More than 99% of annuities in the marketplace don’t meet our strict requirements. In fact, until recently we’ve refused to offer them to our clients.
An annuity can be a powerful and predictable financial vehicle for your retirement income. It can be compared to a pension that guarantees a specific amount of money each and every month that is guaranteed, for as long as you live. This predictable income can be life-changing for many.
That said, we’ve refused to offer annuities to our clients in the past for three key reasons.
1. Principal at Risk – Many annuities (called variable annuities) have your principal at risk. If the market performs well they have great upsides, but during down markets your money can be lost. We refuse to recommend products that don’t offer adequate safety. The current and future economic outlook demands retirement vehicles that protect and secure your assets, not those that put you at risk.
2. Low Rates of Return – Most annuities have very low rates of return. While they do have guaranteed income-for-life features, the current low interest rate environment has kept these products far from ideal. Low rates of return can often drain money, in part due to inflation eating away at future buying power.
3. High Costs – Many annuities are in essence high-cost products. While retirees have purchased annuities in spite of these costs in exchange for guaranteed income-for-life benefits, we could never quite convince ourselves that this was best for our clients.
A BETTER SOLUTION
A new product has recently been offered to exclusive offices around the country that addresses all three of our major concerns. It uses indexing, not a variable strategy, so it protects you against loss, while at the same time allowing your money to participate in market gains to a much greater extent than other indexed annuities. It also has very competitive rates of returns, and the costs have been reduced.
Click here to learn more about this innovative annuity strategy.
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