Research, Plan and Prepare for a Successful Retirement

Guaranteed Lifetime Income - Is That Just a Return of My Own Money?

2011-11-16T09:34:00.001-08:00

This is definitely a real concern when considering an annuity for income. There are many annuities that claim to bring value and guarantee a lifetime income you cannot outlive, but what is fact and what is fiction. All annuities are created equal- Fiction! Some annuities can bring substantial value to your retirement plan - FACT! When it comes to income planning with annuities you basically have 2 choices. An immediate annuity / Annuitization: That is where your money is credited a minimal rate of return, (especially in today's economic environment) each yr on the portion that has not been distributed and then given back to you in a fixed income stream for a per-selected duration of time. Life, Life and 10, Life and 20 and so on.(Learn more about annuities) When a certain number is added to the lifetime annuitization that is the guaranteed period ie:life an 10 - if the contract owner only lives 5 yrs. the beneficiaries would receive the remaining 5 years of payments. If the contract was life only than the value of each payment will be hire but when the contract owner dies, the remainder goes to the insurance carrier. A life only payout is only used in very specific situations and will need to be fully evaluated before making that type of decision.
Another option available today is an annuity that offers a guaranteed minimum income benefit ie: The annuity will have 2 values; 1 value will be the cash value and the other value will be the income account value. The cash value is linked to a market index that can only go up and the income value will grow at a guaranteed rate between 5% and 10% depending on the contract. In some cases the income account value / rider will come with a fee which is deducted from the cash value.
The income account value is a NUMBER, it is not a real value..... That income value number is what your annual lifetime income is based on, at the time you elect to begin receiving a lifetime income from that account.
There are pros and cons to all annuities. Pros- helps to accomplish your goals and does what it is supposed to within your plan. Cons- not what you thought it was at the time of purchase. Some Key Questions You Need To Ask Your Advisor Before You Buy An Annuity To learn more research our website, ask me questions through this blog. All comments, questions and concerns are welcome. Or call 877-GROW-SAFE

Risk Free Retirement and Annuities

2011-10-26T12:07:00.001-07:00

So, you've taken the advice of all the stock market gurus, and bought stocks only to see yourself lose money. This is the story for most people reaching retirement age, who bought into the idea that buying stocks would insure a comfortable retirement. Unfortunately, for them no one mentioned the risk involved and the potential to lose the majority of their retirement savings.

The true risky nature of investing in the stock market isn't apparent until they begin to lose money, this right around the same time that their stock broker admits that stocks are inherently risky and promises that things will get better. Well things have not gotten better! Over the last 4 years the economy has gotten worse. This article will suggest a true risk free investment vehicle that you can safely place your money without worrying about the economy tanking. Continue to read about how an annuity can protect your retirement savings.

When most people think about annuities, they think about lottery payouts and game show payouts that are annuitized over several years. One question you should ask is why are these prizes offered as annuities instead of as lump sum payouts? The main reason why they are offered in the form of an annuity is because underwriters know that they can earn interest on the annuity and recoup some of the money they are giving away as a prize. For you, and annuity equals a safe haven where you can earn interest on your money without all the ups and down of the stock market. The only directional change that annuities have is upward. Every year you will collect a specific amount of interest. You will no longer have to worry about the economy or what the politicians are up to.

Consider the safety in an annuity to protect your hard earned retirement savings.

Retirement Planning "I should have bought annuities"

2011-09-20T08:38:00.000-07:00

If you are 60 years and older, most of your retirement plans presumed you had social security until death, that your company pensions were guaranteed, and that cost of living increases would go uninterrupted. I was born in that time frame and this is what happened to me.

Being born in the 1940's and 1950's, I supported the safety net, wanted health benefits attached to my job, and assumed that retirement at age 65 would be golden. Iearned several advanced university degrees and thought I was prepared for what would come. But now I'm fired, what next?
I should have investigated annuities that build money overtime and pay income during retirement years.

What happened? My employer fired me at 50 and it is difficult to find a comparable job. The economy is in recession and not expanding as hoped. Social security is being revamped since the government spent the money on other projects and the fund is reduced. Social security is regarded as dependency and everyone is expected to set up private accounts and do it themselves. We can not afford the safety net since the national debt is $14 trillion dollars and ascending. So what happened to my retirement planning?

I should have bought annuities over time to look after my own retirement needs. I should not have looked to government, my employer, or fate, but rather should have decided to look after my own interests through annuity investment.

Corporations and small businesses want to renegotiate my health benefits and pensions. What was promised is not set in stone. Many people are being let go by employers, as I was, as we came of age. We were too expensive to carry to term. I should have set aside money for annuities so that the money would be there for me at retirement.

My liberal arts degrees did not prepare me for self-sufficiency. I learned about the fight for unions, the growth of the welfare state, and thought I could be taken care of during my retirement.

My retirement experience is a warning to all to make their own plans independent of employer or government in order to set aside monies into annuities so that money can be income for eventual retirement.

Writer,
Anonymous

What Choices Do We Have Now For Our Safe Money?

2011-08-12T09:37:00.002-07:00

Great question..... With such a scary current economy things are not looking too positive for pre- and post retirees that were not diversified and or moderate to conservative in their investment philosophies. There are still great alternatives for your retirement money though. Fixed Annuities and Fixed Indexed Annuities still have the guarantees in place that will allow for a guaranteed income for the rest of your life.

There are many variations to these types of insurance contracts. Beware of products that look to good to be true. Are there any fees associated with the lifetime income account rider? How are these fees calculated? Are they calculated by a formula based on the cash value of the contract or the income value of the contract? Terminology explained

If you own a fixed indexed annuity and you have an income rider associated with your policy, you may want to ask your current advisor specific questions in regards to your policy. Or if you are considering purchasing a Fixed Indexed Annuity you will want to ask your agent these questions first.

1.Does the issuing insurance company publish their renewal rates?
2.Does the initial rate include a bonus rate, and how much is the bonus?
3.Is the bonus added to the income account as well as the cash account?
4.What is the guaranteed minimum interest rate?
5.Are there fees associated with this contract? how are they calculated?
6.Is this a single premium or flexible premium contract?
7.Is this a Fixed-Indexed Annuity or a Fixed Annuity?
8.What is the initial interest rate and how long is it guaranteed?
9.What renewal rate is the company crediting on annuity contracts of the same type that were issued last year?
10.What income payment options can I choose? Once I choose one payment option, can it be changed?
11.Are there withdrawals or surrender charges or penalties if I want to end my contract early and take out all of my money, and if so, how much are they?
12.Is there a market value adjustment (MVA) provision in my annuity?
13.What other charges, if any, may be deducted from my premium or contract value?
14.Is there a death benefit? How is it set? Can it change?
15.What are the best annuity rates available today?

More questions to ask at: Questions I Should Ask My Advisor

Fixed Indexed Annuities Explained
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Seeing Through The Fluff "If It Looks Too Good To Be True......"

2011-08-09T13:15:00.000-07:00

Being in the middle of the independent annuity distribution world I understand all the fixed and fixed Indexed Annuities available and how they work. The GOOD, the BAD and the UGLY....I understand these types of products better then the advisors selling them. Many financial sales representatives are just taking advice from carriers and marketing organizations and being sold themselves. Not really understanding the good the bad or the ugly within these contracts.

There are still some great products available but many times they are overshadowed by appearance more than substance. Did you ever hear the saying "if it looks to good to be true...." Well that has become the case with many NEW Fixed Indexed Annuities. Fixed annuity rates and fixed indexed annuity caps are currently at an all time low but still more attractive than most alternatives such as CD's, Savings etc... These products can offer a lifetime income you can not outlive, and in today's growing life expectancy that can be a real benefit to your retirement. Keep in mind How Financially Strong is The Carrier Offering The Product. These contracts are only as good as the issuing company behind them.

You still have choices and you still need to be aware of features that take away from the true value of these types of contracts. The point I am trying to make is that you should utilize my expertise. Reach out to me, ask me questions, leave comments, concerns, situations I may be able to assist you with. There is no single Safe strategy for all your money but there are Safe Money Alternatives for the money you can not afford to lose. Even in today's economy... I am here to help. "My Vision Is Your Success" Independent Insurance Representatives visiting this blog please remember "Your Clients Are Counting On Us"
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