Mr. Warren Buffett has a 15-minute plan on annuities. He has asked about annuities in business with Cigna. People wanted to know why he did it. Cigna agreed to pay $2.2 million dollars in cash and assets to Buffett and the Berkshire Hathaway to insure $4 million dollars of future claim money for both Cigna. Warren Buffett loves the word annuities. The annuities are tax-advantage to invest in mutual funds which means different accounts.
In the 2003 market, Mr. Buffett had a major hit that guarantees in liabilities to come in for companies. A person should invest in annuities so that they can enjoy their life later. Mr. Warren Buffett wants to make sure of it. The younger generations are already putting money into an annuity plan.
Mr. Warren Buffett wants to let Cigna reinsure their policies. There are 401(K) or an IRA retirement plan. Mr. Buffett says to put 10% of the money in short-term government bonds and 90% put in a low-cost S&P 500 Funds. Mr. Buffett suggests Vanguard’s and U.S. stocks are the best way to save.
When opening up annuities you should put $10,000 dollars for every $5.20 dollar in fees for a Vanguards low-cost funds. When you begin to work make sure that the employer has a retirement plan because that can help to have you covered. Cigna is one of the retirement fund company that would make sure all people who are putting money in their annuities can enjoy retirement.