It’s important to know that even in the best years the stock market carries a 30% chance of loss. So there is always a 1 out of 3 chance the market won’t perform to expectations. Sadly, in good times people think the market will continue to climb. But what are the odds of consistently beating the market and avoiding market meltdowns? What are the odds of becoming a professional athlete? Plenty of people have overcome the odds and made it big in sports. But what do you say to a 50 year old who wants to play in the NFL? We need to be realistic. The older you get, you may not be able to afford the time to regain your losses.
Have you heard of The Magnificent Twenty? They’re a group of 20 in an elite group who lost at least $100 million in the stock market back in 2008. Now here’s a question for you – does anyone have better information than these informed investors? No one complains when the market is roaring, but how vulnerable are normal investors if the top guns don’t see the avalanche coming?
The theme of the fixed/indexed annuity message is safety and security. There is plenty of research and studies to back up the fact that these plans work and they work well. When you are retired, everything works completely different than when you were working. It’s like doing everything in a mirror. Money management activities become opposite to when a person is working. Safe money fixed/indexed annuity accounts grow on a guaranteed basis, with no risk, even in uncertain economies that occur from time to time. It is pretty satisfying to save your retirement money from collapsing and not be in a position where you never have to ask the question “Can I win or lose?” Can you put a price tag on peace of mind?
The safe money fixed/indexed annuities method speaks for itself: The ability to grow money safely, securely, and guarantee a lifetime income. The ability to avoid financial enemies: risk, taxes, and fees. Unfortunately, the average person spends more time planning a vacation than managing their money.
The safe money fixed/indexed annuity owner won’t suffer losses when the market fails, because you never leave the safety and security of a highly rated insurance company. Do you want your hard earned money to have privacy, be protected from probate, and pass automatically to your heirs? Is it desirable to have the potential to increase retirement fund yields without market risk and no brokerage fees?
Do you wish to have an additional stream of income riding piggy-back to your pension and social security? If you have a safe money fixed/indexed annuity, you have all of the above.
Tuesday, August 27, 2013
Thursday, August 8, 2013
Concerned About Trusting An Insurance Company With Your Important Retirement Funds?
How safe is your fixed indexed annuity? Should you trust a fixed indexed annuity with your important retirement funds? What happens if an insurance company were to fail? These and other questions are vitally important and the answers may surprise you.
Why even ask these questions? In the past, investors simply trusted the third party. Now, after the financial meltdown beginning in 2008, questions must be asked.
And answered.
The simple fact remains that retirees and retiring Baby Boomers today are looking for a way to guarantee that their money is safe, and that they will have enough income to last as long as they live.
Income is the more important decision, far more important than having enough money.
“Income is King with the Baby Boomers.”
So is the money safe in an annuity? Baby Boomers are very concerned about safety for one simple reason.
“They Don’t Have Time to Make It Again!”
Other than social security and earned pensions, most retirement investments are not guaranteed and are subject to variations of account values – volatility. How can they be assured their retirement accounts will last as long as they are needed?
Their worries are justified and the number one concern for retiring Baby Boomers is simple: safety – Is my money safe? So, how does this safety work? How are annuities actually guaranteed? The safety of annuities is like a safety net, a safety net to cover any possible occurrence.
Insurance Company Assets: The safety of an Index Annuity is based on the financial strength and claims paying ability of the company which issues the annuity. Annuities are regulated by each individual state Department of Insurance (DOI). The DOI regulates, audits, and sets reserves of the insurance companies. This assures the annuity purchaser of the solvency of the insurance company.
These highly regulated companies are also subject to strict capital reserve requirements which result in reserve level requirements. These capital requirements can be higher than the capital reserve requirements for banks regulated by the FDIC.
Because of the high regulations required by each state’s Department of Insurance, the insurance companies must invest in solid, safe, and suitable vehicles. They invest in some of the most highly-rated and conservative investments available, such as highly rated corporate bonds. In addition, a high percentage of their investments are in U.S. government bonds and U.S. Treasuries.
Annuities are some of the most regulated financial products available today.$
Why even ask these questions? In the past, investors simply trusted the third party. Now, after the financial meltdown beginning in 2008, questions must be asked.
And answered.
The simple fact remains that retirees and retiring Baby Boomers today are looking for a way to guarantee that their money is safe, and that they will have enough income to last as long as they live.
Income is the more important decision, far more important than having enough money.
“Income is King with the Baby Boomers.”
So is the money safe in an annuity? Baby Boomers are very concerned about safety for one simple reason.
“They Don’t Have Time to Make It Again!”
Other than social security and earned pensions, most retirement investments are not guaranteed and are subject to variations of account values – volatility. How can they be assured their retirement accounts will last as long as they are needed?
Their worries are justified and the number one concern for retiring Baby Boomers is simple: safety – Is my money safe? So, how does this safety work? How are annuities actually guaranteed? The safety of annuities is like a safety net, a safety net to cover any possible occurrence.
Insurance Company Assets: The safety of an Index Annuity is based on the financial strength and claims paying ability of the company which issues the annuity. Annuities are regulated by each individual state Department of Insurance (DOI). The DOI regulates, audits, and sets reserves of the insurance companies. This assures the annuity purchaser of the solvency of the insurance company.
These highly regulated companies are also subject to strict capital reserve requirements which result in reserve level requirements. These capital requirements can be higher than the capital reserve requirements for banks regulated by the FDIC.
Because of the high regulations required by each state’s Department of Insurance, the insurance companies must invest in solid, safe, and suitable vehicles. They invest in some of the most highly-rated and conservative investments available, such as highly rated corporate bonds. In addition, a high percentage of their investments are in U.S. government bonds and U.S. Treasuries.
Annuities are some of the most regulated financial products available today.$
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