Inflation is the rise over time in the price of goods and services. Is a loaf of bread higher than it as the year you were born? Inflation is measured as a annual percentage, the same way interest rates are measured as a annual percentage. Is inflation a bad thing? Not necessarily. It means prices are rising because demand is rising, so it is the result of a growing economy. In a healthy economy, wages rise at the same rate as prices. So in a healthy economy, inflation always rises, meaning the same dollar amount is worth less five years from now. Sounds pretty healthy, doesn’t it? Inflation hurts interest rates because lenders know the longer it takes you to repay the loan, the less the money is worth.
Today, I walked into a coffee shop and saw a friend I hadn’t seen for years. We sat down with our coffees and started “catching up.” When he asked me what I did for a living, I told him that I sell annuities. “I help people create their own private pensions, their own’ paychecks for […]
Variable annuities allow the owner considerable flexibility to invest annuity premiums in any way they see fit. The risks involved are the same as investments in stocks, bonds or mutual funds. The investor gets to keep the entire profit from gains and is liable to bear the loss for any decline in the price of invested holdings.
Annuities offer many options for retirement income. Annuity contracts offer numerous options to receive your accumulated funds as retirement income. Most of these options can be for a specific period and can provide you with income for your lifetime or your beneficiary’s lifetime. Understanding how these income options work and what available income can […]
The origin of annuities can be traced to the founding of the United States of America. The first recorded use of annuities was by the Presbyterian Church who used annuity concepts to provide for widows and retired ministers. Benjamin Franklin used annuities to provide for funds over a long period of time for his wife and for the cities of Boston and Philadelphia.
Many retirees understand they should be protecting a portion of their retirement nest-egg from losses due to market volatility. But what other factors exist that can cause your account value to drop and how much should you convert into “Safe Money”? A market downturn is one of the first things most people fear when it […]
I often wonder to myself, “why more people are not securing their retirement with a guaranteed income?” All of the aspects for a happy retirement are there – guaranteed income, safety, security, no market risk, possible LTC benefits, and peace of mind. Take a look at this quote from the Financial Research Corporation: “Our […]
Annuities are currently the only financial tool available to provide guaranteed income for life without exposing your wealth to risk and volatility. An annuity’s guarantees and customization options can create income streams for life and help pay for long-term care-related expenses such as assisted living, home health care, and other costs not covered by […]
“Fixed index annuities have some benefits that may make them the perfect choice to help you ride the economy’s ups and downs with more confidence.” Bill Duggan To say the economy has been unpredictable lately is an epic understatement. There seems to be no place to safely park your savings that will give you some […]
As the old saying goes, “You can’t argue with success.” Indeed, the securities markets (stocks, mutual funds, etc.) have been wildly successful recently. Since the catastrophic Covid drop of March 2020, the “market” has grown by 113% as of 12/31/21. Think about that a minute, if your retirement funds were tied to the S&P 500 […]