Ben Stein How Not to Ruin Your Life

Yahoo! Finance User - Saturday, May 10, 2008, 1:10PM ET  Report Abuse

• Overall: 2/5

Want an Annuity? Buy a VANGUARD Annuity. Lowest fees in the business, and no surrender charges. Concerned about rising food and gas prices? That's easy, do your body a huge favor and EAT LESS and WALK MORE!

Yahoo! Finance User - Friday, May 9, 2008, 6:00PM ET  Report Abuse

• Overall: 5/5

Funny, a lot of the idiotic comments on here are about Ben's movie, not this article. Great article, Ben. Yes, congress is spending us into oblivion, causing inflation to take off. If we get more liberals (republican and democrat) in office things will get MUCH worse.

Yahoo! Finance User - Friday, May 9, 2008, 12:24PM ET  Report Abuse

• Overall: 1/5

"(In the interest of full disclosure, bear in mind that I'm an honorary spokesperson for the National Retirement Planning Coalition, and one of that organization's endless list of members is the trade association for variable annuities. Also bear in mind that they've been about the best investment the Steins have ever made.)" This is the first time I can remember that Mr. Stein has bothered to disclose his ties to the insurance industry. Better late than never. Remember, the fees connected to broker sold variable annuities are very high. Don't expect your broker to steer you to a less expensive investment.

Jose Sanchez - Wednesday, May 7, 2008, 10:03PM ET  Report Abuse

• Overall: 5/5

Ben, Nice job again. You bring a Macro view and advice to go with during times of uncertainty. Your years of experience and living thru it helps a lot. I can't wait for your next piece as we move into the next market cycle and incremental change to equities, commodities, real estate woes, and market upswings. For the "people" who rate this guy at a low score are losers that have financial problems, don't see the big picture, probably have personal issues and physical shortcomings that cause them to be frusterated and incompetent -- good luck to those that rate 1 star -- it's a reflection of their own personalities. Jose.

Ping - Wednesday, May 7, 2008, 3:53AM ET  Report Abuse

• Overall: 1/5

Weak and hollow column, Ben. And a truly rediculous movie. Please, bring back the Ben Stein of old...

Road - Wednesday, May 7, 2008, 1:43AM ET  Report Abuse

• Overall: 1/5

truely bad advice.

shandrew - Tuesday, May 6, 2008, 3:41AM ET  Report Abuse

• Overall: 1/5

Ben Stein- Hilarious actor Unfortunately you should have stuck with acting. Your comments on religion and evolution were offensive and hateful. I'm removing this RSS feed from my reading list.

Doreen - Monday, May 5, 2008, 3:47PM ET  Report Abuse

• Overall: 1/5

Ben is really losing his mind. He can't figure out why we're in a recession? That's because he hasn't had to worry about how much things cost in DECADES. Sorry but I can't take anyone seriously who believes in creationism.

C.L.B. - Saturday, May 3, 2008, 9:48AM ET  Report Abuse

• Overall: 1/5

with 10% inflation how can anybody think that this guys "slow and steady wins the race" strategy works anymore.

Yahoo! Finance User - Friday, May 2, 2008, 5:36PM ET  Report Abuse

• Overall: 3/5

Ben: I usually find your articles to be better than this one, or at least have a little more insight. By the way, my mother put 600K in inflation-protected variable annuuities and all was fine...until she needed to take out 50K before her seven-year cash-out penalty was over. My mother had kept 25K in cash on the side, but now wishes she had kept more given that her default fee on the annuity she cashed-out to aquire $50K was almost 16K. No one could have seen what was coming that required her need for $50K, so I say to anyone who looks at the above mentioned financial vehicle, keep a lot more cash on hand than you think you will need. Yes, with low savings account rates inflation may eat away at it, but not as fast as having to surrender $16K to get $50K of your own money. I remember when I was young my mom would often ask me what was I thinking when I would do something not so bright. The role seems to be reversing now. I said to my mom, on discovering how much it cost her to get the $50k, what were you thinking mom; why didn't you come to me? I know what she was thinking/feeling? She wants to be independent. The same way I did when I was a teen and she would look at me in amazement when I would do things...a teen does. I guess things do come full-circle in life.

Got it in L. A. - Friday, May 2, 2008, 2:57PM ET  Report Abuse

• Overall: 1/5

Yahoo - please get rid of this guy. You may think that any attention is good attention, like any show business entitiy, but it's not. Google, anyone?

Dawn - Friday, May 2, 2008, 12:31PM ET  Report Abuse

• Overall: 4/5

I've had good success with Ben Steins advice - his Income investing book is excellant , his slow and steady , low-risk investment advice has done well for me . With a strong mix of Corp. bonds and high-yielding utility stocks like DUKE and ED , I've done well even in a down market . Good solid investing advice .

a - Friday, May 2, 2008, 12:22PM ET  Report Abuse

• Overall: 5/5

Good grief. What's with the religion fundamentalist blaming science for everything. Yea, blame the gun, not the people. 2nd, inflation = devaluation of dollar and it is caused by overspending and excess debt. And you know what, a democratic government is a mirror of its voters. If the government overspend, that means the majority of voters overspend. Unless that changes, the governement will act the way it has been acting all along.

Yahoo! Finance User - Friday, May 2, 2008, 12:37AM ET  Report Abuse

• Overall: 1/5

Mr. Stein you are out of touch. In the real world we know wall street punks like yourself make bogus comments to line your own pockets. Hey, now Ya-hoo prevents unlogged in viewers from reading your comments. Must be pearls of wisdom right?

BRIAN - Thursday, May 1, 2008, 10:40PM ET  Report Abuse

• Overall: 5/5

At your age, having lived during Nixon and the Vietnam war, inflation and a slowing economy should have been expected. As they say, those who do not read history are going to repeat it. Another Republican War and Stagflation.

Andrew - Thursday, May 1, 2008, 10:06PM ET  Report Abuse

• Overall: 1/5

Mr. Stein, since you (or whoever "we" is) don't know what's causing the rapid commodity price increases, I'll tell you, because I know. It's because governments are printing more money and spending it into the world economy. More dollars chasing the same or fewer goods and services means each dollar is worth less. Hence, higher prices. It's a process called "inflation". It's really a legal form of counterfeitting, and it's a way that governments steal our savings with most people not knowing what's happening, so they keep getting away with it. In keeping people in the dark, governments can always count on a generous assist from mainstream financial pundits, such as yourself. What I can't figure out is what guys like you have to gain by keepng the ruse going (?)

Yahoo! Finance User - Thursday, May 1, 2008, 5:24PM ET  Report Abuse

• Overall: 2/5

Wise advice to diversify Mr. Stein...but for many Americans studying their brokerage statements for the performance of the stocks in for their retirement is the last thing on their minds with many living paycheck to paycheck to keep pace the skyrocketing gas and grocery prices....................... You, like the Federal Government, is "out of touch" with average American working families, giving billion dollar bailouts to Wall St while the average familiy will get a $600 check which, won't even cover a single mortgage payment......................... The way to restore the US economy is for "tax free" institutions such as Harvard, Yale and Stanford to divest their endowments from foreign companies and to put them into US Treasuries until a new administration comes into office that can reign in Federal spending and improve the "value" of the dollar............... Hope you were burning "natural gas" for your fire........California already emits too much greenhous gases!

Yahoo! Finance User - Thursday, May 1, 2008, 12:58PM ET  Report Abuse

• Overall: 1/5

I wouldnt take any financial advice for someone who said this, and let me tell you Mr. Stein, without science a man such as you wouldve been dead at a young age at the hands of someone twice your size: In an interview with the Trinity Broadcasting Network, Ben Stein said the following amazing thing in an interview with Paul Crouch, Jr. Stein: When we just saw that man, I think it was Mr. Myers [i.e. biologist P.Z. Myers], talking about how great scientists were, I was thinking to myself the last time any of my relatives saw scientists telling them what to do they were telling them to go to the showers to get gassed … that was horrifying beyond words, and that’s where science — in my opinion, this is just an opinion — that’s where science leads you. Crouch: That’s right. Stein: …Love of God and compassion and empathy leads you to a very glorious place, and science leads you to killing people. Crouch: Good word, good word.

Yahoo! Finance User - Wednesday, April 30, 2008, 6:02PM ET  Report Abuse

• Overall: 3/5

I personally think that it is an option looking into. This is free advice so take it for what it cost you and do your own research. It's obviously very conservative and probably doesn't keep up with real inflation, but there are a lot of financial vehicles that have a much greater risk of losing your principle and Ben’s talking about retirement here. You do not want to be in a position to lose principle when retired and hopefully, you can change the products that you consume so that your savings emulates that of the Governments numbers. For example the government allows for exchanging of products to adjust for inflation - in other words, if you are used to eating filet mignon, but prices of filet go up, then change it to hamburger (as they both fall into the category of dinner food category) and that’s what the government does to calculate inflation figures. So as we get older, we may have to adjust our way of living to be in line with government inflation numbers. But I have a separate question for anyone who wants to respond. There seems to be a consensus view that (HELOC'S), that is Home Equity Lines of Credit are the great emergency product for a retiree in a financial crunch and I happen to disagree. I believe that a Personal Line of Credit at a reasonable interest rate (maybe 2-5 points above prime) is a much safer deal for a retired person. I would not want to be in a position where my shelter was on the line when I retire if I do not have the money to meet a monthly loan payment. The lenders promote the correct tax advantages for HELOC’s and the interest rate is cheaper, but would you not sleep better at night when you are retired knowing that you shelter was not on the hook for missing a payment. I am not promoting default, maybe a client can work out an arrangement on an Unsecured Personal Line of Credit to make the payments lower, but if you sign away your home as collateral, you have no bargaining power with the lender. Some unscrupulous types would rather get your home at an auction price than have any interest in renegotiating better terms or payment on your HELOC. I'd say go for the Personal Unsecured Line of Credit and get them while you are still working so that the lenders will give you higher limits. What are other thoughts on this subject, or a I just way out there in loony bird territory?

jarrett - Wednesday, April 30, 2008, 3:10PM ET  Report Abuse

• Overall: 1/5

This article, like many so called financial analyst, miss so much of what is going on. For example, "We don't know why, but even as the world economy is slowing, prices are rising -- and fast."....Really? Who is we? The answer is so basic it bewilders me that Ben doesn't know why. OIL PRICES!!!! Look at historic oil prices versus historic commodity prices. Any time oild rises so too will commodities. I shouldn't have to say it, it's common sense, but it takes oil to transport the goods, to get the employees to work, to get the salesman from house to house, to get the factory to make the bags the commodities are packaged with, yad yada.....OIL has an effect on almost everything in one way or another, and as it rises it becomes a world wide domino effect. Oil greases the economic growth rate, heck I'd venture to say the price of oil as a variable that effects economic growth rate would have a weight of 40% or more. This is why you can have a slowing economy but rising prices. But eventually, the slowing economy will cause oil prices to decrease, but it's slow. The reason it's slow is because so many oil players want to ride these prices out as far as they will go so they can continue to make historic profits (wouldn't you?)...and they these so-called analyst on Wall St. and in the media continue to get the oil fiasco wrong, which leads to artificial inflation of oil...which btw, copius research shows 30% of the price of oil can be explained by wall st. speculation....i.e. analysts not analyzing correctly!

Yahoo! Finance User - Wednesday, April 30, 2008, 11:34AM ET  Report Abuse

• Overall: 5/5

Someone stated that variable annuities are a good option "if you have enough to protect." I totally agree. Most of the benefits and/or add ons that guarantee withdrawal benefits (which do cost money but are well worth it in a lot of cases) work if you don't withdraw principal. So, if you have 100k in a variable annuity and you only need 5k a year from it, these guaranteed benefits can really help investors stomach turbulent markets, but if you have 100k in the account and you are withdrawing against the principal (or more than the guaranteed amount), there is no sense paying for a benefit that is diminishing. They are to hard to explain in one post, but I thought I'd try. Unfortunately, I think these benefits mostly help people who don't need the help because they have a lot of money. It's kind of like credit, you can only get it when you don't need it. Good luck researching!

Yahoo! Finance User - Wednesday, April 30, 2008, 11:31AM ET  Report Abuse

• Overall: 4/5

It seems like alot of people bashing this article and offering alternative advice seem to have their own agenda or product that they are pushing. In general Mr. Stein offers good advice for the ordinary investor. The bashing of Mr. Stein for recommending variable annuities to protect a portion of your retirement income shows a clear lack on intelligence or education on how the products work. Yes there are some really crappy va's out there with outrageous expenses, but if you look hard enough you can find some good products as well which are appropriate for some to provide income guarantees at costs which are similar to the total cost of mutual fund wrap accounts with no such benefit.

D - Tuesday, April 29, 2008, 10:58PM ET  Report Abuse

• Overall: 1/5

I respect Ben and his opinions. However, his celebrity and excellent memory alone do not make him perfect. He is just a man, and therefore full of biases and ego (opinion) just like the rest of us. When Ben should note regarding his variable annuity recommendations (which I could not disagree more with), is that inflation adjustments in these investments are typically pegged to the core rate of inflation, which is an absolute joke. This is the same inflation basket that the government uses when deciding how much to increase such things as social security payments each year. Given the fact that it is in our governments best interest to keep these costs as low as possible, they use wonderfully inventive ways to keep this figure low (check out the white paper at europac.net) - like removing such things as energy (gas) and food! - which happen to be two of the most significant expenses in the home of us commoners. So, if you really want to buy one of these products which Ben admits he is a cheerleader for, understand that not only can you buy inflation adjusted (protected) securities directly from our own government (an example being TIPS - Treasury Inflation Protected Securities) less the huge insurance commissions, but you will be sure to guarantee yourself a reduction in buying power (true wealth) by making such a decision. So, my advice would be to stick with a nice mix of stocks (foreign and domestic) bonds (short duration bonds since interest rate will start to skyrocket), commodities (as Ben suggested), and perhaps some managed futures (to reduce overall volatility through negative correlations) like the Zenith fund (www.zenith-resources.com). So, although I hate to disagree with Ben, let's face it, he makes his money as a celebrity and a promoter, not as a money manager. Sorry Ben. I love you and respect you, but you are only half right on this one:)

David - Tuesday, April 29, 2008, 7:40PM ET  Report Abuse

• Overall: 4/5

VA's aren't the best thing since sliced bread, but they are worth a look if one has enough to protect. There are some very good broker/agent sold ones but there are also some extremely inexpensive ones from Vanguard, Fidelity, TIAA Cref, Jefferson Pilot and more. The nice thing about the groups listed above is that there are no surrender charges (not true of broker/agent sold ones). One general rule to pass on, if someone wants you to put more than 50% of your liquid net worth in a VA, run away from their advice. Here are a few links: https://personal.vanguard.com/us/funds/annuities http://personal.fidelity.com/products/annuities/intro.shtml.cvsr

Raiddinn - Tuesday, April 29, 2008, 2:41PM ET  Report Abuse

• Overall: 3/5

I wont rag too much on variable annuities or any other kind. That being said, I wont cheer for them either. They work pretty well as a way to spend life insurance proceeds (in the single payment immediate form), but I cant imagine most people getting it in their mind to invest in them. That being said, for the people that just got huge proceeds such as a life insurance payoff, and they want to survive forever off the proceeds, the 10 cents on the dollar for inflation protection will serve them better than not paying it. The 10% cost would be recovered in 3 years worth of inflation anyway. Even still, some people would do well to invest in variable annuities. Mostly the people who would otherwise not invest the same money and they would just go blow it on beer. If Ben reaches such a person (however unlikely) through his column and gets them to start buying VAs, all the better for both of them. As for a stock centered way to protect yourself from inflation, buy stocks in Coke. They can raise their prices whenever they want without hurting unit volume or negatively impacting their business. Thats as good of an inflation hedge as any other. Thats the kind of hedging Warren Buffett uses to stupidly good effect. Other companies he owns that work similarly... Dairy Queen... See's Candy... and so on. As for the other advice, I dont invest with the money I need to have around to pay bills, and I dont suggest that people take reactionary measures with their portfolio when performance temporarily drops. I guess for that stuff I agree with Ben. Raiddinn

Dave - Tuesday, April 29, 2008, 2:30PM ET  Report Abuse

• Overall: 1/5

Your columns are usually much better than this. Usually I hear your dry voice as I'm reading it. As I read this, all I think is "editorial on how murder is bad". Perhaps you should spend less time lieing to scientists for 'documentaries' and more time reading what you write before you submit it.

Yahoo! Finance User - Tuesday, April 29, 2008, 1:31PM ET  Report Abuse

• Overall: 2/5

Ben, I normally rate your articles very high but this one bothers me. Surely the Cost to Benefit ratio of most annuities exceeds that of good, quality index mutual funds, doesn't it? Why would you want to enrich the insurance companies at the expense of your own portfolio? What does the comparison look like for 10 returns on your portfolio of annuities to your index mutual funds? I mean compare the good index funds to the annuities, not any "dogs" you have owned in the past. I am not a fan of annuities in any shape or form. That is my disclosure.

Yahoo! Finance User - Tuesday, April 29, 2008, 11:31AM ET  Report Abuse

• Overall: 2/5

To the poster below who praises Jim Cramer I'll say this. The only people who make money following Cramer is the brokers. Talk about over trading your account!! Cramer's returns don't even meet an S&P index fund return. So what would you rather do, spend all your days watching a thousand stocks and trying to time the market at Cramer does, or buy some diversified ETF's and sleep good at night. Barrons was right on the money about Cramer. Plus I honestly think the guy is a mental case. Anyone who takes Cramer seriously needs mental health professional.

trip - Tuesday, April 29, 2008, 11:20AM ET  Report Abuse

• Overall: 4/5

I am amazed at the difference in which the financial world views annuities. The vast majority of nay sayers seem to lump all annuities in together. The problem is all fixed or variable annuities are not alike. Take the time to get a fiscal checkup and if you still aren't sure, get a second opinion. There is "one stop shopping" available but "one size fits all" is not sound financial advice

Yahoo! Finance User - Tuesday, April 29, 2008, 11:13AM ET  Report Abuse

• Overall: 1/5

There is so much to comment on this peice of drivel, but I'll let the stupidity of this article speak for itself. As for the person who wondered why GW Bush bought massive acreage is South America...Well even dumb George is smart enough to see what's coming. The American public is about to learn a 200 year old lesson from the French. There is only one cure for the "Don't you dare tax me", "Let them eat cake" greedy mindset of todays Billionaires. Its called the guillotine.