Variable annuities and fixed annuities are very different creatures. Fixed annuities earn a set rate of interest for a specific time period. Variable annuities invest your funds in separate accounts (sub accounts) that invest in securities such as stocks and bonds, etc. Each separate account will offer specific investment objectives, you select the accounts that will best help you reach your goal. Here are specific points to understand before investing in variable annuities.
I believe in full transparency when presenting solutions to my clients for their goals and needs. There is no one perfect product for everyone, and so we need to do a complete fact-finder to find the right product to satisfy the situation. Sometimes there is no solution that I can offer, and I will state [...]
The lingering question about the success of variable annuities as a sales vehicle is on the surface difficult to understand. By examining it closely and using the “new car” concept of selling, the focus is on the allure, the new paint, the transformation of us as drivers being behind the wheel and on it goes.
Many financial advisor sales pitches begin verbally and as the broker or agent explains the benefits of their product, it can begin to sound way too good. Here are a few tips to protect you:
A guarantee or a guess, which would you choose? Guarantees or a future guess, which would you choose? Annuities are annuities. The term annuity, when used as a noun, can mean two entirely different products. According to Investopedia, the definition of an annuity is: An annuity is a contractual financial product sold by financial institutions [...]
Baby Boomers can benefit from these myths and truths. Myths and Truths about Annuities We all remember stories from our childhood which turned out to be nothing more than a myth. There are several categories of these stories; of course, there is the truth, but also legends, folk tales, and superstitions. When it comes to [...]
What Your Broker Doesn’t Want You To Know About Variable Annuities Disclaimer: In the early part of my career, I was licensed to sell variable annuities; I no longer maintain my securities license. The article below is gleaned from a wide array of information available to anyone; all you need to know is where to [...]
When is an egg not an egg? Often, we hear about annuities and how many fees are “hidden” within them. So why would anyone consider an annuity? Annuities come in 2different sizes, those sold by stockbrokers (variable annuity) and those sold by insurance agents (fixed annuities). Annuities sold by stockbrokers are security products, annuities [...]
Having weathered the economic crisis in 2008 with most of their value intact, fixed rate annuities have become the standard for retirement savings. Variable annuities, on the other hand, try to accomplish more than that. Higher Risk investments may generate more income for the annuity holder, but this income can be reduced by the fees charged for maintenance of these accounts. In addition, if the market loses money, your account value decreases with it and fees still are charged on your variable annuity.
Finra and annuities