Annuity Options In Atlanta
With the recent downturn in the Stock Market many Americans are searching for safe money investment strategies. In record numbers they are turning to annuities to provide that safe moneyhaven. Fixed index annuities offer some of the gains of the Stock Market with complete safety of principal, an offer that is exremely attractive to many soon-to-be retirees. Sounds great, right? NOT SO FAST.Several consumer advocates caution against the purchase of annuities for retirement. In this article we will give you five reasons NOT to buy an annuity product.
Reason #1
Annuities are extremely complicated insurance products that have very specific purposes, and if purchased for the wrong reason CAN wreck your retirement portfolio. Some annuities are built to pay out an immediate, retirement income. Some are meant for tax deferred savings and other tax strategies, and still others are specifically designed to provide a guaranteed lifetime income stream. Match your specific needs with the wrong annuity option and your retirement could face some severe consequences.
Reason #2
Anyone who is licensed to sell simple Term Life Insurance can sell you an annuity. This fact holds true in most states. Refer back to Reason #1 and think about the consequences. Do you really trust the salesman that sells you your car insurance with your retirement planning? Probably not. Any consideration for the purchase of any annuity product should be made with the help of a licensed professional who specializes in annuities. Many captive agents boast the best annuities, but understanding just one or two products is just not going to cut it.
Reason #3
Annuities have surrender fees associated with most contracts. Again, you need to speak with a licensed professional annuity specialist and make sure YOU READ THE CONTRACT where it specificallytalks about the fees associated with early withdrawal. Do not be caught off guard, and take someone's word for it. Make sure you see IN WRITING how your specific annuity deals with these fees. Annuities may or may not be a correct fit for your particular circumstances.
Reason #4
One size does not fit all. I recently had a friend in the insurance business refer me to a potential client and say; “I need you to put together an annuity retirement plan for this lady. She has $600,000 invested in stocks that needs to be invested in annuities. Put together a plan, and call her.” My response was - NOT SO FAST! First off, annunities might not be a fit for this particular client. Before any of my staff will make any suggestions they must first gather all the facts and have several in-depth consultations with this client to make sure of first what she needs and second if we can help her? thirdly, if we can, then to recommend a possible solution. Compliance with insurance ethics and regulations is always a must. Putting together a quick annuity quote is simply not possible. Do not be pushed into quick fixes when contemplating annuity options.
Reason #5
With some annuities you CAN LOSE YOUR PRINCIPAL. Most annuities boast safety of principal as one of their main features, but there are some annuities that are ties to stock market investments and can lose value. Those are known as Variable annuities, or VAs. Also, with Index Annuities one could lose principal, for instance, if the principal was withdrawn prematurely and was subjected to surrender fees.Again, the burden is placed on the consumer to understand what she / he is purchasing and to make sure that the vehicle fits the need.
So, where do you fit into the annuity picture? Is an annuity the right fit for your portfolio, or will it spell disaster? Before you consider any annuity purchase you owe it to yourself to speak with an annuity specialist. At Axis Financial Solutions, LLC we have licensed experts who understand annuities and can educate you on all the details and pro and cons of annuity products. If it looks like an annuity or group of annuities may fit your needs, they can then recommend the best annuity for your particularsituation.
Take a look at our website at www.talkaboutannuities.com, or give us a call at 1-800-706-5645 and speak to one of our annuity specialists. You owe it to yourself to get all the fact and then make an educated decision based upon your specific needs.
