If you are in your 20's or 30's it isn't such a big deal when the value of your stocks drops from month to month or even from year to year. But when you are 70 years old and retired, as little as a 5% stock market drop could seriously affect income and savings. Younger people have time to take more risk because they7 are still working and they have more time to recover from losses. But for those of us looking for a sure thing, Fixed Indexed Annuities are perfect.
When you purchase a Fixed Indexed Annuity you are getting peace of mind and security while avoiding the complexity and volatility of the stock market.
Great Addition to Your Retirement Plan
Whatever your personal retirement plan, adding a Fixed Indexed Annuity to you nest egg provides not just peace of mind and a sense of security but it can also act as a solid foundation for your retirement dreams. Perhaps you have always wanted to start your own business, purchase a rental property, volunteer for a charitable organization; you could do that if you were confident that your living expenses were secure. Wouldn't it be great to be free of uncertainties and be able to make these kinds of choices?
Here are three certainties to remember.
- The older you get the GREATER the chances of outliving your money.
- The stock market ALWAYS has ups and downs and you can't control that.
- Your Fixed Indexed Annuities continue to GROW and can pay you until you die (or live to be 120 years and 1 day).
Long Term Care Coverage
Long term care can be a big expense and those costs continue to increase. Many insurance companies used to sell long term care policies that helped pay those expenses for a limited period of time. Those costs become so high that most companies have stopped selling stand-alone long-term care policies. So, what do you do now?
The Fixed Indexed Annuity provides a solution. If you go into a care facility your annuity payment continues and some policies even provide an increased payment to help you with those expenses. And, unlike the old policies that had limited dollar ceilings or a fixed number of years they would pay, your Fixed Indexed Annuity continues to pay until you die (or reach 120 years and 1 day). We need to address the financial consequences of long-term care because statistics show that many will require this benefit.
What the Tycoon Financial Advisors Will Tell You
The big financial investment firms will tell you not to buy an annuity because of "nose bleed fees".
Remember, a Fixed Indexed Annuity is not a passbook savings account. Its purpose is to fund your retirement not the whims of everyday life.
So, by design you put a sum of money into the annuity and it grows over time and you use it to fund your retirement. But what happens in the case of a true emergency, such as the roof blows off your house? The Fixed Indexed Annuities I suggest allow you to take a 10% penalty free withdrawal every year (after the first year). Of course, this reduces the value of the annuity but it's your money and you can get it with no penalty.
But what happens if 4 or 5 years into your annuity Cousin Sallie comes along, persuades you she has a "better deal" and you decide you want all the money out of your annuity. That is called surrendering your policy and there would be a surrender charge. It could be as high as 10%, it could be lower. Every financial product has rules. For example, a Certificate of Deposit (CD) with a bank has a term such as 3 years or 5 years. IF you want your money before the end of the term, you pay a penalty (a fee). If you make an early withdrawal from a 401K or an IRA, you will be charged a penalty (a fee).
The same financial investment firms will tell you that the fees paid to the insurance agent cost too much. That is just not true. You don't pay me a fee. The insurance companies pay me as their cost of doing business and what I'm paid doesn't come out of your premium. Those financial investment firms do charge fees year in and year out whether you make money or lose money.
It really comes down to choose and risk. The big financial investment firms will tell you not to buy an annuity because you could earn more if you invested in the stock market; that is, if you invested correctly in the stock market. That is one kind of risk. Here's another kind of risk. What risk would you face in a market recession? Are you young enough to ride it out and recover? And, if you lose money do still have to pay the broker his fee?
A Fixed Indexed Annuity is an insurance product that allows you to capture some of the associated market growth but protects you from any down turn risk. The insurance company shoulders that risk instead of you because your hard-earned savings is no longer in a market. Let me show you how this works and how it can benefit you and your retirement.
If You Have Questions About Annuities
Do you want guaranteed income for life? Do you want to protect your savings? Do you want to pass money to your loved ones? Do you want to secure funds for long term care? A Fixed Indexed Annuity may be perfect for you. Call me. Let's talk about what you want and see if I can help you achieve your retirement dreams. Peace of mind could be just a phone call away.
Speaking of that, some of these big financial firms won't even take your phone call unless you have minimum of $500,000 to discuss. I don't have that rule. If protecting your hard-earned savings is important to you, it's important to me, also. Call me. Tell me how much you want to protect, and I will work to find a product that benefits you and helps you meet your retirement goals.