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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Howard Hafetz |
December 18, 2013 |
Fixed Annuities, Index Annuities, Long Term Care, Member Posts, William Clay Tucker
Written By: William Clay Tucker, CAP, CMFC, CRPS in Canton, GA When does it make sense to own a Fixed Index Annuity (FIA) that provides an enhanced income payment for Long Term Care (LTC) needs? First of all, there is no replacement for a good LTC policy that covers 3-5 years of potential care needs with a Cost of Living Adjustment (COLA) applied to the benefit payment. The only reason not to have LTC coverage is if you are able to fully cover these costs...
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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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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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Richard Ericson |
December 9, 2013 |
Annuity Basics, Annuity Bonuses, Annuity Caps, Fixed Annuities, Income Riders, Index Annuities, Member Posts
Which equity indexed annuity is the best? Which annuity is the best for you? Often individuals become overwhelmed by the amount of choices available when learning about, and selecting the best annuity for their purpose. I believe those who are over 50 should have a majority of their retirement assets in safe, protected and guaranteed retirement planning vehicles. The key investment piece is the Equity Index Annuity. Equity Index Annuities may be referred to as fixed index, index, or hybrid. Equity index annuities are NOT...
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Jason Soloman |
December 6, 2013 |
Annuity Basics, Annuity123, Index Annuities, Jason Soloman, Member Posts, Surrender Charges
Some annuities, specifically indexed annuities, have a surrender charge that ranges from 3-15 years. So if you are not terminally ill, require nursing care for more than 90 days, and want to withdraw more than 10% from your annuity there will probably be some monetary consequences to go along with your withdraw. Some surrender charges are defined and won’t change; others fluctuate via their Market Value Adjustment. So what is a Market Value Adjustment (MVA)? Essentially a Market Value Adjustment is the insurance company’s way...
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John P. Grimes |
December 4, 2013 |
Income Riders, John Grimes, Member Posts
Not sure what the 60/40/4 rule is? My guess is you probably do know. If you’ve worked with a financial advisor to help you plan for retirement or read any number of financial publications or googled ‘retirement strategies’ then you’ve seen some form of this rule of thumb for a secure stream of retirement income. Basically, if you have 60% of your retirement funds in stocks, 40% in Bonds and withdraw 4% per year then historically your retirement nest egg should last as long as...
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Howard Hafetz |
December 3, 2013 |
Fixed Annuities, Howard Hafetz, Income Riders, Index Annuities, Member Posts
In regard to “GUARANTEED INCOME RIDERS”*, the explanations of how they work fall into the “Goldilocks Syndrome”. In some cases, not nearly enough information, in others, much too much! Some authors feel the need to explain “actuarial reasoning”, others, do what typically inexperienced advisors do, “tell clients what they want to hear”. Too hot, too cold….. not “just right”! I am going to try to do just that, tell it like “Goldilocks” would! The reason these riders were created was to enable clients to have...
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Stan The Annuity Man |
November 21, 2013 |
Ask Stan The Annuity Man, Fixed Annuities, Immediate Annuities, Index Annuities, Member Posts
Question: I need to supplement my income stream right now and have been shown an immediate annuity by one agent and an indexed annuity by another agent. The products seem very different. Which is the best one to buy? Ernie from Billings, Montana Answer: Thanks for the question Ernie. Immediate annuities (i.e. Single Premium Immediate Annuities) and indexed annuities are drastically different strategies, so I’m a little surprised that you were shown both for income needed to start right now. Since that is what you...
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Anton Hendler |
November 18, 2013 |
Annual Reset, Annuity Caps, Fixed Annuities, Index Annuities, Member Posts, Participation Rate
For those of you who are clients of ours, you will know that one of our primary retirement strategies is the use of the right combination of annuities including Fixed Index Annuities (FIAs). Fixed Index Annuities (FIAs) are annuities which are tied to the stock-market via one or a combination of indexes such as the S&P 500. This allows owners of these annuity policies to share in any upside growth BUT at the same time, investors are shielded from any downside risk. The most important...
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