Monday, March 13th, 2017 and is filed under Annuity News, Retirement Income Annuities
In 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
Wednesday, March 8th, 2017 and is filed under Annuity News, Retirement Income Annuities
Before 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
Monday, December 19th, 2016 and is filed under Annuity News, Financial Planning Tips, Retirement Income Annuities, Uncategorized
If you are retired or planning for retirement, you may have learned that transferring the burden of generating lifetime income and managing market risk to an insurance company makes a lot of sense. Peace of mind and guaranteed retirement income come through the purchase of an annuity.
But which type of annuity is right for you? Which company should you trust your hard-earned retirement money to? Who has the highest returns with the best income payouts? Where do you even start? Read More
Friday, October 2nd, 2015 and is filed under Annuity News, Retirement Income Annuities
As millions of American move swiftly into their senior years, their focus turns to their financial condition and how to continue to live out their remaining years in relatively the same lifestyle as that to which they have previously enjoyed. This situation is compounded by the fact that, as a nation, we are living longer than earlier generations. Better healthcare and nutrition have extended most of our lives by years–if not decades. According to a study cited by USA Today in 2014, the average remaining lifespan for a U.S. citizen who was 65 years of age in 2012 is another 19.3 years. In many cases, Social Security alone will not provide enough annual income for a married senior couple to live on in the future.
One of the financial instruments that many people use to supply life-long retirement income is called an annuity. In combination with other savings vehicles, annuities help form the foundation for a well balanced, long-term financial plan. Read More
Monday, December 8th, 2014 and is filed under Annuity News, Retirement Income Annuities, Uncategorized
Choosing the right annuity to help support your retirement income needs can be confusing and a little intimidating especially when so many different kinds of annuities offer such a dizzying variety of contracts. To help simplify the process, here are six questions to ask before buying an annuity, regardless of whether it is variable, fixed, or indexed:
1. Should you put your money in an annuity or something else like a mutual fund? Read More
Thursday, September 18th, 2014 and is filed under Annuity News, Retirement Income Annuities
It may sound like a trick question, but the answer is simple.
An account earning 8% simple interest earns less over time than an account earning 7% compound interest. A popular hybrid annuity advertises an 8% minimum guaranteed simple interest rate, but the savvy consumer will recognize the better value lies in another strategy with a 7% compounded minimum interest rate. Read More
Wednesday, July 30th, 2014 and is filed under Annuity News, Retirement Income Annuities
Longer life expectancy and more years spent in retirement are two realities confronting the baby boom generation—and generations beyond. But longevity can be a mixed blessing. Saving and preserving a nest egg to last a lifetime—no matter how long one may live—is one of the most vexing challenges a retiree must contend with. Outliving accumulated resources is a very real threat.
Among the innovative ideas emerging over the last decade to address this challenge is a totally new retirement vehicle known as a “longevity annuity.” Enter the Internal Revenue Service. In February 2012 the agency published proposed regulations outlining the contours of this new annuity contract: the “qualified longevity annuity contract (QLAC).” Purchased with traditional IRA or other retirement plan assets, QLACs disperse benefits with start dates far beyond the typical ages of 65 or 70½—strategies that tax law didn’t previously allow. Think of the QLAC as a life annuity with a deferred start date. Read More
Monday, April 28th, 2014 and is filed under Retirement Income Annuities, Uncategorized
In the past couple of decades, annuities have become more popular with financial advisors and retirees for retirement planning. In many cases, annuities can be a valued part of a well-diversified portfolio. However, there are also many characteristics of annuities that can make them undesirable or even hurtful in retirement planning. Annuities have evolved from simple pension replacement plans and CD alternative types of investments to include complicated investment vehicles that many advisors claim to deliver gains regardless of market performance. Often, it’s the claim of market returns without risk of loss that draws the prospective investor in for a closer look. Read More