Annuities vs Income Fund – Round One

Which Can Give You A Higher Income? The Annuity Vs The Stock And Bond  PortfolioWith the Fed keeping rates artificially low, my Mother and her friends began to have problems with their retirement accounts.  

Annuity accounts there were paying them 5-6% a year and covering things like mortgage payments and utilities began paying 3%, 2%, even 1% and forcing them to pull money out of their retirement accounts to pay their bills.  Once you begin to go down that path – it's very hard to get back on track – especially for people whose earning days are long past.  

Doug Rapoport is the Fund Manager for Capital Trading Ideas, PSW Investment's hedge fund and he and I sat down and designed a new hedge fund that is based on our "Be the House, NOT the Gambler" that has been successfully practiced in our Butterfly Portfolio for over a decade now.  Working together, we came up with an Income Fund strategy that combines a predictable quarterly withdrawal without sacrificing the potential for growth and, though it's only been two months since we launced – I thought it would be a good time to report on our progress – especially as people interested in participating in quarter 2 MUST have their documents ready and money transferred by September 30th.

Here is Doug's Report:

Back in March 2001, I was an Executive Vice President at Gruntal & Co. acting as a financial advisor while also handling insurance needs and estate planning.  I was recently lured to their Fort Lee, NJ office after working on Wall Street and midtown New York for the previous 8 years including a year in the World Trade Center.  At the time, I lived in Edgewater, NJ which was the next town over so the 5 minute commute and the large bonus checks that were common at that time made the decision very easy for me. 

We had just come out of the massive dotcom bubble burst where many tech companies fell as much as 90% if they stayed in business at all.  And many other non tech companies were dragged along with it.  There comes a time in your life when some experience, gut feeling, and homework are amplified with a large amount of luck.  Before the…
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