Some Secrets to Understanding Annuities

Some Secrets to Understanding Annuities

Below are 3 annuity questions and the answers that I've recently discussed with clients.

Q.  All Annuites work the same, right? 

Mackinac Island

A.  Not at all.  Most people think of annuities like this: I get a payment every month from my annuity for $3,000 and if I die my wife gets 1/2 of that amount or $1,500 per month and when she dies, the annuity dies.

That's how it used to be, but not today.

Today, You can get a payment for $3,000 a month and if you die your wife will continue to get $3,000 per month for as long as she lives and when she dies, any remaining money in the plan will go to your children/beneficiaries.

Since there are 10,000 baby boomers retiring each day, annuities have come a long way to meet those needs.  What we do in our appointment process is show you which one is best for you based on how much safe and secure income you desire.

Because we're independent we can show you many different companies.  Our clients love the learning process of how to retire successfully.

Q.  How come my Advisor didn't recommend annuities?

A.  Perhaps your broker doesn't spend all of his time working just with retiree's.  We have found that most people in retirement don't want their income to go up and down with the stock market.

Yes, people like all the gains of the market but the 55% market loss of  2007-2009 left many people wanting more safety and protecion for their money.  

Most retiree's like predictability and they like knowing that their income will not stop for the rest of their lives.  

Q.  The plan I've developed for myself works as long as the market returns 6% a year as it has for the last 100 years, why should I do your plan?

A.  Maybe you should not.  If you're comfortable taking risk, meaning spending your money as the market goes down, then maybe you're okay where you are.

Our approach works even when the market declines.  If you're comfortable with money in the market, you should have some of it there.  We beleive in protecting your income stream regardless of good or bad times in the Market.

If you have money something to remember is "risk is for those trying to get where you are already", don't mess it up.  Many people if they'll just not lose their money can have all their future income needs met in retirement. 

Successfully Retire.

Cory Payne

Beehive Insurance Retirement Planning Services

cpayne@beehiveinsurance.com

801-685-6860