iXray Annuities

Why a fixed index annuity might be a good fit

Fixed Indexed Annuity Article

For starters, annuities are not right for everyone.  Variable annuities are almost never appropriate.  With that said, this post is about Why a fixed index annuity might be a good fit.

There are many resources on the Internet.  This one is an ad on a TV station’s website.  http://www.kvoa.com/story/32402529/fixed-index-annuities-right-for-your-retirement-plan.

The ad seems to be pretty legit.  It is however an ad.  Be careful when researching annuities and the comments you receive.  Some people swear by annuities and some people swear at them!  I’m neither – I look to see what the client needs, what are their concerns, what gaps exist and how to fill or close those gaps.  When people hear this – the feel reassured.

If you could see a plan that took your concerns and gaps into account, would that help you?

This ad that I am sharing talks about four aspects of Fixed Index Annuities.  1) locking in gains, 2) Growth for income, 3) protected from retirement challenges, 4) Your money lives on.

First of all – the ad is missing tons of disclosure and disclaimer.   The ad also makes or eludes to a promise “all”. In California all ads must include the producers California Insurance License – minor, yes.

Who is making the guarantees?

Who is Horter Investment Management and why are they mentioned?

Why a fixed index annuity might be a good fit

Why do I think a Fixed Index Annuity may be a good fit?  Similar points that the ad is making.  There are guarantees to these products.  The guarantee is backed by the strength and claims paying ability of the issuing insurance company.

Compliance – huge concern in my view.  There are so many people peddling product who don’t produce an actual plan.  We pride ourselves in producing plans that show our confidence or lack of confidence in your retirement.

If you would like a plan and not a product peddler – give us a shot!  Call our office or schedule a call here:  https://calendly.com/rickloek – I look forward to speaking soon.

Our office number is 408.459.8383

Fed Rate Increase good for Fixed Index Annuities

Fixed Index Annuities received good news this week.  The fed raised interest rates by .25%.  The increase might seem tiny at first.  When you begin to understand the underlying structure of fixed index annuities you will realize how important interest rates are.  Fed Rate Increase good for fixed index annuities – would you like to learn about the inner workings of fixed index annuities?

There are two types of annuitiesFixed Indexed Annuity Article

There are variable annuities and fixed annuities.

Fixed Annuities

Fixed annuities guarantee your investment, the actual premium you use to purchase the contract.

Variable Annuities

Variable annuities do not protect the actual principal or premium. Variable annuities have sub-accounts that are in reality mutual funds.  These products also have additional fees that are often hidden inside of the contract. If you own a variable annuity we can help you understand the inner workings.  Some people want to escape from variable annuities, we may be  able to help you do that.

If you have additional questions, please give us a call.  Mention you read about annuities on our iXray Annuities website.

Our phone number is 408-459-8383 or email me rick dot loek aht calrima.com <<trying to keep the bots from scraping my email>>

Read more about the impact of rate changes on fixed annuities

Variable Annuities Suck

Yes, I said that out-loud and in print! Variable Annuities Suck!  Ken Fisher says, “should not be legal as they currently exist,”  I tend to agree with Mr. Fisher on this.  When people ask me about the Department of Labor (DOL) fiduciary standard that is being suggested I say, “I welcome it.  In doing so, in my opinion, variable annuities will be removed from the market!”  I get an odd look from people.  “Why is that?”, they say.  Because I have not seen one that lives into the fiduciary standard.  If the standard in very simple terms means that you will only and always do what is in your client’s very best interest – variable annuities fail this test.

How can ALL VA’s fail?

Picking a bad annuity is like burning money
If you don’t know what you are getting you could be burning money

How can an entire class of annuities fail the fiduciary test?  Simple, if there is another product that better fits a clients needs, then it *must* be used.

FAIL!

When a variable annuity and a fixed index annuity (FIA) start at the same time and sit for the same period of time (say 10 years) I have yet to see a variable annuity that beats the best FIA.

When talking about all VA’s I’m excluding liquid VA’s on the Registered Investment Platform.  They won’t win many races, but they fill on void.  That void is reduced fee products to store investment assets that simply aren’t needed for income or that want to avoid taxation during your lifetime as well as can be moved in and out of assets (sub-accounts).

I hope to not offend anyone who owns a variable annuity, only those who blindly sell them.  I get it, you were trained to believe they are good.  Time for new training.

If you own a variable annuity and want support in exiting the annuity, call us.  We’ll in vest a little time in you if you’ll in vest a little time too.  Our office number is 408-459-8383.  Ask for Rick and say you want to stress test your variable annuity.

NEVER!

This article attempts to remove the sting (or stink) Ken Fisher is leaving.  I quote, ‘Tarnishing all annuities over some bad sales practices is “ridiculous,”‘ Milevsky says.  Well, how are bad sales practices ever good?  I realize I am throwing the baby out with the bath water.  I have never had a client in the office who was sold a variable annuity who could tell me exactly how it worked, what fees they pay and how the “insurance agent” who sold it to the was paid and likely continues to be paid.  NEVER!