Are Annuities Safe?

 

Annuity plans provide a 100% guarantee of principal, backed by the financial strength and assets of the companies that underwrite them. Also, annuities have a fixed minimum interest rate (usually 2%) which is guaranteed for the lifetime of your annuity contract.
 

This represents a major advantage over:

• Stocks
• Bonds
• Mutual Funds

which provide no such guarantee!

 

Fixed Indexed Annuity (FIAs)

In order to retire comfortably, you will have to plan with the intention of outpacing the rate of inflation. So even though you may want to plan conservatively, you have to stay out of the trap of planning too safely. The trick is to choose a retirement planning vehicle that places your money into something that gives you stock market-like gains without stock market risk, such as a fixed indexed annuity. This doesn’t guarantee instant rewards, but history has shown that these fixed indexed annuities can provide you with great potential for growth.

 

There has never been a better time to buy fixed indexed annuities. While some agents and consumers have been disappointed in the returns from fixed indexed annuities over the past year, the potential for very good returns are there in the future, particularly with those fixed indexed annuities that have an annual reset feature.

 

If you own an annual reset structured annuity, they not only didn’t lose money – because annual reset FIAs treat down years as years without growth, but previous credited gains were locked in. And when they start calculating the gain for the next year, they’ll start at today’s (hopefully) depressed level. This is the type of market that proves the value of the indexed annuity.

Some analysts believe the market has hit bottom. That may or may not be true. However, it makes no sense to sit on the sideline waiting for the bottom, you may have already missed the bottom and now are missing potential gains. Call us today and learn how we can help you.

 

Call us today at (248) 363-8551 or (800) 775-1753 to learn how we can help you improve your financial life.