Let’s face it, if all the market did was go up, the need for annuities would not exist. The reality is the market goes down, sometimes drastically. The 90’s exposed millions to the rewards of investing. The last four years showed the frightening side of the market. The fixed/indexed annuity plays well to people because of its combination of protection and potential.
Here is a secret about insurance companies, a secret that puts everything in perspective. Insurance companies do not make decisions based on individuals; they make decisions based on a large pool of people. Their tool? The Commissioners Standard Ordinary Mortality Table, known as CSO. The statistical table allows insurance companies to know exactly how many people nationally in a specific age group will die. It is not a guess, it is pure science.
Selling bonds as an income is ok, but other options are much better and using them does not mean your account can be affected by increasing interest rates, actually the opposite is true. Fixed Indexed Annuities can provide the very income Boomers are looking for and without compensation being charged directly to the Boomer. Plus a variety of options exist especially the BIG one, income can never be outlived.
Ask yourself this: “ Is there anything about my financial professional or what he or she is recommending that guarantees my money will not participate in market losses?” Then ask yourself what I want my financial professional to do with my money. When I ask that question I usually get one answer: “I want it to grow and I want it to be safe.“