![Howard Hafetz]()
Howard Hafetz |
December 27, 2013 |
Annuity Basics, Annuity Commissions, Annuity123, Howard Hafetz, Member Posts
I recently read an article from an advisor referral website that claimed the only type of advisor one should use is a fee-based (or fee-only) financial advisor. Not only is that reasoning weak, but also very short-sided. Let’s examine. We live in a free-market capitalist economy. Someone creates a product or service to sell. The entrepreneur incurs expense to market the product or service. He or she also has potential other cost to incur before the product or service is sold, among those are, but...
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![John P. Grimes]()
John P. Grimes |
December 26, 2013 |
Annuity Basics, Annuity Bonuses, Annuity Caps, Annuity123, Index Annuities, John Grimes, Member Posts, Payout Factor
In the years before Indexed annuities were offered (pre 1995), fixed annuities had only one rate you needed to know to compare policies; the fixed interest rate. Assuming the companies had similar financial strength ratings it was pretty easy to pick the best annuity for your needs: Who was offering the highest interest rate? Fortunately (or unfortunately if you long for simpler times), annuities today come with many moving parts. Riders that provide guaranteed lifetime income, long term care benefits and enhanced death benefits are...
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![Carl Ostenson]()
Carl Ostenson |
December 23, 2013 |
Annuity Basics, Annuity123, Carl Ostenson, Member Posts
Here’s a question I have been getting more and more lately. With the bulk of Americans retirement money in qualified plans such as 401ks and IRAs, it makes sense. So let’s go through this bit-by-bit and give you some examples: When you turn 70 ½ Uncle Sam and his buddy the IRS will force you to start taking money out of your IRA or 401k regardless if you want to or not. It’s called the Required Minimum Distribution. You can read a table for calculating...
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![Howard Hafetz]()
Howard Hafetz |
December 19, 2013 |
Annuity Basics, Annuity123, Howard Hafetz, Index Annuities, Member Posts
The Indexed Annuity market is very convoluted and voluminous. As mentioned in a previous article (Goldilocks Syndrome), the insurance companies design them to have something unique, so to differentiate themselves from other products in the market. By definition, they are challenging to understand, but once you get the basics down, you will find them to be much simpler than you would expect. The term “Indexed”, refers to market indexes, and they could be stock market or bond markets, US or International markets, precious metals markets,...
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![James D. Kersey]()
James D. Kersey |
December 19, 2013 |
Annuity Basics, Annuity Taxes, Annuity123, Member Posts
In my 33 year career, my clients have always been inquisitive of the tax consequences of moving money from one account to another. As we review current and prospective clients’ annuity contracts and they come to realize that there may be a better solution, they all seem to want to know the answer to that all important question of “Will I pay taxes if I exchange my annuity for a better one?” My answer is always the same: “No!” Even though the IRS always seems...
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![Jason Soloman]()
Jason Soloman |
December 17, 2013 |
Annuity Basics, Fixed Annuities, Index Annuities, Jason Soloman, Member Posts
The debate about fixed annuities has been going on for years. Some advisors/insurance agents will only sell indexed annuities to retirees; other advisors/agents won’t associate their name with such products. I on the other hand believe that for the right person, an indexed annuity could be a piece of a holistic retirement plan. Listed below are 3 reasons I like and hate indexed annuities. Things I love About Indexed Annuities 1. Income For Life People can bash the Social Security system all they want, but...
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Jason Soloman |
December 16, 2013 |
Annuity Basics
Written By: Matt Nelson – President of Income For Life LLC in Topeka, KS Think about this: What sort of chaos would there be across the nation without insurance products? For starters, there would be no sporting events on any level. There would be no workplace. There would be no manufacturing or industrial productivity without insurance. Without it, our economy would not prosper because no single person or business entity could afford to take on such liability exposure. With that said, it is important to...
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![Howard Hafetz]()
Howard Hafetz |
December 13, 2013 |
Annuity Basics, Howard Hafetz, Income Riders, Member Posts, Miscellaneous Annuity Info
There is a lot of marketing done that references various “returns”. Much of it is misleading at best and flat out incorrect at worst. Let’s try to make sense to all the rhetoric. Marketing, typically, is designed to generate interest in people that may be in the market for a product or service. It should capture interest by emphasizing the best attributes of the product or service. But, I am sure most would agree that, in many cases, it goes way beyond that. Have you...
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![John P. Grimes]()
John P. Grimes |
December 13, 2013 |
Annuity Basics, Annuity123, John Grimes, Long Term Care, Member Posts
If you’re of a certain age like me, think AARP subscriber, then you’ve no doubt been bombarded by solicitations to purchase long term care insurance, LTCI. It really makes sense given that the chances of needing care at some point are better than 50/50 for most people. Do a little research and you’ll find it costs anywhere from $6K to $10K per month for a stay in an Assisted Living facility or Nursing Home. Given that the average stay in a nursing facility is 3-5...
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![Keith L. Collins]()
Keith L. Collins |
December 12, 2013 |
Annuity Basics, Annuity123, Fixed Annuities, Member Posts
For most retirees living on a fixed income, every penny counts. Unfortunately for them, every penny counts to the Internal Revenue Service too. There’s no arguing that taxes on social security are incredibly high. As a matter of fact, according to current tax law, up to 85 percent of a person’s Social Security income is taxable when their total ‘threshold income’ exceeds a set limit. What is threshold income? Threshold income is the government’s formula for determining how much of a person’s Social Security is...
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