I have been a financial adviser for 31 years, and I could tell you many stories. I have seen a lot in those years. Many promises, few results. From Public Storage Partnerships to guaranteed “tax-free” benefits from Life Insurance policies–yes, I have seen it all.

But recently, working with one of my clients, who is close to retirement and has a substantial portfolio of assets, I was trying to come up with a proposal for her that minimized risk, maximized Guaranteed Income, and attempted to take her assets out of harm’s way.

It is not easy in today’s extremely volatile investment world. The overriding question is: what is safe? Triple A bonds, both corporate and municipal? Not really. Interest rate risk, time value risk, market risk, and probably more, like liquidity risk.

How about safe consistent dividend Blue Chip stock positions? Not really. Again, too much market risk, world turmoil risk, and global competition. Have you heard any stories lately about our old, strong, large “Blue Chip” companies going belly-up? Lehman Brothers ring a bell?

That brings me to the subject of Guaranteed Income Riders in Indexed Annuities. There are simply no peers. This type of annuity income rider has very strong income guarantees, very low fees, and in some cases, no fees. They also have substantial upside growth potential and certainly not least, Liquidity!

With new products in the market that offer Volatility Index options for growth, and substantial guaranteed income, this combination is next to impossible to match in the investment world. When you add the limited, to no cost factor associated with these annuity income riders, they give the Ken Fisher’s of the world nightmares. He claims in his ads he can give you strong returns at a limited cost, and that “we make money, when you do!” Ok, boy, don’t get me started. He and no other financial adviser can match what these annuity income riders can do for retirement. I know that to be true, because I am a Financial Adviser, and one that actually tells the truth!

In today’s market place, everything has risk. To try to put together a portfolio that even mitigates risk is very challenging. Case in point, Oil! Did anyone, and I mean anyone, predict what just happened to the price of oil? How about bonds and bond funds? Have you read anything recently about the “Godfather of Debt”, Bill Gross? He supposedly put $700 million of his own money into his new fund at Janus, but conveniently forgot to tell the investing public about it, so it seemed like many investors were stampeding into his new fund. But not so fast, Bill!

The Insurance industry often gets beaten up by the press for playing fast and loose with facts. The fact is these annuity income riders are ideal for retirement, especially for people that don’t want to take risk. When you consider the feature of growth with little to no risk, indexed annuity riders cannot be compared to the rest of the investment world.

If you haven’t looked at these options recently, you need to! Make sure you talk to an expert in the field, i.e. Me! Don’t be hoodwinked by so-called advisors that have their own agenda. You need to objectively review all choices so you can see what is right for your specific set of circumstances. Everyone’s situation is unique and only an experienced expert can guide you through the pros and cons of annuities.

Recent Posts

Leave a Comment