Annuities sell in huge dollar amounts each year because they are so heavily pushed. People would never buy these products on their own. But salespeople push them so hard that annuity sales are outrageous. Clark is not a fan of annuities and the one he despises more than any other is a “variable annuity.” Salespeople will say these are “tax sheltered products,” which sounds attractive and lucrative. But with these annuities, you’re just avoiding taxes temporarily. So, when you spend the annuity, you’re taxed double. That in itself makes it a defective product. Even worse, the cost is sky high. And the third red flag is that you can’t get out of these products unless you pay a huge surrender fee. The cousin to the variable annuity is the “indexed annuity,” and it is equally as bad for your wallet. The only decent annuity is one that’s called an “immediate payout annuity.” This is a product you would buy if you think you’re going to outlive your money. You might take 25 percent of your retirement money and buy an IPA. Then, every month you automatically get a check. Now, you don’t want to put all of your money in an IPA because your family would have nothing to inherit if you died. And, if you die next week, all of your money is gone. But if you live a while, you will make money off the insurance company because the company has to keep paying you as long as you live. In addition, these products have very small commissions. Salespeople won’t mention them because of that fact, but you may want to ask about them.
Cars are getting more and more sophisticated these days. The German electronics company Siemens now has a technology that tracks your driving and tells you if you’re going too fast. It pops up on the screen right in front of you and even slows the car down for you if you don’t let up on the gas. The system is going to be available on cars coming out a few months from now. In other tech news, a few cell phone companies are working on a technology that will virally track traffic in your area. Most cell phones now have GPS. So, the cell phone knows where you are and how fast you’re going. That information can be extrapolated and synched up with your phone. This technology has been tested in Tampa and will soon launch in Ontario. People will be able to see how traffic looks ahead of you either on your phone or on a GPS screen in your car. It will show green for good traffic, yellow for sluggish traffic and red for stopped traffic. The goal is to have this technology working in dozens of cities around the U.S. within the year.
Clark has wondered if there would ever be a portable computer that would fit in a purse or pocket and still have a screen big enough to read. It’s always been kind of a niche product, and several companies have tried. Well, the latest one is here. Samsung has just released the “Mobile Intelligent Terminal” or MIT. The entire device (monitor included) weighs one pound and works on wireless networks. It was launched in Korea this week, but will probably be available in the U.S. in the next year or two. Compaq tried to build a compact, portable computer several years ago but it weighed 40 pounds and had a tiny screen. Clark thinks more companies will copy the MIT and we’ll see lots of them on the market in a few years. But check out the MIT if you get a chance.
Years ago, GM introduced the EV (electric vehicle) car. Clark got to test it out in the mid-90s and it was very forward thinking at the time. Unfortunately, the electric cars didn’t catch on and GM closed the books soon after. The company hasn’t given up completely, though. According to the L.A. Times, GM just launched another prototype that is an electric car and a gas car all in one. Basically, it works like an electric car for most of the day. Then, at night it switches to gas. Clark loves the fact that an American car company is working on this kind of technology. In recent years, Japanese companies have been responsible for all of the forward-thinking models. Let’s hope it doesn’t end up in Clark’s Graveyard.
Clark recently talked about the financial troubles Wal-Mart has experienced and how the company is discounting thousands of products to make up some of the costs. He said at the time that he would share “Black Friday” sale information with you once he had it. And that information is here. Just go to gottadeal.com. A 20-inch LCD TV costs just $248. Tons of toys and electronics are on sale, as well. Other retailers offering deals on the site are Best Buy, Circuit City, Office Max, Fred’s, Gamestop, J.C. Penney and many more. You can plan out what you want to buy and compare prices before you buy. Happy hunting!
In the homebuying market, the balance of power has shifted to buyers. Sellers have become more desperate. So, what tactic can you use to help you sell your home? Well, agents are being offered huge bonuses to sell certain homes these days. So, they’re doing what’s called “steering” to show buyers homes that may not fit their needs. In return, the agents are getting such goodies as $15,000 bonuses and free vacations. Now, there is nothing wrong with this as long as it’s disclosed. But often it is not. If you are a seller, you can use this tactic to your advantage. Offer agents a carrot to show your home of condo more frequently. As buyers, you should know this is going on and ask if you suspect that it's happening. But sellers need any kind of edge these days, and getting agents on your side is not a bad move.
