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Annuity Growth Rate Guarantees

Thursday, May 18th, 2017 and is filed under Annuity News, Financial Planning Tips, Retirement Income Annuities

Annuity Growth Rate GuaranteesSo far in our series on retirement annuities, we have discussed many aspects of annuities, especially the fixed index annuity. We have covered the four types of annuities, fixed index annuity basics, principal protection, and multiple annuity crediting methods including point to point, monthly sum, and monthly average. Next, in our series, we will discuss annuity growth rate guarantees.

Over the past several years we have seen the stock market go pretty much all over the map…everywhere from 50% downturns to record highs…and everywhere in between. And who knows where it’s going to go next?! Read More

Retirement Annuity Monthly Average Crediting Method

Wednesday, May 3rd, 2017 and is filed under Annuity News, Financial Planning Tips, Retirement Income Annuities, Uncategorized

Monthly Average Crediting Method for Fixed Index AnnuitiesAs we continue our series on retirement annuities, we will now explore another crediting method which is called monthly point to point, also known as monthly average crediting.

As a reminder, there are three types of market index crediting methods used in Fixed Index Annuities – Point to Point, Monthly Sum, and Monthly Average. Your contract may have variations of one, or all three available for you to choose from.

In monthly average crediting, the insurance company records the value of the index you’ve chosen to track once each month. This snapshot of the index is taken on the day-of-the-month your contract was issued. At the end of the contract year, they take an average of the monthly values, and then compare it against the index’s value seen at the beginning of the contract year. Read More

Inflation-Protected Annuity Q&A with Cathy DeWitt Dunn on U.S. News & World Report

Tuesday, April 25th, 2017 and is filed under Annuity News, Retirement Income Annuities, Uncategorized

Inflation Protected AnnuityWith people living longer and spending an average of 18 years in retirement, inflation has the potential to wreak havoc on your retirement plans unless precautions are taken.

Let’s say for illustration purposes, that your current monthly expenses are $3,000 a month. Did you know that in 10 short years, your monthly expense will top $4,000 a month based on a 3% annual inflation rate? In 18 years, that same $3,000 a month expenses will exceed a staggering $5,100 a month after adjusting for inflation. If you are one of the many who spend 25 years in retirement, your expenses will more than double, topping $6,200 after calculating for inflation. Read More

Retirement Annuity Crediting Methods – Monthly Sum

Monday, April 17th, 2017 and is filed under Annuity News, Financial Planning Tips, Retirement Income Annuities

Retirement Annuity Crediting Method - Monthly SumIn our series on retirement annuities, we have previously covered the four types of annuities, fixed index annuity basics, principal protection, and one of the types of annuity crediting methods – the point to point annuity crediting method. In this article, we will discuss another crediting method called monthly point to point, which is also known as monthly sum crediting. Read More

Point to Point Annuity Crediting Method

Wednesday, April 5th, 2017 and is filed under Annuity News, Retirement Income Annuities

The Point to Point Annuity Crediting Method ExplainedA question we hear quite often is, “How does a fixed index annuity make money?” That’s a great question because there are a lot of options available when it comes to how your Fixed Index Annuity will earn money. These options are called crediting methods.

In this article, we will focus our attention on the Point to Point crediting method for fixed index annuities. In upcoming posts, we will discuss the monthly sum and the monthly average crediting methods. Read More

Annuity Principal Protection Explained

Monday, March 27th, 2017 and is filed under Annuity News, Financial Planning Tips, Retirement Income Annuities

If you are like most investors, your retirement portfolio suffered big losses during the market crashes of 2000 and 2008, and you are looking for a solution that will help you avoid ever losing money like that again.

Stock market volatility drove investors to seek safety in principal protected investments. One of the most popular principal protected investments is the fixed index annuity. Read More

Fixed Index Annuity Basics

Monday, March 13th, 2017 and is filed under Annuity News, Retirement Income Annuities

Fixed Index AnnuitiesIn a recent blog, we explained the four different types of annuities where one of those four was the fixed index annuity. Now we’ll take a closer look at the features of Fixed Index Annuities to illustrate why we believe the fixed index is the better choice over the other types of annuities.

When looking at the different kinds of investment vehicles and plans that are available, we can put them into two basic groups: those that risk your principal, and “safe money” options that protect it.

The traditional investments most of us know about fall into the group that put our principal at risk: stocks, mutual funds, real estate, commodities, and so on.

On the other side of the equation, we have what we call “safe money” plans, where our principal is guaranteed from loss. Read More

Four Types of Annuities

Wednesday, March 8th, 2017 and is filed under Annuity News, Retirement Income Annuities

Four Types of AnnuitiesBefore we delve into the four types of annuities, let’s start with a simple question:  What is an Annuity?

An Annuity is simply an insurance product that guarantees income – usually during your retirement years, but can also be used to meet other long-range goals. An annuity may be purchased with either a single payment or a series of payments or contributions. Then the insurance company is obligated to make regular payment to you either immediately or at a scheduled date in the future.

There are four different types of annuities. At Annuity Watch USA, we specialize in fixed index annuities, and when you understand the basics of each type, you will see how fixed index annuities stand out above the rest. So, let’s start by taking a look at each of the four types of annuities. Read More

Multiple Retirement Accounts – Think Outside the 401k Box.

Wednesday, March 1st, 2017 and is filed under Annuity News, Retirement Income Annuities

Though saving with a 401(K) is easy and you get a tax break, there is also something to the adage that it is possible to have too much of a good thing. Here are three good reasons to think outside the 401k box: Read More

Annuity Watch USA Awarded Top 100 Retirement Blogs

Monday, February 13th, 2017 and is filed under Annuity News, Uncategorized

Last week Feedspot announced their Top 100 Retirement Blogs List winners, and Annuity Watch USA made the list!

Annuity Watch USA placed number 65 on the list of the Top 100 Retirement Blogs in the world. Read More