Examine the different types of annuities and see if an annuity is the right fit for your retirement portfolio.
I know that many investors are not big annuity fans, but I also know that most annuity “haters” have been exposed to “fake news”, mostly via false advertising from stock guys who’ve lost business to modern annuities. I never recommend an annuity for ALL an investor’s assets, and I never recommend stocks for ALL an [...]
We are now facing an economic situation similar to about 20 years ago, and I know from experience that you’re not going to like what’s about to happen to you and your important money.
The use of the money known as the “float” allows the insurance company to use the funds for investment. If a claim is never paid, the float can become a significant amount of investible capital. Warren Buffett discovered this concept years ago and has used the float to increase his investible assets.
The current state of the world economy is about as volatile as it has ever been since WWII. Many investors have run to safety and made huge purchases in the only one really safe vehicle available-US Treasuries. Buying Treasuries is definitely a safe investment option….or is it? It is true that US Treasuries carry no risk, no risk in your investment being lost. However, there is another risk associated with investing in US Treasuries.
Fear is a powerful emotion I like Halloween as do most people. I love to have the kids come to the door and “trick or treat” especially the little ones. They are so excited and so am I, being scared is no fun in real life especially the fear of the unknown. When we look [...]
Just a simple rate movement over time of 3% (3.25% discount rate) would reduce the actual value of all inforce US Treasuries by as much as 40% of their market value. Think what would happen if interest rates went even higher? Disaster would loom and trillions of dollars would evaporate if these assets were liquidated. Of course there would be a winner: the US Taxpayer. Treasuries would be replaced with a higher earning interest rate bond, but at a far less value a third of its market value of the original bond.
There is one category of annuities that do pay higher yield than market returns. If you allow the annuity company to hold your funds long term, you can receive a higher than market yield return if you receive the funds as income.
A tax-deferred annuity helps manage tax liability A tax-deferred annuity is a plan in which income tax on an original deposit of investment income is not charged during the investment period. The tax liability is deferred until the owner or beneficiary begins to receive (or accesses funds) periodic payments of earnings from the invested [...]
Only a fool would buy an annuity, right? Recently, a well-known financial columnist suggested that annuities were a “foolish” choice. He went on to make several points to build support for his position and to gain attention for himself. This person makes his living by being contrary, by suggesting the normal way of business is [...]
Financial Dentistry and the Often - Uncomfortable Process of Annuity Shopping As a 20-year annuity agent, I began to recognize several years ago the uncanny parallel that the emotional process of shopping for an annuity, from your perspective as a consumer, is not all that much different than the psychological process of scheduling a [...]
