FAQs

Annuity Questions – frequently asked  

Answered Below so you too can make informed decisions!

What is your strategy for staying retired ?  Get the Answers You Deserve…

If you are like most of the visitors who do research, you may want to know :

  • Are Annuities secure and safe for investing?
  • Should Annuities be part of your portfolio?
  • Can Annuities pay you a higher secure income?
  • Can Annuities safely grow your assets?
  • Do Annuities Make sense for your unique financial situation?

The answers to these and many other Frequently asked Annuity Questions are listed below. Get the answers you need for your own annuity questions. Go to FAQs

“It is not how much you make, it’s how much you save”

Feel free to Contact Us if you have any questions

Frequently  Asked  Annuity Questions: 

With Annuities, How can I :

  1. Know which companies may be better than others for safety of my money ?
  2. Possibly eliminate my uncertainty or fear of running out of money in retirement?
  3. Retain my gains while participating in the stock market ?
  4. Protect my spouse from running out of money if I pass away first?
  5. Create an annuity income withdrawal system, that I cannot outlive ?
  6. Use annuities as a hedge against inflation? 
  7. Possibly avoid and reduce taxes with annuities ?
  8. Benefit from stock market gains without market loss?
  9. Calculate the correct percentage of assets you need in annuities (and other investments) to stay retired ?
  10. Know the different types of annuities are, and what may work for you ?
  11. Use Portfolio-Based planning for my retirement ?

 

Know which companies may be better than others for safety of my money ?

1  If you stay with high A rated or higher insurance companies, this helps when you choose annuities. There are rating agencies that will give you ratings on each company, and when discussing particular products, do not hesitate to ask “what is their rating?”     Back to FAQs

 

Possibly eliminate my uncertainty or fear of running out of money in retirement?

2  Outliving your money; whether you have modest means or millions saved is one of the greatest concerns for retirees or those preparing to retire.  Some annuities can offer riders and benefits that can guarantee payouts throughout your retirement, and for life.    Back to FAQs

 

Retain my gains while participating in the stock market ?

3  Annuities are a way of protecting principal/gains while avoiding the volatility of the stock market. Certain annuities have subaccounts that do participate in the market, and you participate in gains when those subaccounts do well, while protecting against losses.    Back to FAQs

 

Protect my spouse from running out of money if I pass away first?

4  Many couples have multiple income streams that pay while both are living such as social security, pensions, annuities, investments, and etc. With a spouse’s passing, some of these may be reduced or stopped.  If the spouse that used to handle the investing passes first, it is difficult for the surviving spouse. Annuities that are set up in advance can be turned-on if needed to immediately fill the income shortfall and take the pressure of the grieving spouse in making difficult financial decisions. ” Back to FAQs

 

Create an annuity income withdrawal system, that I cannot outlive ?

5  In the good old days, there were company pensions that would give lifetime payouts for their employees. Most companies have discontinued this, and now have benefit plans (like 401Ks,etc), or have even been offering buyouts  on their older pension plans.  That leaves many people with no pension and money accumulated in  their 401K plans (and other plans) wondering how to convert this into income.  They are faced with either participating in the volatility of the market, or creating their own system where they can convert this to something that can pay out the income they need. Annuities can be used, and even laddered, to produce income over a long period of time, or even a lifetime.  Back to FAQs

 

Use annuities as a hedge against inflation? 

6  Using an approach of laddering annuities, while utilizing their unique income riders and features – may help offset future inflation that may appear. There is also the approach of using annuities in conjunction with investments (for those who wish to participate in the stock market) that also may give growth over time and may help offset inflation. Back to FAQs

 

Possibly avoid and reduce taxes with annuities ?

7  With proper retirement planning annuities have some tax-favorable features. They also have some disadvantages that require proper review and planning that is specifically created to meet your retirement objectives. Back to FAQs

 

Benefit from stock market gains without market loss?

8  When you are in retirement or preparing the retire, you may become adverse to the fluctuations of the stock market.  When you were working, market volatility was problematic, but you may now wish to avoid this and have some of your portfolio in fixed-type investments that avoid this. We would be happy to discuss this further and help you develop the fixed vs market “percentage” that best fits your objectives.  You may be a 100%, you may be a 50%, contact us for your free analysis. Back to FAQs

 

Calculate the correct percentage of assets you need in annuities (and other investments) to stay retired ?

9  Deciding just how much of your portfolio should go into annuities is a question that depends on many factors that are tied to your retirement objectives, and advice from financial professionals can vary widely. Those who  focus solely up upon annuities may suggest most if not all of your assets in annuities.  An investment advisor who focuses upon market investing may advise against annuities.  Depending upon your financial situation and your individual preferences, our office will help determine your income needs.  This will help establish  the minimum  amount of money you should initially consider for annuities. You can always increase the percentage over time as needed or wanted. Back to FAQs

 

Know the different types of annuities are, and what may work for you

10   There are multiple types of annuities, all with different features.  There is no one size fits all with annuities. It depends upon your specific financial situation, your risk tolerance, age and other factors.  It is also dependent upon the current offerings, which can change monthly.  If you want to discuss this in detail, please contact us, and we would be happy to help you and share with you the latest offerings and information. Back to FAQs

 

11 Using  Portfolio-based planning for Your Retirement

We practice and recommend a Portfolio-Based planning process when considering annuities. This approach has the effect of balancing your overall portfolio so you can meet your retirement objectives by first identifying the least amount of your investments or savings (if any) that should be considered for annuities. We analyze and offer multiple alternatives so you can clearly identify your best income and growth opportunities. Feel free to contact us  for assistance.

The Portfolio planning approach does takes more time but we can help objectively identify a better retirement plan; rather than just ending up with the most convincing salesperson or advisor.

When requesting help you can be assured of working with an experienced (over 30 years) CERTIFIED FINANCIAL PLANNERTM  who is independently insurance licensed and securities licensed as a fiduciary financial planner (Read Fiduciary Article)  and with access to the vast majority of annuity companies in helping you choose the best annuities for your specific needs. We have always had a commitment to serve all clients with a high standard of excellence in financial planning for retirement.  Back to FAQs