We haven’t seen anything in the past like what is on the verge of happening with the annuity industry. The time will come when annuities will provide the very basis of most financial plans. Why? The answer is simple, safety, security and freedom from risk.
Albert Einstein was quoted saying that tax deferral (compounding) is one of the greatest inventions of the modern world. Not only is tax liability deferred but by doing so but you can increase the compounding from double compounding to triple compounding.
Each month, millions of dollars are being moved from stocks, bonds, mutual funds, variable annuities, ETFs, 401(k)s, and CDs into Fixed Indexed Annuities. Why? The number 1 reason is SAFETY. But How safe is Your Fixed Indexed Annuity - are you sure it will provide you with enough income to last as long as you live? Should you trust an indexed annuity with your important retirement funds? What happens if an insurance company were to fail? These and other questions are vitally important and the answers may surprise you.
Using golf as an example makes bonds easy to understand and relate to.
The simple answer is this: it probably will never be repaid, it has been and probably always be part of our American heritage. The history of US Treasuries is fascinating story in and of itself. It began when our country began. US Treasuries go back to this country’s independence. The Revolutionary War was fought against Great Britain by the colonies as a united front but funded and manned by each individual state.
As kids almost all of us dreamed of being a millionaire I was raised in a small town in Idaho, we had one millionaire. People would always talk about her (yes, a her) about her cars, her vacations, her house and especially the Christmas party she always hosted. My parents went to the party every year; it was all so grand, at least by our small town’s standards. One year I got to park cars for the party and earned $20, a really huge payday for me. Now as I look back and wonder about being a millionaire I have realized that a big pile of money isn’t really an answer — it is what that pile of money can do that is important.
Baby Boomers love annuities, Fixed Indexed Annuities World War II ended in 1945 and with it, home came millions of soldiers, sailors, and marines. Eager for a new life, these returning GIs married, bought homes and started families. I am a member of that generation, now known as the Baby Boomers. The Baby Boomer generation [...]
How long are you going to live? Might be longer than you think. That old saying, “the longer you live, the longer you live” seems to be much more pertinent. As humans, American are living longer which translates to more time in the retirement portion of our lives. Those of us looking for ways to [...]
If you fully understood variable annuities you wouldn't consider owning one Don't take my word for it, read about then from the industry watchdog FINRA: http://www.finra.org/industry/variable-annuities Like all annuity options, variable annuity pros and cons drive the decision-making process. If you are considering the purchase of a variable or fixed annuity or if you already [...]
Learning to manage your 401(k) can provide huge benefits The creation of 401 (k) plans was essentially an accidental byproduct of the Revenue Act passed by Congress in 1978. This act included a provision that was added to the IRS Code (section 401 (k) allowing employees to avoid taxation on deferred compensation. A savvy benefits [...]