We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (21,155)
  • Industry Conferences (2)
  • Industry Job Openings (35)
  • Moore on the Market (414)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (800)
  • Wink's Articles (353)
  • Wink's Inside Story (274)
  • Wink's Press Releases (123)
  • Blog Archives

  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • Response: Retirement: Live Long and Don't Prosper

    March 13, 2011 by Sheryl J. Moore

    PDF for Setting It Straight with Bloomberg Businessweek

    ORIGINAL ARTICLE CAN BE FOUND AT: Retirement: Live Long and Don’t Prosper

    Dear Mr. Steverman,

    I am an independent market research analyst who specializes in the indexed annuity and life markets. I have tracked the companies, products, marketing, and sales of these products for over a decade. I used to provide similar services for fixed and variable products, but I believe so strongly in the value proposition of indexed products that I started my own company focusing on IAs and IUL exclusively. I do not endorse any company or financial product, and millions look to us for accurate, unbiased information on the insurance market. In fact, we are the firm that regulators look to, and work with, when needing assistance with these products.

    I recently had the occasion to read an article that you authored for Bloomberg Businessweek, “Retirement: Live Long and Don’t Prosper.” This article had some misleading statements in it and reflects poorly on Bloomberg Businessweek it is for this reason that I am contacting both you and the paper’s editors, to ensure that appropriate corrections can be made to this article. I am also reaching-out so that you can have a reliable source for fact-checking information in the future.

    Initially, there are three questions that must be answered, when looking into what type of annuity is right for you:

    1.      What level of market risk am I willing to assume with the annuity?

    a. If more concerned about a high minimum guarantee, regardless of the lower level of interest accumulation, consider a fixed annuity.

    b. If willing to accept a lower minimum guarantee than a fixed annuity, but looking for potentially greater interest accumulation, consider an indexed annuity.

    c. If willing to accept no minimum guarantee, in exchange for the possibility of unlimited interest accumulation, consider a variable annuity.  

    2.      How soon will I be taking income?

    a. If within the first year, consider an immediate annuity (offered in fixed, indexed, and variable types).

    b. If it is further in the future, consider a deferred annuity (offered in fixed, indexed, and variable types).

    3.       How many premium payments will I be making?

    a. If only a single payment, consider a single premium immediate annuity or a single premium deferred annuity.

    b. If making more than one payment, consider a flexible premium deferred annuity.

    Overall, an annuity is merely a contract where an individual agrees to pay premiums to an insurance company and receives in exchange, a regular stream of income payments from the issuer- either now or at some time in the future. Annuities can be purchased with as little as a $1,000 lump sum premium, or $50 per month. It is so important for Americans to realize that an annuity is THE ONLY financial services product which can guarantee an income that the purchaser cannot outlive. Deferred annuities provide the option for guaranteed lifetime income via annuitization and Guaranteed Lifetime Withdrawal Benefits (GLWBs) after the initial annuity purchase, where income annuities (sometimes referred to as ‘single premium immediate annuities,’ or SPIAs) provide immediate guaranteed lifetime income. Income annuities offer many different choices (or payout options) such a straight life, life and period certain, or joint and a percentage to the surviving spouse. Each payout option has its advantages and disadvantages.

    Not all annuities have “costs” the way that deferred variable annuities do. Income annuities as well as fixed and indexed deferred annuities specifically have no explicit costs. The “cost” that the client pays on a fixed or indexed annuity is merely time; via a surrender charge. The surrender charge on a fixed, indexed, or variable annuity is a promise by the consumer not to withdraw 100% of their monies prior to the end of the surrender charge period. This allows the insurance company to make an informed decision on which conservative investments to use to make a return on the clients’ premium (i.e. 7-year grade “A” bonds for a seven-year surrender charge annuity or 10-year grade “A” bonds for a ten-year surrender charge annuity). Investing the consumer’s premium payment in appropriate investments allows the insurance company to be able to pay a competitive interest rate to the consumer on their annuity each year. In turn, it also protects the insurance company from a “run on the money” and allows them to maintain their ratings and financial strength.

    Furthermore, annuities do not have to be “complex;” indexed annuities in particular are fairly simple financial instruments. If the annuity purchaser can understand that they have the ability to deposit their money with an insurance company, defer taxes on the monies until they begin taking income, receive 10% withdrawals of the account value annually without being subject to penalties, and have the ability to pass on the full account value to their beneficiaries upon death- then they can understand nearly every indexed annuity sold today.

    There is a tremendous misconception in the media that annuities do not return the monies paid-into the contract, should the annuitant die too early. This is based on the inaccurate belief that all annuities are income annuities with a straight life payout. This is a false generalization. This payout is only one of numerous payout options available on income annuities today. Furthermore, this doesn’t apply to deferred annuities whatsoever. Clarification on this common misconception is due to Bloomberg Businessweek’s readers. Making a decision NOT TO purchase an annuity based on this egregiously inaccurate information could cost readers their retirement.

    I truly appreciate the opportunity to bring this information to your attention, and hope for the sake of your readers that note will be taken of these misstatements and generalizations. Please let me know if I can be of assistance to you in the future, should you have any need for fact-checking or resources on annuity products.

    Thank you. 

    Sheryl J. Moore

    President and CEO

    AnnuitySpecs.com

    LifeSpecs.com

    IndexedAnnuityNerd.com

    (515) 262-2623 office

    (515) 313-5799 cell

    

    Originally Posted on March 13, 2011 by Sheryl J. Moore.

    Categories: Negative Media
    currency