You have heard the old saying, “you can’t have your cake and eat it too!” But what if you could?
Retirees often desire lifetime income **guarantees while maintaining their principal balance – which has been possible with some annuity strategies – even in this low interest rate environment if income expectations are inline with assets. The greatest challenge recently has been the ability for annuities or banking products to… [continued below video]
Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. During this segment, Dick and Eric are referring to Fixed Annuities unless otherwise specified.
[continued]…grow at a level commensurate with the level of return required to meet the income desires of the annuity owner. The key element to this equation is not one we often discuss with fixed annuities and that is the element of growth potential verses **guarantees. Before we go too much further in discussing growth potential with fixed and fixed index annuities, we are not comparing the returns or risks to those associated with the purchase of equities. We are looking at MarketFree® Annuities for safer options where one gives up some upside potential for the elimination of investment losses in a down market. Since the time period when the Federal Reserve “cratered” the prime rate, it has been tough to find **guaranteed rates from banks or insurance companies with yields even approaching 4%. Unfortunately, when returns are this low in **guaranteed products, many retirees have been forced to withdraw portions of principal to sustain their lifestyles or forced to take investment risk with their portfolio in order to achieve their desired growth.
Despite the tough economic environment, annuity companies have continued to innovate and develop products that truly offer unique benefits and **guarantees especially in the areas of growth and income.
The proliferation of insurance companies working with investment companies to offer clients access to a variety of indexing strategies has really put growth back into the discussion when evaluating the hybrid style fixed index annuities. This innovation has created annuities with higher interest rate potential for people looking to take realistic withdrawals while having the potential to maintain their principal balance without having to take any market risk.
Many financial advisors have started utilizing this new class of annuities as a core allocation for their clients portfolios. It solves the issue for many retirees who need real growth but cannot afford to enter or remain in the securities market and suffer debilitating losses, negatively impacting their retirement lifestyle.
These are not your grandfathers annuities. This is a new class of annuities aimed at offering growth potential and income – all while protecting one’s core retirement dollars from loss.
If you have not heard much about these financial instruments, it might be time to ask some questions about what you can do for **guaranteed income while safely growing your retirement portfolio.
Using OutCome Based Planning™ for Your Retirement
"The Annuity Guys will never call you unless you request our assistance". When you are ready for specialized help we will be available to assist you.. We practice and recommend a "Holistic - OutCome Based Planning™ process when considering annuities." This approach has the effect of balancing your overall portfolio with annuities so you can meet your retirement objectives by "first identifying the least amount of your investments or savings that should be considered for annuities." OutCome Based Planning™ analyzes and models multiple outcomes so you can clearly identify your best income and growth opportunities.
"Working with an Experienced Fiduciary Financial Planner can help you Avoid a Trial & Error or Risk Based Retirement"
If you have done a little internet research, you are probably aware that you can choose from hundreds of annuity advisors/salespeople who will try to convincingly promise you that they have the best annuities and advanced strategies for all of your money. Indeed, there are many advisors who claim to have "that one best solution, best annuity or best strategy; this, however, is not the way we approach or recommend that you do retirement and income planning" since we believe that there are many good solutions for you to consider. Our recommended process is directed towards looking at several plausible financial strategies with different successful outcomes based on your financial situation. This process helps you to compare and select one of the best solutions "that you are most comfortable with.
This type of approach does take considerably more time, effort and analysis which will show you mathematically the successful possibilities by comparing various outcomes rather than trying to sell or convince you of that "so-called one best solution." Clients frequently tell us that this process removes some of the confusion and emotion to help them objectively identify a better retirement plan; rather than just ending up with the most convincing salesperson or advisor.
When requesting help you can be assured of working with an experienced Annuity Guys' Retirement Planner who is an independent, licensed insurance agent and (also a securities licensed fiduciary financial planner) who has access to many different companies and annuities in helping you choose the best annuities using a holistic-outcome based planning approach. We consider the high quality advisor recommendations we make to our website visitors as a direct reflection back on us.