Annuities

In my nearly 15 years of experience as an insurance advisor, I have met with hundreds of singles and couples. I have found that the retirement planning product that is the most confusing, complicated, least understood, and the most falsely represented by financial advisors, insurance professionals, and others is annuities.

One incorrect perception of annuities is that even though there are many different types of annuities, they are often lumped into one product or type. This couldn’t be further from the truth. Even though all annuities are sold by insurance companies, that is the only universal truth about them. They are as different as apples and oranges. Annuities come in many types: variable, fixed, fixed index, SPIA’s, and more. Some of these annuities are designed for lifetime income—many are not.

Even though many annuities are sold as safe savings or investment products with no change of losses, many of those annuities are subject to stock market losses and risk to the principal, no matter what the salesperson may have claimed or said.

Even though most fees are undisclosed by many who sell them, many annuities do carry fees of up to 4% or more annually.

Some annuities are purchased from individuals who make outlandish claims of high bonuses of 20% or more and guarantees of 6%, 7%, and more per year, regardless of stock market performance. Sadly, people who buy these annuities later learn that neither the large bonus nor high annual growth guarantees are actually guarantees to their money. Rather, they are guarantees to an account that has no cash value.

Similarly, some annuities are purchased based on anticipated growth that may be exaggerated by the sales person.

It’s no wonder why there is so much confusion and dislike surrounding annuities. So, how do you get the straight scoop about annuities and how do you know what type of annuity might be right for you…without the sales hype, misinformation, or misrepresentation?

The answer is simple. Come see Boyd Casselman. Schedule a no-hype, no-pressure, no-cost appointment and start getting educated. Boyd will take the time to understand your pain, concerns, needs, and goals, and he will work to put together a customized plan for you. Boyd will educate you about why his recommended products and strategies really work. You will not be “sold” a product or told what to do, but rather you will be empowered with truthful, straight-forward and valuable information. You will be able to make wise and informed decisions about how to best navigate your retirement years safely.

Purchasing the right annuity with the right amount of money at the right time for the right reasons, as part of an overall retirement and income plan, can be the difference between a comfortable retirement and one with unforeseen or unexpected negative financial consequences. Making the right financial decisions now will be critical and ensure you never run out of the money you need for the rest of your life.