Why You Should Buy Annuities
So Why Do People Buy Annuities?
Most people have heard varying opinions concerning the reasons for and against the use of annuities for retirement planning. Sometimes it helps to have some facts that show why other people buy annuities and why they have chosen this route in the past.
According to LIMRA (Life Insurance Marketing Research Association) there four major reasons why people buy annuities. In order of importance and popularity those are as follows:
Safety– Annuities offer an unmatched level of security that attracts people with various objectives. Insurance companies carry very low or non-existent leverage ratios in comparison to their banking counterparts and are required by law to hold substantial reserves that further insulate the conservative investment portfolios from market shock. Throughout history there a very few cases of consumer losses associated with insurance company failure. To further mitigate any potential damage, each state has a guaranty association that provides an ultimate backstop to cover claims when an insurer goes insolvent. Many additional safeguards exist that contribute to overall safety. For a detailed discussion of these safety features, contact our office at 800.438.5121 or make an appointment via the website.
Tax Deferral– Most people recognize the importance of planning for the eroding forces of annual taxation on investment. It is also well-known that annuities offer tax deferred growth on investment that makes them preferable to many alternate safe money financial vehicles. Our website has several retirement and annuity calculators that clearly illustrate the differences between taxable and tax deferred growth. Visit AnnuityStraightTalk.com to run some comparisons and see if tax deferred annuities can make a meaningful impact on your retirement savings.
Guaranteed Income– Several types of annuities offer a quality source of guaranteed lifetime income. Whether your need for income is immediate or a few years away, it’s worth looking into the incredible benefits annuity contracts can bring.
Securing a source of guaranteed income is the first step toward optimizing a retirement portfolio. It cannot be done otherwise… period! Look for a more detailed discussion of this in subsequent emails and feel free to call our office (800.438.5121) to discuss how available products and strategies can benefit your retirement income plan.
Rate of Return– That seems odd, doesn’t it? But that’s right, rate of return is the fourth leading reason people buy annuities. While it is true that the rates offered with annuity contracts is competitive in any environment, it is actually the safety, tax deferral and guaranteed income benefits that are higher ranked according to consumers.
When it all comes down to it, the previous benefits hold much more value to people who harbor uncertainty after years of mixed results in the market. That may or may not represent your focus so if you’d like to talk about not only the return on your money but also the return of your money, call our office now. 800.438.5121
No matter what benefit appeals to you most, this shows reasons why people have seen the advantage of making insured products a vital component of retirement portfolios. If one or more of these sounds like something you can use, perhaps it’s time for a serious discussion.
Choosing the right product can be a challenge so we created The Annuity Report to make it easier to understand available contracts and find one that meets your needs. Add to that the fact that your individual situation is unique and you can easily see that an objective suitability is necessary to show how your personal finances will benefit from guaranteed products.
When you are ready to buy annuities, please call or set an appointment.