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Annuity Caps

6 Things to Consider When Buying an Annuity

Bryan Bentley

Bryan Bentley | February 11, 2016 | , , , , , ,

So, you are considering purchasing an annuity to help protect your retirement savings or to solve a concern that may not be easily addressed with other investment vehicles. Here are a few things to consider when making a decision about buying an annuity. 1. Surrender Charge Period Expressed in terms of years, the surrender charge defines how long your money must remain in the annuity before you have unrestricted access to it. With most annuities, a portion of your money is available penalty-free during the...

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Fixed Index Annuity Basics

Mark Goldfinger

Mark Goldfinger | March 27, 2015 | , , , ,

When my clients ask me to list the most important ingredients required when looking to create and maintain a stress-free retirement plan, I explain to them that there are three basic financial requirements: a guaranteed income which they cannot outlive; little or no risk of losing their money/savings, and the ability to grow their money through participation in a growing stock market and NOT a receding stock market. I then inform them that there are financial tools that will help meet these three requirements, and...

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Variable & Hybrid Annuities – Are They Good or Bad?

Jeff Juniper

Jeff Juniper | February 19, 2015 | , , , , , ,

Annuities have been around for almost 2000 years and the public’s understanding of how they work is at an all-time low. “I Hate Annuities and So Should You” is what one investment firm says in their full page ads from coast to coast. Why do they spend hundreds of thousands of dollars on those ads? The answer is to attract attention because there is so much confusion about how these products work. What they don’t tell you in those ads is that there are good...

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Four Good Reasons to Buy an Annuity Now

Jerry Rubin

Jerry Rubin | November 3, 2014 | , , , , ,

A first-class fixed indexed annuity puts you in position to collect a pension-like income, guaranteed to continue for as long as you and your spouse are alive. These annuities allow you to profit from the stock and commodities markets with no risk. This type of annuity simply uses financial market indexes, like the S&P 500, as outside reference points to determine your interest. Whenever the market (index) goes up, you make money; whenever it goes down, since your money is never invested or at risk...

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Rebuttal to ‘Don’t Buy Index Annuity Article’ on AARP

Brent Welch

Brent Welch | August 21, 2014 | , , , , , , ,

In the May 2014 AARP magazine, Allan Roth set the tone for his article “Don’t Buy It”with a picture of Leonardo DiCaprio, star of the movie The Wolf of Wall Street. In the film, DiCaprio plays a dishonest, immoral and unethical investment banker. This “Wolf of Wall Street” ended up in prison for the rest of his life, convicted of felony charges, racketeering, extortion, and stealing money from the general public. He was a wicked and completely dishonest criminal, much like Bernie Madoff. Roth suggested...

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What Is Unique About An Annuity?

Richard Ericson

Richard Ericson | July 2, 2014 | , , ,

When I coached college football years ago, the young players often wanted to stand out, to be different and unique, and have some sort of distinction from the other players. Some would wear their uniforms differently, with multicolored socks or flashy undershirts. Some would do crazy things with their hair, like shave it off, grow an extra-long beard, or let their really long hair flow out of their helmet. Although any one of these features would get a player noticed, my coaching experience taught me...

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What is an Annuity Cap?

Richard Ericson

Richard Ericson | May 7, 2014 | ,

Who knew that Dr. Seuss gave great investing advice, “The more that you read, the more things you will know. The more that you learn, the more places you’ll go.” Another common question I am asked regarding indexed annuities is, “What is an Annuity Cap?” First of all, your Annuity Cap is in relation to your contract value. Traditionally with indexed annuities the Index Cap is the maximum annual percentage number over the beginning of year index number that may be credited to you. In...

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Fixed Index Annuities – The Advent of Uncapped Strategies

Anton Hendler

Anton Hendler | March 31, 2014 | ,

One thing that is for certain in the Insurance Industry (or any service industry) is that the market will always react to demand for a product. It’s no different with Fixed Index Annuities (FIAs), and recently we have seen more and more ‘Uncapped Products’ offered in reaction to the markets demand for a greater share of upside gains. As with any FIA where you always only share in the market upside (but never in the downside) there are costs and limitations involved so provided you...

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How Do You Compare Fixed Index Annuities?

Laura Johnson

Laura Johnson | February 13, 2014 | , , ,

The idea of having a savings vehicle that can take advantage of the market upside while protecting your money from market downside sounds extremely promising. This is the usual description of a Fixed Index Annuity.  But how do you choose which Fixed Index Annuity?  Annuities have now many different options built into them and it make them harder to compare. To answer that question accurately, you first need to ask “What is the primary purpose of the money?” For example, many of my clients are...

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Choosing an Annuity? What Rate is Most Important: Bonus, Roll-up, Pay-out, Caps?

John P. Grimes

John P. Grimes | December 26, 2013 | , , , , , , ,

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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