golden rule
RULE 1: Annuities are insurance.

RULE 2: One or more risk factors are transferred to the insurance carrier, in exchange for your premium investment.

RULE 3: What you buy is an insured outcome, contractually guaranteed by the carrier.

 

Therefore, to choose annuities, all you need to do is this:

Step One: Understand your needs so you can define the outcome you desire.  What risks do you want to transfer to an insurance carrier?

Step Two: Use a true professional as a guide.  Your guide should make all options and carriers available to you, and be able to show you how your needs are met or missed with any annuity contract you’re considering.

Step Three: Act on your knowledge and make that confident, informed decision.

A true professional will not gloss over credit risks, and will address the pros and cons or any strategy, and you will know fully what you are getting before you spend a dime.

So once your decision is made, you can relax.  Insurance companies and their annuity contracts do what they say they will do.  There is a remarkably low failure rate in the insurance industry…. very few carriers took TARP or bailout dollars…. annuity carriers are great at conservative investment, and they often stick together to promote industry strength.

In short, annuities are safe, and above all, life insurance companies (the primary issuers of annuities) know how to manage money, they pay their obligations, and they know the mortality tables inside and out.  They know the statistics, and plan accordingly.

You can be on the winning side of those statistics, with a good yield, great safety, and peace of mind along the way….. if you do it right and use the right professionals to help you.

To paraphrase Churchill, annuities aren’t a riddle, wrapped in a mystery, inside an enigma…. They’re not ‘good’ or ‘bad’. They are just a tool.  And they can be a very powerful tool….

Click On To Understand Annuities As Tools….