally Posted by ogmike:
Put in an order yesterday for Sandridge Energy (SD) at $17 and it filled. So, I guess I'm just about all in right now. Increased my position in GE several weeks back too, so hopefully the Buffet deal will draw more investors back in. GL everyone with whatever their current situation is, and thanks again for all the advice.
Good luck bro, not the direction I would have gone but I will root for a long, cold winter to try and help you out.
Does SD have a large presence in Oklahoma or is it the areas further east like Arkansas/Louisianna? I've forgotten the things I learned about nat gas back in May/June when I was playing in that sector.
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Posted:
#29
Quote Originally Posted by jaxwhitey:
Good luck bro, not the direction I would have gone but I will root for a long, cold winter to try and help you out.
Does SD have a large presence in Oklahoma or is it the areas further east like Arkansas/Louisianna? I've forgotten the things I learned about nat gas back in May/June when I was playing in that sector.
Good luck bro, not the direction I would have gone but I will root for a long, cold winter to try and help you out.
Does SD have a large presence in Oklahoma or is it the areas further east like Arkansas/Louisianna? I've forgotten the things I learned about nat gas back in May/June when I was playing in that sector.
Jax,
Here in Arkansas Chesapeake out of OK is drilling for natural gas around our state like stink on you know what.
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Posted:
#31
I would say to invest some but not all. I am 29 and just started my IRA with a $2000 deposit. i put it in some mutual funds and got my ass kicked. i sold them and bought Wells Fargo when it was down at $24. I just sold that yesterday at $38.25/share. i think it will go down below $30 in the near future and will probably get back in cuz the dividend was pretty good. I just invested all that money into Visa. I just dont see how you can go wrong with Visa at its current price. So right now i have made over 50% ROI so far this year in a shitty market. Could have been more but lost a bunch with the mutual funds. Right now there are so many companies that have been beaten up because of the whole bank mess and has nothing to do with the company itself. You just need to find them. I really really like Caterpillar at todays price as well as John Deere and Cummins.
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Posted:
#32
Quote Originally Posted by jaxwhitey:
Good luck bro, not the direction I would have gone but I will root for a long, cold winter to try and help you out.
Does SD have a large presence in Oklahoma or is it the areas further east like Arkansas/Louisianna? I've forgotten the things I learned about nat gas back in May/June when I was playing in that sector.
Good luck bro, not the direction I would have gone but I will root for a long, cold winter to try and help you out.
Does SD have a large presence in Oklahoma or is it the areas further east like Arkansas/Louisianna? I've forgotten the things I learned about nat gas back in May/June when I was playing in that sector.
Thanks man. SD is actually headquartered in Oklahoma City. A fairly young company on the up and up. KOAJ is correct, they have very good management there. CEO is co-founder of Chesapeake Energy. As for their exploration, they drill mostly in Texas, especially West Texas. I just feel like natural gas is a great long-term play, and SD was sitting near $70 back in July. Energy is definitely taking a beating.
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Posted:
#33
My main worry with nat gas is over production. Everybody got overly excited when they figured out how to make shale drilling work profitably and as a result they got way ahead of themselves adding production.
Hopefully the farmers almanac is right and we get a long cold winter, that should help you out.
Unfortunately I think the Pickens Plan will never get off the ground now that oil has begun its fall, that would definately have been a boost.
Hopefully the farmers almanac is right and we get a long cold winter, that should help you out.
Unfortunately I think the Pickens Plan will never get off the ground now that oil has begun its fall, that would definately have been a boost.
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Posted:
#35
Quote Originally Posted by wallstreetcappers:
JWK,
FIA?
Just kidding, I am out of the market and have been for a while as noted above.
I never sold an annuity, so my 7% number was probably incorrect but for some reason it stuck in my mind.
When I was a broker in Philly we would get the normal sales call from the firms pushing fixed products/annuities..bring some lunch crap and a bunch of handouts, chatchkis (sp) and stuff to motivate us to sell the product. I would sit and listen, then read the details and puke on the way home.
That is why I wasnt a million dollar broker..the people who make the big money either have contacts galore or are light on conscience..I dont mean that in a bad way but the real way to make money in the market as a broker is to put people in products that pay you TOP dollar..so annuities or VA/FIA gems, A share funds, anything that makes YOU the most money, and for the firm as well.
Now people are total saps if they cannot read and understand what they are agreeing to and dont take the time to figure out that the annuity in question is usually a mock of some other index or mutual fund but with some lousy insurance policy thrown on and a boat load of fees and restrictions..if people were to look at the average annual returns for the annuity, say an SPX based annuity, and an ETF for the same index, they would punch the broker in the face.
Sorry but I just could not do what was best for me and not for the client.
JWK,
FIA?
Just kidding, I am out of the market and have been for a while as noted above.
I never sold an annuity, so my 7% number was probably incorrect but for some reason it stuck in my mind.
When I was a broker in Philly we would get the normal sales call from the firms pushing fixed products/annuities..bring some lunch crap and a bunch of handouts, chatchkis (sp) and stuff to motivate us to sell the product. I would sit and listen, then read the details and puke on the way home.
That is why I wasnt a million dollar broker..the people who make the big money either have contacts galore or are light on conscience..I dont mean that in a bad way but the real way to make money in the market as a broker is to put people in products that pay you TOP dollar..so annuities or VA/FIA gems, A share funds, anything that makes YOU the most money, and for the firm as well.
Now people are total saps if they cannot read and understand what they are agreeing to and dont take the time to figure out that the annuity in question is usually a mock of some other index or mutual fund but with some lousy insurance policy thrown on and a boat load of fees and restrictions..if people were to look at the average annual returns for the annuity, say an SPX based annuity, and an ETF for the same index, they would punch the broker in the face.
Sorry but I just could not do what was best for me and not for the client.
I just read this and quite frankly I find it to be very insulting. My products are guaranteed at an interest rate of around 4-7% and usually have large bonuses. Why don't we ask the guy who just lost 30K out of his 401K the past 8 days if he would rather have put his $$$ into a fixed rate product. Yes there are greedy agents out there but you are out of line trying to pigeon hole people that way.
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Posted:
#36
JWK,
I speak from being on your side of the table, not as some industry whistle blower and my comments come from experience with them and my opinion about the products.
How are you servicing the client in the best way possible by over charging them for a simple insurance policy? That is what an annuity does, it charges a premium for an insurance policy and you are right, in a nasty nasty bear market, having that slightly better than MM rate can be appealing to scared investors or those who are risk intolerant. Most people (from my experience) are completely unaware of the downsides of an annuity, specifically those early exit penalties and the higher fee structure.
Also most people who actually cut inside the annuity and see what the instrument is trying to mirror, figure out that the upside is completely gone and if it is an index or fund based annuity, if they compared the performance and return to that of the similar index, it isnt even close..
Annuities are some of the worst products available, and the comment that "people would rather not be in the market and get a 4-7% rate" works when everything is getting killed, but what about the last bull move from 2002 to 2008? Those annuity holders had no upside exposure and were earning a set rate, in some cases less than money markets.
I dont make my comments to offend you, rather my views on products that pay the broker and the firm are based on EXPERIENCE and nothing else. More brokers than not look out for their bottom line and I hope you are one of those that arent. Being a broker is really being a salesman, the entire stock market is based on sales..selling stock, selling research, selling investment banking services. For me to state this fact shouldnt be an insulting comment towards you, rather just a reality of the markets themselves.
I speak from being on your side of the table, not as some industry whistle blower and my comments come from experience with them and my opinion about the products.
How are you servicing the client in the best way possible by over charging them for a simple insurance policy? That is what an annuity does, it charges a premium for an insurance policy and you are right, in a nasty nasty bear market, having that slightly better than MM rate can be appealing to scared investors or those who are risk intolerant. Most people (from my experience) are completely unaware of the downsides of an annuity, specifically those early exit penalties and the higher fee structure.
Also most people who actually cut inside the annuity and see what the instrument is trying to mirror, figure out that the upside is completely gone and if it is an index or fund based annuity, if they compared the performance and return to that of the similar index, it isnt even close..
Annuities are some of the worst products available, and the comment that "people would rather not be in the market and get a 4-7% rate" works when everything is getting killed, but what about the last bull move from 2002 to 2008? Those annuity holders had no upside exposure and were earning a set rate, in some cases less than money markets.
I dont make my comments to offend you, rather my views on products that pay the broker and the firm are based on EXPERIENCE and nothing else. More brokers than not look out for their bottom line and I hope you are one of those that arent. Being a broker is really being a salesman, the entire stock market is based on sales..selling stock, selling research, selling investment banking services. For me to state this fact shouldnt be an insulting comment towards you, rather just a reality of the markets themselves.
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Posted:
#37
The only time we use "Annuities" is when the client is too old/unhealthy to qualify for Variable UL. We work the senior market and these people don't have the same risk threshold as other folks do.
Like I stated above, Allianz Life Gendex2 is the product. I will send you the product guide and then we can debate.
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Posted:
#38
JWK,
You have an online brochure for their products? I am more than happy to check them out online if all the info is there.
I know this..annuities (VA/FIA) are GOLDMINES for financial firms. Notice how tightly AIG is holding onto some of their assets and businesses. When a product is a goldmine for a firm they are not good for the consumer.
I have a friend who got his licenses and works for Metlife and is pretty close to making enough income stream via annuities that he doesnt need the main job anymore..I gave him a hard time about it but the guy is a saleman and he knows what he is doing and why.
I just couldnt cross that line..most can and have no issue, I just couldnt do it.
You have an online brochure for their products? I am more than happy to check them out online if all the info is there.
I know this..annuities (VA/FIA) are GOLDMINES for financial firms. Notice how tightly AIG is holding onto some of their assets and businesses. When a product is a goldmine for a firm they are not good for the consumer.
I have a friend who got his licenses and works for Metlife and is pretty close to making enough income stream via annuities that he doesnt need the main job anymore..I gave him a hard time about it but the guy is a saleman and he knows what he is doing and why.
I just couldnt cross that line..most can and have no issue, I just couldnt do it.
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Posted:
#40
hey wall.....my mother who is in late 50's got divorced and took out her half from her 401k and to avoid having to be put in the highest tax bracket had to reinvest 35k and without advising me she went and put it in an annuity....i have two questions...1) it turns out that the annuity is with aig, how is she protected if at all (35k annuity) and 2) how badly did she get hosed on this...keep in mind this was before the aig collapse...she was forced to invest it within 60 days i believe or she would of had to pay the tax on it at the moment and she got out of the penalty of the 401k as long as she reinvested she took out cash and just claimed it but put 35k into this annuity....if you could respond would be appreciated greatly....also what advice if any at this moment could there be
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Posted:
#41
The Annuity is protected by what is called "Legal Reserve". What that means is that if AIG were to go under then insurance companies operating in you state will take over their business. The principal is covered but the gains aren't always.
The main problem with Annuities are surrender charges. Your mom's money is available to her at all times but if she needs tome withdrawal $$$ before the "accumulation period" is over then she will have to pay a surrender charge to AIG. The gains will always be taxed by the IRS.
Her money is growing at a tax-deferred rate and she has no exposure to market loses.
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Posted:
#42
kingpin,
JWK deals in annuities and knows what he is talking about.
My only addition to his comment would be if I knew more about the annuity I could comment more.
He is right about it being with AIG, they wont go under if AIG gets bought out or goes under..the account would be sold or transferred to someone else and the annuity would stay intact barring some wacky meltdown (meaning the insuring agency that JWK is talking about goes belly up).
JWK deals in annuities and knows what he is talking about.
My only addition to his comment would be if I knew more about the annuity I could comment more.
He is right about it being with AIG, they wont go under if AIG gets bought out or goes under..the account would be sold or transferred to someone else and the annuity would stay intact barring some wacky meltdown (meaning the insuring agency that JWK is talking about goes belly up).
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Posted:
#43
Quote Originally Posted by jasonwhitesknee:
The Annuity is protected by what is called "Legal Reserve". What that means is that if AIG were to go under then insurance companies operating in you state will take over their business. The principal is covered but the gains aren't always.
The main problem with Annuities are surrender charges. Your mom's money is available to her at all times but if she needs tome withdrawal $$$ before the "accumulation period" is over then she will have to pay a surrender charge to AIG. The gains will always be taxed by the IRS.
Her money is growing at a tax-deferred rate and she has no exposure to market loses.
He never said whether this was a fixed or a variable annuity. If it's not fixed she's very exposed to market losses. Hopefully it's just an AIG Ovation Fixed.
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