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
  • Top 3 Annuity Myths and the Truths Behind Them

    October 2, 2012 by Joe Weissman

    By Joe Weissman

    Published October 01, 2012

    When people start thinking about creating a lifetime income, especially those of you with a 401(k) plan, for example, you really start to appreciate when someone else promises to pay you their benefits. By and large, regardless of what you think about the government or the Social Security program—which is expected to run out of money within the next 30 to 40 years if taxes aren’t raised—I think we all feel comfortable believing that when those Social Security benefits begin, that they are guaranteed for the remainder of our lifetimes. That’s a great and very valuable benefit, and you want to make that as big as possible, so it behooves most of us, if we can, to delay those Social Security benefits. Instead of working well into your 70s, consider other vehicles that can complement your Social Security benefits or at least provide you with period certain income until you begin accepting those Social Security benefits.

    Drawing down retirement savings too early…

    Many people follow the old “4% rule.” This is where you position yourself with a “balanced portfolio” of stocks and bonds and withdraw 4% annually for income, and make suitable adjustments for inflation. The problem with this is that nobody seems to ever take out 4% annually on a consistent basis; many times, be it because of a market downturn or an emergency, people find themselves withdrawing 5% to 8%. This will almost certainly lead many folks to run out of money before they pass away. That’s a mistake we’re seeing in surveys and financial records. People just start taking the money out and don’t think about running the well dry. They think to themselves, “I need to withdraw this amount to cover my living expenses and to enjoy myself. I thought this is what retirement was for!” And though that’s a good and nearly universal attitude, it would be foolhardy of anyone not to look towards what lies ahead.

    Now, I like annuities because they serve their purpose: They’ll pay you, guaranteed down to the penny, a series of monthly payments no matter how long you live. When I ask people if they would like to have a guaranteed pension to pay them lifetime income, no matter how long they live, everyone always answers, “Yes!” However, when I ask those same people if they would consider an annuity to complement their retirement portfolio, I usually receive a resounding, “No! That’s just another way for those big corporate insurance/financial companies to steal and control your money!”

    Annuity Myth #1: Annuities are too confusing.

    Many are often left a little confused and surprised when I explain that an annuity works exactly like a company pension or Social Security benefits. You agree to set some of your retirement savings aside, and they agree to provide you with lifetime income from that pool of money (regardless if they end up in “the red” when it’s all said and done as they already made a contractual commitment to you). It’s as simple as that.

    In fact, the more information I provide about annuities to people, the more responsive they are. Not only do annuities provide you with the same type of lifetime benefits as Social Security and company pensions, but they offer the most flexibility (as far as contributions/distributions go) and often provide greater monetary benefits.

    Annuity Myth # 2: The insurance companies always keep the remaining money once you die.

    With the exception of immediate annuities, this is simply not true. To be clear, an immediate annuity doesn’t spend any time in deferral or gaining interest. They provide high guaranteed payments within 30 days of the policy being issued. In exchange for the high guarantee, the income payments cease at your demise.

    However, fixed indexed annuities pass along any and all remaining money in your account, probate free, to your named beneficiaries. Further, your accounts can be set up as “joint life” and provide both you and your spouse guaranteed lifetime payments no matter how long each of you live. And, same as before, any remaining monies still pass probate free to your named beneficiaries.

    Annuity Myth #3: All annuities have high and hidden ongoing fees.

    All the different type of annuities I discussed above have no fees at anytime. The only annuities that have fees are variable annuities, this is because they are an equity product, not an insurance product, and you must pay ongoing fees for managing the equities within the account.

    The only time a fee can be assessed with a fixed indexed annuity is when a rider is added to your policy. There are a few riders available with fixed indexed annuities. For example, a death benefit rider may be added to your policy; this is where they guarantee you a high lump sum payout to your named beneficiary after you pass away. But the most popular rider is the income rider; this is where the insurance company guarantees you a higher interest rate during your deferral period (usually between 4% to 8% annually) for the purposes of receiving lifetime income. Nearly all riders have a fee of less than 0.95% and are always clearly stated upfront and within the policy if you apply for one.

    A great option for your retirement savings…

    If you are near and planning for retirement and/or currently investing in a qualified plan, do yourself justice and look into how the guaranteed benefits of a lifetime annuity can complement your portfolio and provide you with a more certain and secure retirement.

    To learn more about how annuities could be a beneficial strategy to your retirement plan, contact Joe Weissman at (800) 313-PLAN (7526) or Joe@WealthPreservationLLC.com

    Originally Posted at FoxBusiness on October 1, 2012 by Joe Weissman.

    Categories: Industry Articles
    currency