Can Safer, MarketFree™ Annuities Balance Your Portfolio?

With markets at all time highs… what better way to retain your gains than with safer, MarketFree® Annuities in your retirement portfolio. Most retirees are looking for ways to secure at least a portion of their retirement savings from the uncertainty of the volatile securities market and that is just what MarketFree® Annuities are best at!

Definition:

Market Free® -annuity -retirement and -portfolio; each refer to the use of fixed insurance products with minimum **guarantees that have no market risk to principal and are not investments in securities.

Video: Watch as Dick and Eric discuss balancing portfolios for retirement with safer, MarketFree® Annuities

**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.

MarketFree® Annuity Income Advantages:

  • Retire and Never run out of money;
  • Contractually **Guarantee Lifetime income;
  • Fight against the ravages of Inflation.

MarketFree® Annuity Growth Advantages:

  • Gain when markets go up;
  • Keep your Gains when markets go down;
  • Protect Principal from losses.

MarketFree® Annuity Estate Advantages:

  • Heirs can receive the full account value with no penalty;
  • Heirs can receive money without being tied up in probate court;
  • Heirs can defer tax over their lifetime with traditional IRA MarketFree® Annuity;
  • Heirs can be tax free over their lifetime by using a Roth MarketFree® Annuity .

MarketFree® Annuity Liquidity Advantages:

  • Retain Majority Control;
  • Have access to approximately 10% of the account value penalty free;
  • Control when a lifetime income stream should be started for maximum advantage.

MarketFree® Annuity Risk Advantages:

  • Avoids all direct market risk to principal and gains;
  • Avoids direct Bond risk;
  • Protects against Longevity risk.
  • Guarantees are based on the claims paying ability of issuing insurance companies;

MarketFree® Annuity Disadvantages:

  • Long Term Commitment;
  • Limited Liquidity;
  • Limited potential gains in a robust economy;
  • Does not have FDIC insurance protection;
  • State Insurance Guarantee Association (SIGA) backing varies from state to state and MarketFree® Annuities are not backed by the full faith and credit of the federal government;
  • May have fees.

Helpful Retirement & Annuity Calculators

Our Most Advanced Retirement Income Calculator - Free

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.



Get Two Helpful DVDs & Our Library Edition - Annuity Reference Book


Based on survey feedback from advisor recommendations we made to our site visitors, we eliminated about two-hundred local advisors and now only recommend about six that we consider highly qualified Annuity Guys' Advisors on our national stage. Local advisors continually ask us to recommend them and they offer to pay us large fees for our referrals. However, our reputation and future business is driven only by satisfied website visitors. So, unfortunately we've had to tell the vast majority of local advisors no, since we changed our business model four years ago. At that time we stopped trying to satisfy everyone and instead, we now primarily work with individuals that are comfortable leveraging today's internet technology to their fullest advantage by working with a select group of experienced and knowledgeable Annuity Guys' Planners.


Priority Mail - Shipping is Free Our Gift to You


After confirming your request for help and shipping address by phone, we will immediately send your FREE personally signed Library Edition of our popular Annuity Reference Book "The New Retirement" plus Two Fact-Filled DVDs!

Have a chat with Dick or Eric. "We will help you in determining which annuities, if any, might be best for you."


Speak to an *Annuity Guy's Vetted --Fiduciary Financial Planner-- "For Your Retirement's Sake"


Confidential, Secure, No Spam




“I wanted to thank you for your annuity guys advisor referral. He is a perfect match for us... If there is ever anything I can do for you please let me know. Thanks again and take care.”

John in PA

“Been so busy I haven't had the time to write and say thanks for the referral. She is awesome ... Thank you for your guidance.”

Alex in TX

“Dick, Thank you again for your referral. I am indebted to you for all your support ... ”

Jack in CA


Selecting the Best Annuity & Retirement Income Advisor

Are you willing to work with an Annuity Guys' retirement and annuity advisor based on their experience and expertise as a first priority rather than being limited by a local or regional area? The good news is that technology has forever eliminated our geographical limitations and leveled the playing field for everyone! As a result of today's technological advances, all of us can now work confidently with experts in any field including personal finance. We are no longer confined by regional or local boundaries limiting our choices and ultimate success. A high quality Annuity Guys® advisor is now as close as a click or phone call away.

Video:"Choose a National or Local Advisor"?
"There is no room for trial and error when it comes to choosing MarketFree® Annuities or a Successful Retirement Planner."
When you think about it, your money is almost always in some other state with a custodian; whether invested in the market or with an annuity insurance company, the advisors competence is primarily needed when positioning your money initially. So working with a specialized expert in a financial discipline like annuities or retirement planning is imperative. There are no undo buttons in retirement! Once the annuity or annuities get set up correctly, it is customary and more efficient for annuity owners to benefit by having direct access to the annuity issuer instead of having to go through the agent. And, of course any reputable advisor, local or national, is more than willing to assist their clients if needed after annuities are implemented.
Video:"Why These 3 Types of Annuity Advisors are Not Created Equal"
"There are no undo buttons in retirement so it is vitally important that you do it right the first time!"

We are fortunate to have a select few who we believe are truly the highest qualified annuity and retirement advisors out of about two hundred licensed insurance agents that we eliminated. Your survey feedback is what helps us make these tough decisions. The Annuity Guys advisors have an independent financial practice, specializing in annuities and retirement planning, which helps ensure that you are given the best annuity options available for your retirement planning.

Video: "How Much of Your Money Should You Consider Placing into Annuities"?
"It takes an experienced expert to know how to structure annuities for income, inflation, growth, return of principal, and tax advantage."

"Anyone can sell you an annuity; however, it takes a truly qualified and experienced advisor to know how to structure annuities for income, inflation, growth, return of principal, and tax advantage. Typically, there is not just one annuity that can accomplish all of these objectives. It is how an annuity advisor structures multiple annuities in balancing your total portfolio that makes it possible to achieve your most important retirement objectives."

Video: "How to Choose a Great retirement Advisor"?

Why Searching for the Best Annuities on Your Own Can be so Frustrating...

Almost everyone nowadays turns to the internet for answers on everything - from buying new widgets to researching just about everything under the sun; and finding the best annuity is no exception!At first, it may seem that researching annuities will be straightforward but the more time you spend researching them, the more frustrating it can be. Why is this? First of all, it does not take long to realize that gimmicks abound - such as warnings and alerts from salesmen who just want your attention so they can sell you an annuity or the "too good to be true" claims of 8% to 14% **guaranteed interest and of course the claim that you can get the full market upside with no downside risk! If you have done any research you have heard all of these claims in advertising which are mostly half truths and not fully explained.So how can you find the best annuities on the internet? The truth is... you can't! And what is even more frustrating is all the conflicting points of view from so called experts. There are well over 6,000 different annuities - all designed for different reasons, so is it any wonder that the deck is stacked against the average researcher or do-it-yourselfer. Add to that the fact that annuities pay high enough commissions to attract a plethora of both good and bad agents. This does not make annuities good or bad; they are simply a financial tool that truly benefit those who use them correctly.How can you find the best annuities for your unique situation?
  • Use the internet cautiously;
  • Work with a vetted and experienced annuity specialist;
  • Do not settle for that one dubious best plan or annuity compare multiple Outcome Based Plans to decide on the one that is truly best for you;
  • Be keenly aware of scare tactics and hyperbole - avoid those advisors and websites;
  • Avoid websites that are focused on rushing free reports, rates and quotes to get your contact information they are rushing you to speak with them, instead, take your time and choose someone you are more comfortable with that works on your time-table;
  • Know the Five Vital Factors (listed above) that an experienced annuity specialist must answer before helping you select the best annuities for your situation;
  • Watch this telling video "Avoid Annuity Gimmicks, Amateurs and Charlatans"...


Video: "Avoiding Gimmicks, Scams & Charlatans"

Video Transcript

Dick: No downside risk and for some situations folks, these annuities are going to be more geared towards income, sometimes they will be more geared towards growth. What you want to look at with market safe annuities is the first common denominator; protects the principal, it can’t go backwards unless you’re spending it. And then does it meet your retirement objectives? Your priorities?

Eric: Right. Ultimately, when you have retirement savings, its really nothing more than can I delay spending it? So, you’re going to have those dollars to spend or your heirs will have them to spend.

Dick: Exactly.

Eric: Talk about spending, I guess we should talk about some the advantages here

Dick: Yes, and there’s some disadvantages too.

Eric: Balanced and fair. We are all going to be balanced and fair today.

Dick: Let’s start out, let’s take what you’re saying… let’s take the advantages, let’s take them in categories; and then we’ll pile the disadvantages on in the end.

Eric: Alright.

Dick: You’ve got to stay tuned for the disadvantages.

Eric: Are there income advantages with market safe annuity.

Dick: Well, there’s obviously… that’s probably the strength of annuities, at least the perception of annuities; and it’s true, you can actually set up a pension style income where you can never outlive your money; and that’s a huge thing. A lot more weight should go to that than what people give it because our life expectancies nowadays just continue to stretch out there; and the trend is that the insurance companies, the annuity companies are basing their benefits on a life expectancy that continues to go up. So, they’re kind of lagging behind.

Eric: They’re using old information to project their base numbers on future ageing populations and we all know that health care is

improving in the sense that we’re going to live longer; and wouldn’t it be nice to have a contractually **guaranteed lifetime income.

Dick: Well, I think that’s the key. Once you start to understand what a contractually is – that it is your own personal pension, that you’ve set up and obviously you want to deal with some high rated carriers and insurers.

Eric: Right. You want to make sure the company’s is going to pay you as long as you are… especially if we know you’re going to live a good long life.

Dick: One thing a lot of folks are worried about is inflation.

Eric: Well, this is where structuring is important, and this is the part of the portfolio I think; you want to use an annuity, a portfolio that has a strategy to combat inflation or there are actually annuities out there that also can be used as hedges against inflation… which would be the CPI index or…

Dick: One of the things that we use in terminology is a markets safe portfolio or markets safe annuity portfolio. Because you know your whole portfolio isn’t necessarily going to be market safe or you don’t necessarily want it to be market safe.

Eric: You want some money at risk?

Dick: You want some risk? Sure, because it’s a lot easier to take some risk when you know that you’ve got all the basics covered; your income is covered…

Eric: And you then really appreciate having a market safe annuity. When you see some of your risk dollars go down a little bit and those don’t.

Dick: Yes, Then you think that “I was a genius that I set up a market risk retirement with annuities”.

Eric: So, we’re looking at the risk – if you’ve got a market safe annuity, what about growth? Do we have growth advantages?

Dick: Well, you know sometimes you want to combine those together. Sometimes you want growth and you want income, but let’s just take income out and let growth stand on its own two feet Some folks just want growth and they don’t want to take risk.

Eric: Well, and so wouldn’t it be nice to participate in some of the upside of the economy and the gains in the market without having to backslide at all…. protecting your principal.

Dick: Exactly, that’s that this newer generation of market safe annuities does it gives you that market upside, not the full, but a limited market upside potential with no downside risk at all to your principal. And that’s just huge. If you’re able to be satisfied with reasonable interest earnings, gains that are pulled outside of the market; we’re talking about what we’ve seen in the studies have shown is exceeding the banks – sometimes by four or five times what the banks are; maybe ten times in today’s money based on what the banks are paying.

Eric: And that’s the key… you’re going to beat the bank historically. Now, are we set to try to compete with what your broker will tell you is an – eight percent market return over your life?

Dick: Eric, everybody makes eight percent in the market, right?

Eric: In real life, we know during periods of history there’ve been ups and downs. The nice thing when you’re using a market safe annuity, there are only ups.

Dick: That’s right. We’ve seen times when market safe annuities have really done better than the stock market but we’re not, we never think that you should look for that or expect that. I mean, just to throw a number out there… historically, based on the Wharton Study and some other studies out there, somewhere in that four to six percent range would maybe be realistic; the six percent maybe a little high and the four percent might be a little low.

Eric: It’s using an annuity that is basically geared towards what you’re wanting to accomplish. There are annuities that to do growth better, and there are annuities that do income better, and usually they’re not both the same annuity.

Dick: Yes. You need to ladder them, use them for different portions of your portfolio. And we’re going to step this up now, and try to move it along because we’ve got a bunch of material to get in here.

Eric: So, do you want to look at the estate advantages?

Dick: I think yes.

Eric: If you look at somebody who’s basically planning for the next generation, there are some advantages that market safe annuities have for passing money to heirs.

Dick: A big one is going around probate. So many folks think how can they get this money to my kids and they don’t necessarily want to set up a living trust or they have a simple will but they don’t want that to go through probate. They want certain money to just be able to get right to their children or their heirs and it goes right around probate which is a huge advantage.

Eric: Right and what we’re talking about is taking the cash accumulation account value, whatever is left there, it just goes on right to your beneficiaries.

Dick: Right. Another misconception about annuities in general…

Eric: The insurance company keeps all your money

Dick: Yes. they’re going to keep it all and there’s going be nothing left, but that’s not true. Nowadays, there’s a lot of exceptions to that.

Eric: Now we can design it that way if you like. Ha-ha

Dick: The other thing is.. folks a lot of times you think in terms of that money going to their heirs and it’s still in the surrender period and that their children will have to pay the penalty and the surrenders; in almost all cases now when someone passes and their money goes on to the children, it all goes with no penalties and no surrenders. So the full cash account value goes on.

Eric: And you’ve got the ability if it’s an IRA… to maintain that tax deferral aspect.

Dick: Right, if it’s a traditional IRA it’s going to maintain tax deferral. And what’s really cool is if it’s a Roth IRA, and we set a lot of those up, then its tax free at to the next generation and that’s huge.

Eric: Yes.

Dick: Now, let’s talk about liquidity.

Eric: The money, show me the money.

Dick: How do I get to it?

Eric: That’s right. If you’ve got an annuity are there some limits before we take cash out in the surrender period?

Dick: There are but the first thing we throw out there as a plus is majority control. So let’s explain that.

Eric: Alright. You put your money in, six months later you change your mind.

Dick: Well, you may have a bonus. The insurance companies going to want that bonus back. They’re not going to give you free money without you leaving it there for some period of time. But then as far as your actual principal, you may lose 10 percent of that.

Eric: And that’s kind of a typical first year penalty that we see out there…

Dick: But you’re going to control ninety percent of your money and if that annuity is properly designed – that annuity strategy, and correct retirement planning is done; that’s a very very rare exception that anyone would ever do something like that.

Eric And I always laugh… 10 percent sounds like a big surrender number but if you compare it to a market correction that dropped ten percent…

Dick: They call it a correction! That’s not a recession, that’s not a crises… that’s a correction!

Eric: So, you maintain majority control, in other words you can control the correction if you need too.

Dick: That’s right.

Eric: And then you have access to usually a portion of those dollars which are penalty-free. You can get in and get a scoop of it out usually about 10 percent.

Dick: And then as far as an income stream… that’s the beauty of the annuity… that’s why we use an annuity in a lot of cases not just for growth; as you want that income, you have got liquidity… that income for life…

Eric: Which is what everybody wants typically from core annuities. You know you’ve got the lifetime income or you can structure it; typically you can annuitize it for life or so it pays out over five years or ten years. The flexibility and those options are typically available with market safe annuities.

Dick: Right. With market safe annuities there are some risk advantages; there’s quite a few actually, let’s hit on a few of them.

Eric: Well, the biggy there is to principal.

Dick: It is… and to gains. So it is not just the money you put in, but any money that’s made along the way…

Eric: So, I moved up… and I don’t have to risk whatever I’ve made?

Dick: No. You’re going to gain it and you’re going to retain it.

Eric: Gaining and retaining…. that kind of a catchy little…

Dick: One of the things that I like is no bond risk of…

Eric: I don’t like bond risk so you can have it. I do like to not have any bond risk. And unfortunately, a lot of people, when you’re constructing a risk-based portfolio with some in stocks, some in bonds…

Dick: The bonds are the safety portion of your portfolio.

Eric: Sure they are…

Dick: But you have to read the prospectus, closely anyway…

Eric You might be… I’m not even going to suggest the possibility of a bond bubble because that…

Dick: And interest rates rising pushing their bond yields down. This is what’s so great about annuities… is you actually transfer that bond risk to a third party.

Eric: Right and I like it in the sense that you a transfer all the investment risk basically to the insurance company for a contractual **guarantee.

Dick: Right. Exactly. We’ve already touch a little bit on the longevity risk aspect but again I can’t overstate that folks are living longer. It is very possible to run out of money in retirement.

Eric: And I jokingly say that if they could generate a pill that makes us live for another fifty to a hundred years, well guess what? You’ve got a contractual **guarantee paid over that one hundred years…

Dick: You win.

Eric: So what a great deal to have that in place.

Dick: Eric, let’s get to these disadvantages. Some of them are kind of obvious but lets just state them… half a dozen of them in here.

Eric: Well, how long are the contracts? You’re committing yourself typically for a period that’s going to have a surrender applied to your money if you had to go and get it.

Dick: You know we’ve seen these surrenders anywhere from five years on the real low side and fifteen to twenty years on the high side,but I would say that the average market safe annuity out there is somewhere in that ten year range.

Eric: Right around the ten years. So you are committing yourself to 10 years. Now most retirement plans are usually much longer than that but if I talk about that, it’s no longer a disadvantage

Dick: That’s true.

Eric: Limited liquidity…. We’ve talked about majority control.

Dick: Yes.

Eric: Well, that means that you don’t have a hundred percent access.

Dick: It’s not like putting your money in a money-market or a bank savings account where you can just go down and pull money out anytime you want, but there’s other reasons why you set it up long-term.

Eric: Right. Now, if the economy is going to get really heated up and a lot of people are going to be making lots and lots of money in the market, if that happens, you may not get to participate fully…

Dick: You’re going to maybe give up some potential gains in a trade off for the security of your annuity.

Eric: So for the safety of your trade off is you may have to settle for triple-digit gains or you may get double digit. Ha-ha

Dick: You have to know that when you set up an annuity that you are going to limit your you’re upside potential.

Eric: But no downside…

Dick: You’re getting into it for safety…

Eric: We don’t have FDIC insurance….

Dick: And to some folks that matters quite a bit. They like that bank security and…

Eric: They want the federal governments backing.

Dick: They have to get that banks interest earnings too.

Eric: They may want the federal governments insurance protection too. The claims-paying ability of the insurance company is the criteria typically used when your selecting an insurance company…

Dick: So?

Eric: How do you choose?

Dick: The higher ratings of companies are very important and that is what you have to realize and that is a certain risk that’s taken.

Eric: Right, you’re actually relying on that company to provide that **guarantee. And then the last one is probably the biggest thing we hear about when we talk about annuities… and that’s that dirty little three-letter word…

Dick: Fees.

Eric: When we have fees associated with annuities, it is typically that you’re paying for a benefit like a lifetime income rider or a bonus. There’s usually something extra that you’re paying.

Dick: You have to make sure that a fee is relevant… that it fits your priorities.. that it accomplishes your goals. But you also have to realize that it is maybe a disadvantage and you have to compare that to other products that have or may have no fee, that type of a thing, to make sure that it’s relevant.

Eric: So you could have an expense taken out of an account to pay for those benefits.

Dick: Well, Eric, I feel like we’ve pretty fairly covered the advantages and disadvantages, and I think that what we really want to say is that market safe annuities can really set up, more importantly, a market safe retirement and that it’s a great way to really secure your retirement from market losses.

**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. Annuities are not FDIC insured and it is possible to lose money. Annuities are insurance products that require a premium to be paid for purchase. Annuities do not accept or receive deposits and are not to be confused with bank issued financial instruments.

*Retirement Planning and annuity purchase assistance may be provided by Eric Judy or by referral to a recommended, experienced, Fiduciary Investment Advisor in helping Annuity Guys website visitors. Dick Van Dyke retired from his Investment Advisory Practice in 2012 to focus on this Annuity Guys Website. He still maintains his insurance license and assists his current clients. Annuity Guys' recommended Fiduciary Financial Planners are required to be properly licensed in assisting clients with their annuity and retirement planning needs. (Due diligence as a client is still always necessary when working with any advisor to check their current standing.)

Site Terms & Disclosure

  1. All annuity tools, videos or information visible on Annuity Guys website pages, television, or other media are for educational and conceptual purposes only.
  2. Annuity tools, videos or information are not to be considered investment advice, insurance recommendations, tax or legal advice.
  3. It is recommended that site visitors should work with licensed professionals for individualized advice before making any important or final financial decisions on what is best for his or her situation.
  4. Website comments are not considered investor testimonials those shown only relate to an insurance agent referral service, customer service, or satisfaction with the purchase of insurance products and are never based on any investment or securities advice or investment or securities performance.
  5. Please be aware that your feedback and compliments may be shared with our visitors or those that may be interested in our services we will never give out your full name or full address or phone number without your permission. By sending us your feedback & comments you agree to allow us full use in sharing your comments with others in public forums. Thank you for sharing.
  6. Media logos are not any type of endorsement, they only imply that one or more of the Annuity Guys have written for, been quoted by, or appeared on the listed news outlet, broadcast or cable channels, or branded programs for non-advertising and/or advertising purposes, to offer educational and conceptual information about retirement issues incuding annuities.
  7. Income is guaranteed by annuitization or income riders that may have additional costs or fees.
  8. http://www.annuityguys.net & http://www.annuityguys.com forward to http://annuityguys.org. - Further all disclosures and information are to be considered as one and the same for any and all URL forwards, and these same disclosures and information also apply to all YouTube videos featuring Dick & Eric where ever they are viewed.
  9. MarketFree™ Annuity Definition: Any fixed annuity or portfolio of fixed annuities that protects principal / premium and growth by remaining market risk free.
  10. Market Free™ (annuities, retirements and portfolios) refer to the use of fixed insurance products with minimum guarantees that have no market risk to principal and are not investments in securities.
  11. Market Gains are a calculation used to determine interest earned as a result of an increasing market related index limited by various factors in the annuity contract. These can vary with each annuity and issuing insurance company.
  12. Premium is the correct term for money placed into annuities principal is used as a universal term that describes the cash value of any asset.
  13. Interest Earned is the correct term to describe Market Free™ Annuity Growth; Market Gains, Returns, Growth and other generally used terms only refer to actual Interest Earned
  14. Market Free™ Annuities are fixed insurance products and only require an insurance license in order to sell these products; they are not securities investments and do not require a securities license.
  15. No Loss only pertains to market downturns and not if losses are incurred due to early withdrawal penalties or other fees for additional insurance benefits.
  16. Annuities typically have surrender periods where early or excessive withdrawals may result in a surrender cost.
  17. Market Free™ Annuities may or may not have a bonus. Some bonus products have fees or lower interest crediting and when surrendered early the bonus or part of the bonus may be forfeited as part of the surrender process which is determined by each annuity contract.
  18. MarketFree™ Annuities are not FDIC Insured and are not guaranteed by any Government Agency.
  19. Annuities are not Federal Deposit Insurance Corporation (FDIC) insured and their guarantees are based on the claims paying ability of the issuing insurance company.
  20. State Insurance Guarantee Associations (SIGA) vary in coverage with each state and are not to be confused with FDIC which has the backing of the federal government.
  21. Annuity Guys website is not affiliated with or endorsed by the Social Security Administration.
  22. *"Best” refers only to the opinion of Dick, the Annuity Guys site author; or the opinion of Dick & Eric in videos and is not considered best for all individuals.
  23. *"APO” refers only to the Annual Pay-Out of annuities in the guaranteed lifetime income phase. *APO is NOT an annual yield or an annual rate of interest.
  24. AnnuityRateWatch.com, is only a linked to subscription service, which is not affiliated with AnnuityGuys.com, it supplies and updates all Annuity Rates, Features Ratings, Fees and Riders. AnnuityRateWatch.com's information is available in the public domain and accuracy is not verified or guaranteed since this type of information is always subject to change.
  25. Dick helps site visitors when help is requested. Dick may receive a referral fee as compensation from an advisor for a prospective client referral. This helps compensate Dick for time spent assisting site visitors and maintaining this educational website.
  26. Eric Judy is both insurance licensed and securities licensed. Eric offers securities as an investment adviser representative through Client One Securities, LLC.
  27. Eric purchases prospective client referrals from Annuity Guys Ltd. and may be compensated by commission for helping prospective clients purchase annuities. Eric may also recommend these prospective clients to an annuity advisor and earn a referral fee or a referral commission split.
  28. Vetted annuity advisors refers to advisors that are insurance licensed and recommended based on referral experience from satisfied clients.
  29. Any recommendation of an advisor is only one aspect of any due diligence process. Each site visitor must accept full individual responsibility for choosing a licensed insurance agent/advisor.
  30. In the event that a recommended licensed advisor/agent is not considered satisfactory, Eric will make reasonable efforts to recommend other advisors one at a time in an attempt to satisfy a site visitors planning or purchasing needs.
  31. Dick is the http://annuityguys.org website author and editor, Annuity Guys Ltd. is the website owner; Eric is a guest video commentator. Videos gathered from other public domain sources may also be used for educational and conceptual purposes.
  32. There is NO COST to site visitors when they are given an advisor referral or recommendation.
  33. By giving the Annuity Guys your contact information such as email, phone number, address and etc. you are giving your permission to be contacted or sent additional relevant information about annuities, retirement and related financial information. Annuity Guys has a NO SPAM policy.
  34. Accuracy of website information is strived for but is not guaranteed.
  35. Freedom from virus or malware is strived for but is not guaranteed. Website visitors accept any and all risk associated with damage to any computer for any reason when using this website and hold this website harmless from any liability.
  36. Use this website like the vast majority of websites at your own risk. No risk or liability of any type are accepted by any business entity or any of the information providers for this website.

Do Annuities Create the Highest Income?

Which of these two statements about retirement income do you find more appealing?

  1. My retirement income is contractually **guaranteed for success.
  2. My retirement income has a high potential of success.

If you opt for statement one, you will have a predisposition toward the safety and security provided for by annuities. Conversely, if you prefer a little risk in your life, you will have an inclination toward statement two  which is typically invested into a mix of different assets including stocks and bonds.

Video: Watch as the Annuity Guys® compare which is best – a **guarantee or higher potential income.

**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.

Annuities do not **guarantee the highest income levels; they **guarantee a lifetime of income regardless of stock market results. In a prior video, we highlighted the study done by Wade Pfau, a professor at American College where he determined that retirees greatest chance for a successful income in retirement came from a blend of annuities and equities. He has been cited as emphasizing the strength that annuities provide in their ability to safely cover the foundational income need for retirees.

As Annuity Guys®, we know firsthand the benefits and peace of mind that clients enjoy when they know that their foundational income need is **guaranteed. Structuring a retirement portfolio to provide the highest level of secure and **guaranteed success should be goal number one for both clients and advisors.

Retirement Income Summit 2013 Why the 4 percent rule shouldn’t be a rule

Two choices: Probability-based or safety-first and both require open-mindedness from advisers

In the debate over whether it is better to base a retirement income withdrawal rate on predictable historical returns or one that focuses on basic retirement needs, it appears that the jury is still out.

“Do you want to focus on the probability of failure or the magnitude of failure?” said Wade Pfau, associate professor of economics at the National Graduate Institute for Policy Studies.

Mr. Pfau, who has championed the conversation over new ways to manage a retirement income portfolio, presented his food for thought yesterday in Chicago at the InvestmentNews Retirement Income Summit.

The two schools of thought, as he explained them, include a “probability-based” approach of establishing a 4% withdrawal rate, and the “safety-first” approach that involves taking defensive measures to ensure that basic retirement needs are met.

The investment approach for the probability-based approach, for example, relies on systematic withdrawals and typically applies a total-return perspective.

In the safety-first approach, by contrast, the portfolio assets are matched to goals, and lifetime spending potential is the focus, as opposed to maximizing wealth.

In a model arranged as a pyramid, the bottom layer in the safety-first approach is dedicated to essential needs, followed by a contingency-fund layer, discretionary-expenses layer and finally a legacy fund at the top…. [Read More from Investment News]

If you want to see the article that raised Eric’s ire, here is the link to CNN/Money.

Helpful Retirement & Annuity Calculators

Our Most Advanced Retirement Income Calculator - Free

 

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.



Get Two Helpful DVDs & Our Library Edition - Annuity Reference Book


Based on survey feedback from advisor recommendations we made to our site visitors, we eliminated about two-hundred local advisors and now only recommend about six that we consider highly qualified Annuity Guys' Advisors on our national stage. Local advisors continually ask us to recommend them and they offer to pay us large fees for our referrals. However, our reputation and future business is driven only by satisfied website visitors. So, unfortunately we've had to tell the vast majority of local advisors no, since we changed our business model four years ago. At that time we stopped trying to satisfy everyone and instead, we now primarily work with individuals that are comfortable leveraging today's internet technology to their fullest advantage by working with a select group of experienced and knowledgeable Annuity Guys' Planners.


Priority Mail - Shipping is Free Our Gift to You


After confirming your request for help and shipping address by phone, we will immediately send your FREE personally signed Library Edition of our popular Annuity Reference Book "The New Retirement" plus Two Fact-Filled DVDs!

Have a chat with Dick or Eric. "We will help you in determining which annuities, if any, might be best for you."


Speak to an *Annuity Guy's Vetted --Fiduciary Financial Planner-- "For Your Retirement's Sake"


Confidential, Secure, No Spam




“I wanted to thank you for your annuity guys advisor referral. He is a perfect match for us... If there is ever anything I can do for you please let me know. Thanks again and take care.”

John in PA

“Been so busy I haven't had the time to write and say thanks for the referral. She is awesome ... Thank you for your guidance.”

Alex in TX

“Dick, Thank you again for your referral. I am indebted to you for all your support ... ”

Jack in CA


Selecting the Best Annuity & Retirement Income Advisor

Are you willing to work with an Annuity Guys' retirement and annuity advisor based on their experience and expertise as a first priority rather than being limited by a local or regional area? The good news is that technology has forever eliminated our geographical limitations and leveled the playing field for everyone! As a result of today's technological advances, all of us can now work confidently with experts in any field including personal finance. We are no longer confined by regional or local boundaries limiting our choices and ultimate success. A high quality Annuity Guys® advisor is now as close as a click or phone call away.

Video:"Choose a National or Local Advisor"?
"There is no room for trial and error when it comes to choosing MarketFree® Annuities or a Successful Retirement Planner."
When you think about it, your money is almost always in some other state with a custodian; whether invested in the market or with an annuity insurance company, the advisors competence is primarily needed when positioning your money initially. So working with a specialized expert in a financial discipline like annuities or retirement planning is imperative. There are no undo buttons in retirement! Once the annuity or annuities get set up correctly, it is customary and more efficient for annuity owners to benefit by having direct access to the annuity issuer instead of having to go through the agent. And, of course any reputable advisor, local or national, is more than willing to assist their clients if needed after annuities are implemented.
Video:"Why These 3 Types of Annuity Advisors are Not Created Equal"
"There are no undo buttons in retirement so it is vitally important that you do it right the first time!"

We are fortunate to have a select few who we believe are truly the highest qualified annuity and retirement advisors out of about two hundred licensed insurance agents that we eliminated. Your survey feedback is what helps us make these tough decisions. The Annuity Guys advisors have an independent financial practice, specializing in annuities and retirement planning, which helps ensure that you are given the best annuity options available for your retirement planning.

Video: "How Much of Your Money Should You Consider Placing into Annuities"?
"It takes an experienced expert to know how to structure annuities for income, inflation, growth, return of principal, and tax advantage."

"Anyone can sell you an annuity; however, it takes a truly qualified and experienced advisor to know how to structure annuities for income, inflation, growth, return of principal, and tax advantage. Typically, there is not just one annuity that can accomplish all of these objectives. It is how an annuity advisor structures multiple annuities in balancing your total portfolio that makes it possible to achieve your most important retirement objectives."

Video: "How to Choose a Great retirement Advisor"?

Why Searching for the Best Annuities on Your Own Can be so Frustrating...

Almost everyone nowadays turns to the internet for answers on everything - from buying new widgets to researching just about everything under the sun; and finding the best annuity is no exception!At first, it may seem that researching annuities will be straightforward but the more time you spend researching them, the more frustrating it can be. Why is this? First of all, it does not take long to realize that gimmicks abound - such as warnings and alerts from salesmen who just want your attention so they can sell you an annuity or the "too good to be true" claims of 8% to 14% **guaranteed interest and of course the claim that you can get the full market upside with no downside risk! If you have done any research you have heard all of these claims in advertising which are mostly half truths and not fully explained.So how can you find the best annuities on the internet? The truth is... you can't! And what is even more frustrating is all the conflicting points of view from so called experts. There are well over 6,000 different annuities - all designed for different reasons, so is it any wonder that the deck is stacked against the average researcher or do-it-yourselfer. Add to that the fact that annuities pay high enough commissions to attract a plethora of both good and bad agents. This does not make annuities good or bad; they are simply a financial tool that truly benefit those who use them correctly.How can you find the best annuities for your unique situation?
  • Use the internet cautiously;
  • Work with a vetted and experienced annuity specialist;
  • Do not settle for that one dubious best plan or annuity compare multiple Outcome Based Plans to decide on the one that is truly best for you;
  • Be keenly aware of scare tactics and hyperbole - avoid those advisors and websites;
  • Avoid websites that are focused on rushing free reports, rates and quotes to get your contact information they are rushing you to speak with them, instead, take your time and choose someone you are more comfortable with that works on your time-table;
  • Know the Five Vital Factors (listed above) that an experienced annuity specialist must answer before helping you select the best annuities for your situation;
  • Watch this telling video "Avoid Annuity Gimmicks, Amateurs and Charlatans"...


Video: "Avoiding Gimmicks, Scams & Charlatans"

Video Transcription:

Dick: Hi, I’m Dick.

Eric: And I’m Eric and we’re the annuity guys. Dick, do annuities create the highest level of income and if you said yes, I imagine you’ve got some explaining to do Dick.

Dick: Hey, Eric that’s a lot of questions. I would say that the correct answer to that is no.Annuities do not produce the highest income if we’re talking about potential.

Eric: So are we talking about withdrawal rates? We should be specific here.How much money you can withdraw out of your retirement portfolio?

Dick: Typically, we’re looking at in the a financial world of a portfolio; maybe stocks and bonds. And this type of a portfolio, there’s a prudent man planning rule that use and says – “you shouldn’t pull out more than somewhere in the neighborhood at about four percent out of your portfolio – and that’s been a standing rule for a long time. But recently, there’s been more what?

Eric: Even our Fed come out and said “maybe you got to go down to three and a half as we are in the middle the financial crisis” that we haven’t heard some people say “maybe three percent is even better yet”. Of course zero would be the best yetbut that doesn’t give you a whole lot to eat with.

Dick: No exactly and so getting back to “can annuities produce the highest income?” I think if we’re talking about safety and **guarantees, and a likelihood up the highest income, yes. The answer is yes.

Eric: Well, there’s even been studies out there that are proven that if you would perhaps replace your bond portfolio holdings in your portfolio with annuities, your likelihood of making at thirty years in retirement, significantly…

Dick: It goes up dramatically, yes. And one of the studies in particular that just comes to mind was an Ibbotson study that said that if you took the same percentages of stocks and bonds and you replace your bonds with annuities, the likelihood with the stocks and bonds of going thirty years out and still being able to supply that income up to thirty years, that you had a 77 percent chance of accomplishing that. But if you use annuities for the fifty percent instead of the bonds, you had a 99 percent chance.

Eric: Well you know… so four out of five versus almost five out of five; you just hope you’re not the one fifth that does not make it.

Dick: Right, right. That’s using Monte Carlo type simulations and it doesn’t really take into account the fact that it really could go dramatically the other way; that there’s no **guarantees here and if you did actually lose your entire portfolio of stocks and bonds, you would have no income of any kind. Where if you lost your portfolio of stocks when you had annuities as the foundation, you still have an income.

Eric: The annuity income continues for the rest of your life because it’s safe.

Dick: Right. So you could potentially cut back on your standard of living a little bit and you go all right on with an income.

Eric: And I should say one other things that really raise my ire – I’ll be politically correct here – I’m reading through CNN Money last couple days and they asked the question about saving or making your retirement last in your nineties,and their expert doesn’t mention annuities at all.

Dick: Hmmmmm…

Eric: So I wonder where this guy works? In stocks and bonds.. and he keeps on saying, well… and his best advice was “if you can do 50/50 in stocks and bonds, there’s an 80 percent probability that you’re going to make it through those thirty-year.

Dick: Well, this is where folks have to do so a little wisdom and realize that there’s a lot of bias out there in financial articles; and it’s not all annuities, it’s not all securities. It’s the mix that works, it’s hitting that balance. And then what we really need to talk about also, I think, Eric, is what way do we bring these annuities into the portfolio? What are some other methods and types of annuities that you maybe bring into the portfolio as this other a foundational position?

Eric: We’ve talked about laddering a lot. I think.

Dick: Yes.

Eric: I really like to structure retirement portfolios with different runs that get turned on a different time so that there are controls for inflation. Obviously, the strength in annuities is the **guarantee. So you got . Even if you set them out into the future where you can turn them on in the future if you need additional income, it’s another way of getting additional versus maybe having to rely on the stock market performance for that future bumps in income.

Dick: So it could be as simple as choosing one annuity with an income rider or one immediate annuity as that portion of the portfolio, but really the better way is to use a more advanced strategy our way of structuring a annuities so that their staged at different points along the way. You may start out with an immediate annuity or an annuity that you actually turn on right away with an income rider, and then stage various annuities along the way.

Eric: Take advantage of the strength of an individual annuity rather than trying to find out “one size fits all” style annuity.

Dick: Well, a lot of folks are concerned about that portion of their money that they would like to see the principal maintained. So that’s another aspect of that annuity portion of the portfolio what we would call the sub- portfolio, the annuity portfolio; and how that’s designed. Again, that may be of something we want to get in in another…

Eric: Regenerating a principal…

Dick: So, Eric let me ask you.. in your opinion, can annuities produce the highest income?

Eric: Guaranteed! I spoke Latin words.

Dick: But it is… that’s the point of annuities. It’s secure, it is **guaranteed and if we’re looking for potential, probably the answer is No; but if you’re looking for secure, **guarantee, safety, than the annuities can produce very realistically the highest income.
**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. Annuities are not FDIC insured and it is possible to lose money. Annuities are insurance products that require a premium to be paid for purchase. Annuities do not accept or receive deposits and are not to be confused with bank issued financial instruments.

*Retirement Planning and annuity purchase assistance may be provided by Eric Judy or by referral to a recommended, experienced, Fiduciary Investment Advisor in helping Annuity Guys website visitors. Dick Van Dyke retired from his Investment Advisory Practice in 2012 to focus on this Annuity Guys Website. He still maintains his insurance license and assists his current clients. Annuity Guys' recommended Fiduciary Financial Planners are required to be properly licensed in assisting clients with their annuity and retirement planning needs. (Due diligence as a client is still always necessary when working with any advisor to check their current standing.)

Site Terms & Disclosure

  1. All annuity tools, videos or information visible on Annuity Guys website pages, television, or other media are for educational and conceptual purposes only.
  2. Annuity tools, videos or information are not to be considered investment advice, insurance recommendations, tax or legal advice.
  3. It is recommended that site visitors should work with licensed professionals for individualized advice before making any important or final financial decisions on what is best for his or her situation.
  4. Website comments are not considered investor testimonials those shown only relate to an insurance agent referral service, customer service, or satisfaction with the purchase of insurance products and are never based on any investment or securities advice or investment or securities performance.
  5. Please be aware that your feedback and compliments may be shared with our visitors or those that may be interested in our services we will never give out your full name or full address or phone number without your permission. By sending us your feedback & comments you agree to allow us full use in sharing your comments with others in public forums. Thank you for sharing.
  6. Media logos are not any type of endorsement, they only imply that one or more of the Annuity Guys have written for, been quoted by, or appeared on the listed news outlet, broadcast or cable channels, or branded programs for non-advertising and/or advertising purposes, to offer educational and conceptual information about retirement issues incuding annuities.
  7. Income is guaranteed by annuitization or income riders that may have additional costs or fees.
  8. http://www.annuityguys.net & http://www.annuityguys.com forward to http://annuityguys.org. - Further all disclosures and information are to be considered as one and the same for any and all URL forwards, and these same disclosures and information also apply to all YouTube videos featuring Dick & Eric where ever they are viewed.
  9. MarketFree™ Annuity Definition: Any fixed annuity or portfolio of fixed annuities that protects principal / premium and growth by remaining market risk free.
  10. Market Free™ (annuities, retirements and portfolios) refer to the use of fixed insurance products with minimum guarantees that have no market risk to principal and are not investments in securities.
  11. Market Gains are a calculation used to determine interest earned as a result of an increasing market related index limited by various factors in the annuity contract. These can vary with each annuity and issuing insurance company.
  12. Premium is the correct term for money placed into annuities principal is used as a universal term that describes the cash value of any asset.
  13. Interest Earned is the correct term to describe Market Free™ Annuity Growth; Market Gains, Returns, Growth and other generally used terms only refer to actual Interest Earned
  14. Market Free™ Annuities are fixed insurance products and only require an insurance license in order to sell these products; they are not securities investments and do not require a securities license.
  15. No Loss only pertains to market downturns and not if losses are incurred due to early withdrawal penalties or other fees for additional insurance benefits.
  16. Annuities typically have surrender periods where early or excessive withdrawals may result in a surrender cost.
  17. Market Free™ Annuities may or may not have a bonus. Some bonus products have fees or lower interest crediting and when surrendered early the bonus or part of the bonus may be forfeited as part of the surrender process which is determined by each annuity contract.
  18. MarketFree™ Annuities are not FDIC Insured and are not guaranteed by any Government Agency.
  19. Annuities are not Federal Deposit Insurance Corporation (FDIC) insured and their guarantees are based on the claims paying ability of the issuing insurance company.
  20. State Insurance Guarantee Associations (SIGA) vary in coverage with each state and are not to be confused with FDIC which has the backing of the federal government.
  21. Annuity Guys website is not affiliated with or endorsed by the Social Security Administration.
  22. *"Best” refers only to the opinion of Dick, the Annuity Guys site author; or the opinion of Dick & Eric in videos and is not considered best for all individuals.
  23. *"APO” refers only to the Annual Pay-Out of annuities in the guaranteed lifetime income phase. *APO is NOT an annual yield or an annual rate of interest.
  24. AnnuityRateWatch.com, is only a linked to subscription service, which is not affiliated with AnnuityGuys.com, it supplies and updates all Annuity Rates, Features Ratings, Fees and Riders. AnnuityRateWatch.com's information is available in the public domain and accuracy is not verified or guaranteed since this type of information is always subject to change.
  25. Dick helps site visitors when help is requested. Dick may receive a referral fee as compensation from an advisor for a prospective client referral. This helps compensate Dick for time spent assisting site visitors and maintaining this educational website.
  26. Eric Judy is both insurance licensed and securities licensed. Eric offers securities as an investment adviser representative through Client One Securities, LLC.
  27. Eric purchases prospective client referrals from Annuity Guys Ltd. and may be compensated by commission for helping prospective clients purchase annuities. Eric may also recommend these prospective clients to an annuity advisor and earn a referral fee or a referral commission split.
  28. Vetted annuity advisors refers to advisors that are insurance licensed and recommended based on referral experience from satisfied clients.
  29. Any recommendation of an advisor is only one aspect of any due diligence process. Each site visitor must accept full individual responsibility for choosing a licensed insurance agent/advisor.
  30. In the event that a recommended licensed advisor/agent is not considered satisfactory, Eric will make reasonable efforts to recommend other advisors one at a time in an attempt to satisfy a site visitors planning or purchasing needs.
  31. Dick is the http://annuityguys.org website author and editor, Annuity Guys Ltd. is the website owner; Eric is a guest video commentator. Videos gathered from other public domain sources may also be used for educational and conceptual purposes.
  32. There is NO COST to site visitors when they are given an advisor referral or recommendation.
  33. By giving the Annuity Guys your contact information such as email, phone number, address and etc. you are giving your permission to be contacted or sent additional relevant information about annuities, retirement and related financial information. Annuity Guys has a NO SPAM policy.
  34. Accuracy of website information is strived for but is not guaranteed.
  35. Freedom from virus or malware is strived for but is not guaranteed. Website visitors accept any and all risk associated with damage to any computer for any reason when using this website and hold this website harmless from any liability.
  36. Use this website like the vast majority of websites at your own risk. No risk or liability of any type are accepted by any business entity or any of the information providers for this website.

Sell in May and Go Away or Buy Annuities?

Life is full of profound statements and sayings that stick in our minds. For investors and brokers, the saying “sell in May and go away” has held some degree of truth for those who are looking to avoid the volatility and declines of the equity markets from May through October.

This topic seems to have some momentum among the popular investment media advisors where we have seen no less than a dozen Wall Street insiders telling everyone who will listen…[continued below video]

Video: Watch as Annuity Guys, Dick and Eric, discuss as to whether the best way is to sell in May.

**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]…that this is not the year to sell in May. The question is… who do you believe the historical adage or the so called experts of our day? Or, is there a third option for those looking to avoid the volatile days and declines of summer by positioning some of their assets into a holding where they can take the risk of loss due to negative investment performance off the table? Using fixed or fixed index annuities as an alternative asset class is becoming more popular with people looking to mitigate the risk of potentially decreasing bond valuations based on rising interest rates and also to seek stock market protections from the current bull market possibly screeching to a halt.

Annuities may not be the right choice for everyone; but for those in or nearing retirement, they are certainly worthy of consideration. Annuities are the cornerstone of safe income options for many retirees but also offer some safe market upside growth potential to consider when evaluating whether to sell stocks in May and go away or buy annuities in May and go play!

[continued]

For stocks, the best time to sell and go away starts today

CHAPEL HILL, N.C. (MarketWatch) — Should you sell in April and go away?

It’s an odd question, I admit. Widespread talk of selling usually doesn’t begin until late April, when investors each year are reminded of the famous seasonal pattern “sell in May and go away.”

But it’s precisely because it is so well-known that some followers of this seasonal tendency wonder if they should act sooner rather than later. Waiting until May Day runs the risk of selling at the same time that a large number of other investors are doing the same.

Fortunately, we have real-world data on two attempts to get a jump start on the “sell in May and go away” pattern. The first is the “Almanac Investor Newsletter,” edited by Jeffrey Hirsch, and the other is Sy Harding’s “Street Smart Report.”

Both pursue surprisingly similar modifications to this basic seasonal pattern. Each relies on a technical indicator known as MACD to pinpoint the precise day on which they enter and exit the market. (MACD is a short-term momentum indicator, standing for moving average convergence divergence.)

The Hulbert Financial Digest has track records for both market timers’ modifications of this seasonal pattern dating to mid-2002, nearly 13 years ago. The HFD calculates their returns on the assumption that, when they are invested in stocks, they earn the return of the Wilshire 5000 Index; otherwise they are assumed to be invested in 90-day Treasury bills.

As you can see from the accompanying table, a buy-and-hold strategy since mid-2002 has produced a 7.7% annualized return. Automatically going to cash every May Day and re-entering the market on Halloween would have done slightly better with a lot less risk — which is why it comes out well ahead of buying and holding on a risk-adjusted basis (as indicated by a higher Sharpe Ratio). [Read More at MarketWatch…]

Helpful Retirement & Annuity Calculators

Our Most Advanced Retirement Income Calculator - Free

 

 

Annuities: What Percentage Should Be in Your Retirement Portfolio?

The answer is 50% — want to know why we would say that?

It’s nice when empirical research validates something that we have observed for years with our clients.

Wade Pfau, a professor at American College who specializes in retirement income determined that based upon current market conditions a hypothetical couple ages 65 would have their best success for generating a four percent annual income by using a combination of…[continue reading below video]

Video: Dick and Eric discuss, if it is okay to say goodbye to the 3% to 4% Income Rule? and replace it with higher income **guarantees for life!

**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]…50% equities and 50% fixed annuities.

We typically do not espouse an exact percentage, but rather design our income plans to cover the foundational expenses with sources like social security, pensions and annuities. If you take care of the foundation your flexibility with additional assets is significantly enhanced.

Check out more on the Death of the 4% Rule.

Say Goodbye To the 4% Rule

By Kelly Greene | The Wall Street Journal – Mon, Mar 4, 2013

Can your nest egg last your whole lifetime? It’s getting tougher to tell.

Conventional wisdom says you can take 4% from your savings the first year of retirement, and then that amount plus more to account for inflation each year, without running out of money for at least three decades.

This so-called 4% rule was devised in the 1990s by California financial planner William Bengen and later refined by other retirement-planning academics. Mr. Bengen analyzed historical returns of stocks and bonds and found that portfolios with 60% of their holdings in large-company stocks and 40% in intermediate-term U.S. bonds could sustain withdrawal rates starting at 4.15%, and adjusted each year for inflation, for every 30-year span going back to 1926-55.

Well, it was beautiful while it lasted. In recent years, the 4% rule has been thrown into doubt, thanks to an unexpected hazard: the risk of a prolonged market rout the first two, or even three, years of your retirement. In other words, timing is everything. If your nest egg loses 25% of its value just as you start using it, the 4% may no longer hold, and the danger of running out of money increases.

If you had retired Jan. 1, 2000, with an initial 4% withdrawal rate and a portfolio of 55% stocks and 45% bonds rebalanced each month, with the first year’s withdrawal amount increased by 3% a year for inflation, your portfolio would have fallen by a third through 2010, according to investment firm T. Rowe Price Group. And you would be left with only a 29% chance of making it through three decades, the firm estimates.

That sort of scenario has left many baby boomers who are in the midst of retiring riddled with angst. “The mind-blowing aspect of retiring is all these years you’re accumulating and accumulating, and then you need to start drawing down, and you have no idea how to do that,” says Al Starzyk, a 66-year-old retired printing executive in Williamsburg, Va.

So, if you can’t safely withdraw at least 4% a year from a balanced portfolio of equity and bond funds, what do you do? Here are three alternative approaches that retirement specialists say may work better to ensure your money lasts as long as you do:

Use annuities instead of bonds

Pairing the most plain-vanilla type of annuity—called a single-premium immediate annuity—with stocks, retirees can generate income more safely and reliably than if they use bonds for that piece of their portfolio, says Wade Pfau, a professor who researches retirement income at the American College of Financial Services in Bryn Mawr, Pa.

To arrive at that conclusion, he plotted how 1,001 different product allocations might work for a 65-year-old married couple hoping to generate 4% annual income from their portfolio. [Read More…]
 

Can Annuities Help You Avoid the 2016 Crash!

Can Annuities Help You Avoid the 2016 Crash?… Absolutely!

If you think like many Americans and some economic experts that a crash is coming in 2016 to the equities market and you would like to move some of your assets to a safer place, fixed and fixed index annuities (FIA) could be a viable option for those investment dollars. Fixed annuities and FIAs have the ability to offer **guaranteed rates of growth that typically exceed…[continued below video]

Video: The Annuity Guys, Dick and Eric, discuss how annuities can protect you in a market downturn.

**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]… what you can find from any banking institution presently by two to six times their interest rate growth. Fixed index annuities allow for a participation in the upside of many equity indices without having investment risk from those indices should the equity market correct or even crash.

Many FIAs allow you to choose from a variety of growth options that allow you the flexibility of choosing a fixed interest growth rate in one year and the option of choosing index based growth for greater growth potential in another year. So, the majority of fixed index annuities provide for re-allocation annually based upon your individual preference or with some guidance from your advisor.

Should you take all of your money out of the equities market? For most people the answer is no. Historically the stock market has produced higher positive returns over the long haul… So as long as you have the time to recover from losses in a protracted downturn that will not impact your lifestyle or health, you may elect to keep money in the market and hopefully ride out the downturns. We are not fans of trying to time the market since repeated studies and most active management results have shown that it is virtually impossible to do so. However, we know that with fixed and fixed index annuities you no longer have to even try.  Since, you can get interest growth from a portion of a market index that is rising with NO market index downside risk.

Article from Seeking Alpha, January 7, 2016

Could This Be 2008 Again?

Summary

  • Investors are very nervous again, especially as they see another huge crash happening in China.
  • The current economic problems can be best observed in the energy and commodities markets, which have crashed.
  • However, the situation is very different from 2008, and this time central bankers will have no choice but to intervene before things get out of control.

People are starting to get nervous, especially when they are looking at another 7% crash in China. George Soros said it sounds like 2008 again. Of course, one day it will be the end of the world, at least financially, and many times there will be deep crises which will panic people so badly that they will feel like it is the end of the world. It is inevitable to have such episodes once in a while.

But can this time things get so bad that would be another end-of-world scenario like 2008? 2008 didn’t start well. 2016 hasn’t started well at all. If at least the start, or the first quarter, is to resemble 2008 then 2016 can have further to go, downwards (as can be seen in the chart of the S&P 500).

There are several worrying real issues out there to which we do not know what may be the outcome a few months from now. One is the economic and financial unraveling that seems to be going on in China. Another is the energy and commodities crash that seems to continue, at least for now. And what is actually most important is that asset valuations in some parts of the rich world are quite high, compared to historical levels, and can therefore easily fall to lower levels. […Read More at Seeking Alpha]

Helpful Retirement & Annuity Calculators

Our Most Advanced Retirement Income Calculator - Free

What is the Best Annuity?

Are you trying to figure out which annuity will offer the best way to grow your money and safely generate income that you can count on as long as retirement lasts (without depleting your initial principal) so you can reduce stress or even financial failure during retirement?

There are hundreds of insurance companies offering thousands of annuities — but how do you know what the best annuity is for you? It really is pretty simple. The best annuity is an annuity the helps to fulfill your financial objectives. However, don’t be surprised if your best retirement option is really a portfolio of financial offerings that also combines a few strategically selected annuities to meet your income and safe money goals.

Video: Watch as Dick and Eric discuss how to find that elusive best annuity.

**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.

As Annuity Guys®, we believe in the balanced utilization of annuities to accomplish our clients foundational retirement needs for safety, growth and income. We like retirements built upon a base of **guarantees – not probabilities. What is the best annuity to achieve that goal? In Annuity Guys® opinion, it is the annuity that satisfies the foundational need with the smallest allocation amount. It often times will require meeting with various expert advisors and planners; evaluating multiple scenarios to determine which plan best fits your needs.

It’s your retirement and you typically only get one shot to do it right. So don’t be pushed or cajoled into a decision that you’re unsure fits your objectives. Before you begin meeting with retirement planners or advisors, spend some time thinking about your income and retirement goals. If you don’t have an income or wealth transfer goal in mind, you will never accomplish it successfully and you will more than likely be disappointed with your results. Retirement portfolios often use annuities to achieve income goals by leveraging their growth with lifetime income **guarantees, yet retirees need to be specific with their needs so they do not over commit or come up short with this allocation.

Want even more information on picking the best annuity? Here is an article from AnnuityNews.com – on how advisors can assist their clients to solve their retirement income issues.

Four Steps To Selecting The Right Annuity

By Bill Martina

If you’re fairly new to the world of helping people prepare for retirement, here is something that may not be readily apparent. Financial professionals who offer a suite of diverse, well-structured annuity products that can be paired with optional lifetime income riders may be a boon to certain clients. In particular, the ideal clients for these annuity products are those who can benefit by shifting part of their product holdings from more traditional types of savings vehicles to income-producing vehicles. The process of determining which types of annuity products may be best suited to specific clients involves four primary steps.

We all know this, but let’s emphasize it: The first step in retirement planning or the sale of an annuity is to conduct a thorough assessment of the client’s current financial situation and potential future income needs. This assessment must be based on existing income, assets and expenses, as well as individual goals and circumstances. This first step also includes having the client estimate their projected expenses in retirement.

Then, you’ll want to calculate the client’s anticipated retirement income from all sources, including any part-time job; alimony; Social Security benefits; pension; 401(k) or other personal retirement plan; dividends from stocks, mutual fund^s, etc.; interest on savings accounts, bonds, certificates of deposit (CDs) and other financial instruments, and any other sources.

I’m not about to imply that all of those income sources should be removed from a client’s portfolio or that annuities should comprise more than an incremental part of any overall, balanced retirement program. However, today’s low-yielding vehicles may not be enough to help meet your clients’ needs. Now could be an opportune time to consider layering a single premium immediate income annuity (SPIA) or a single premium deferred income annuity (DIA) into a repositioned income strategy for the client.

I’ll focus more on SPIAs and DIAs in a moment, but meanwhile, let’s move to step three of the retirement planning process. At this stage, you’ll want to determine the potential income gap in the client’s retirement income: the difference between what he or she likely will have, compared to the anticipated need. Numerous income sources can be considered, but many financial service professionals recommend planning in such a way that the client will have access, during retirement, to 70 percent of their pre-retirement income.

This brings us to step four: determining potential ways to help meet the projected income gap. Millions of consumers have money socked away in mutual fund^s, bonds, CDs, etc. In today’s interest rate environment, these products pay relatively low interest and/or provide no growth or income **guarantees, yet they are perceived as relatively “safe.” (It is important to note that CDs are insured by the Federal Deposit Insurance Corp. up to certain limits and certain bonds may be considered more or less secure, depending upon the issuer and credit rating). It’s possible that some of this money may be utilized better if shifted to an SPIA or a DIA. Both SPIAs and DIAs are designed to produce a **guaranteed stream of income payments that can continue for life, depending on the option chosen: an SPIA, starting immediately, and a DIA, starting at some later, predetermined point in time. Other annuities, like indexed annuities, may have optional lifetime income riders that a client can elect to help secure more money for the future. […Read More from AnnuityNews.com]