Gary Thomas |
June 16, 2014 |
Variable Annuities
Many owners of variable annuities purchased in the mid-2000s have been receiving letters from the insurance companies offering substantial sums for giving up the guarantees provided in their income or death benefit riders. The riders were named a confusing alphabet soup of initials that would drive a Scrabble champion nuts. Known as GMIB, Enhanced GMIB, Enhanced GDB, GWB, GAB, etc., they were coupled with their method of computing the increases – automatic step-up and ratcheting to name a couple. The riders aimed to provide a...
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Michael Canet |
April 11, 2014 |
Variable Annuities
Over the last decade, certainly up to the 2008 market crash, one of the hottest-selling investment products was the variable annuity. While there is no silver bullet out there, variable annuities (VAs) were often presented as an investment tool that came with guarantees of income for the investor. After getting burned by the market in early 2000s, many investors were looking for just that: A guarantee. After all, that is what an insurance company is for; they transfer the risk to another person. In this...
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John L. Olsen |
November 18, 2013 |
Annuity Basics, Annuity Definition, Deferred Annuities, Fixed Annuities, Immediate Annuities, Index Annuities, John L. Olsen, Member Posts, Variable Annuities
If you’re like most people, you find the subject of annuities confusing. Just the terminology would befuddle anyone – “exclusion ratio”, “annuitization”, “indexed”, “cap rate”, “participation rate”, etc. As if that weren’t enough, the terms are not applied uniformly. Some writers about annuities refer to the kind that produces an income immediately after purchase as an “immediate annuity”; others call it a “payout annuity”. “Equity index annuity” and “fixed indexed annuity” are used almost interchangeably to refer to the same type of contract. And some...
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Rob Brinkman |
November 4, 2013 |
Annuity Basics, Income Riders, Index Annuities, Rob Brinkman, Variable Annuities
One of the most popular new benefits of both variable and fixed indexed annuities is setting guaranteed income amounts with the use of Income Riders. Many of these riders offer contractual guaranteed income benefits of 6%, 7%, 8%, and even 10% in some instances. Sadly, the majority of consumers either have not understood (or were misled) how these income riders actually work. These riders, when sold correctly for the ideal client, are one of the most powerful retirement benefits in the country. However, if you...
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Rob Brinkman |
October 7, 2013 |
Annuity Basics, Annuity Definition, Annuity Videos, Fixed Annuities, Index Annuities, Member Posts, Rob Brinkman, Variable Annuities
Have you been sold or “pitched” an annuity and you have no idea if it is the right kind of annuity for your specific needs? As you hopefully know, there are numerous types of annuities that are designed to address a specific risk or groups of risks that many retirees face. A set of pros and cons for one annuity type is often completely different when analyzing benefits and features of other types. Education is key, and the video below does a great job in...
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John L. Olsen |
October 1, 2013 |
Annuity Basics, Annuity Suitability, Annuity Taxes, Deferred Annuities, Fixed Annuities, Immediate Annuities, Index Annuities, John L. Olsen, Member Posts, Miscellaneous Annuity Info, Variable Annuities
If you are considering the purchase of some kind of annuity, you know what you want and need. But how can you determine whether the annuity product being recommended to you will meet your needs better than a different kind of annuity or some non-annuity alternative (such as a CD or mutual fund)? And how did the insurance agent showing you the annuity decide that the product he’s showing you is the one most suitable for you? The answer to both questions lies in that...
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Stan The Annuity Man |
September 26, 2013 |
Annuity Basics, Ask Stan The Annuity Man, Fixed Annuities, Index Annuities, Member Posts, Variable Annuities
Question: Annuities seem to be the hot financial product with all of the advisors I have recently met with. They can’t be good for every single person, so who should not buy an annuity in your opinion? from Walt S. in Lincoln, Nebraska Answer: Great question for the annuity buying public Walt. Much appreciated for the opportunity to provide this much needed answer. First of all, it’s important to know what annuities actually are and what they should solve for within your portfolio. Annuities are...
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Rob Brinkman |
September 17, 2013 |
Annuities in IRAs, Annuity Videos, Index Annuities, Member Posts, Rob Brinkman, Variable Annuities
When does it make sense to put an annuity inside of an IRA (Individual Retirement Account)? This is a frequent question and the answer lies in what you are wanting to accomplish with your particular investment. We all know that annuities are tax-deferred and so are IRAs. So, is an investor paying for tax-deferral unnecessarily when utilizing an annuity inside a qualified plan? In this video, Rob Brinkman explores this question and gives some answers to when it does and doesn’t make sense to put...
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Stan The Annuity Man |
August 22, 2013 |
Ask Stan The Annuity Man, Deferred Annuities, Income Riders, Index Annuities, Member Posts, Variable Annuities
Question: Is there a way to buy an income rider without having to buy an annuity? from Steve in Houston, TX Answer: This is one of the most forward thinking and insightful questions I’ve ever received. You Steve, are a visionary my friend. Currently, there are a select few companies working on income riders that are “non-annuity”, with more coming in the near future in my opinion. People want guarantees and benefits that annuities provide, but in many cases, they don’t want to tie their...
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John L. Olsen |
August 16, 2013 |
GLWB Rider, Index Annuities, John L. Olsen, Member Posts, Variable Annuities
“Lifetime withdrawal benefits” are very popular these days; most of the indexed or variable deferred annuities sold today are bought by consumers who paid extra for this “rider”. Regrettably, all too many of those buyers believe that, for that extra cost, they will earn a guaranteed “investment return equal to the “rollup rate” of the annuity. They won’t. They will get a guaranteed amount of income, but that’s not the same thing. Let’s define our terms. A “Guaranteed Lifetime Withdrawal Rider” (usually abbreviated as GLWB)...
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