own deductive thinking. I had a conference with a handful of our affiliated agents last
week. Among the agents said, “Carter, if people actually comprehended the mechanics of
an Equity Indexed Annuity, everyone would buy one!” I informed him he was
definitely dead on. If folks really made the effort with an open mind to think for
themselves and examine the realities, there is no question more folks would be
preaching the news of Equity Indexed Annuities. Right then, another agent spoke up
and said, “The issue is that as insurance representatives, consumers take a look at us like utilized automobile
salesmen attempting to offer them a car with sawdust in the engine.” The function of this
article is breakdown a few of the misconceptions of annuities, toss a few realities on the
blackboard, and inspire you to think on your own.
First, let’s start with your current plan for monetary self-reliance and kick the tires of
your current nest egg. At this time, I would like you to grab a pen and, either on the
back of this post or on a different piece of paper, address these questions:
1. What are the existing charges you are paying to have your income handled? (And I.
mean whatever, not simply the “management cost,” however also the administration costs,.
fund charges, deal charges and other expense charges.).
2. What is the typical rate of return and the actual rate of return since the.
creation of your account? (If you do not know the distinction, please stop and.
read page 41 of “The Retirement Miracle” by Patrick Kelly. The book is readily available.
totally free on my website at www.pacinsgroup.com.).
3. What will your projected Social Security benefit be and what portion of your.
nest egg do you intend on spending per year when you retire? (For example, 5%,.
4. Just how much of your savings are you happy to lose? What guarantees does your.
existing retirement plan have to protect you from market losses when the next.
What are the current costs you are paying to have your money handled? (And I.
mean everything, not just the “management fee,” but also likewise administration feesCosts.
I don’t believe so! The point I am trying to make is to look at the facts on the blackboard! What item do you feel suits you finest?
I feel there are 4 major benefits when it pertains to Equity Indexed Annuities.
1. Security versus principal loss. Significance: if the index decreases, you.
don’t lose a penny.
2. The power of the annual reset function. This allows you to secure gains.
every year the index is positive!
3. Low or NO management charges.
4. Guaranteed earnings for life (with the warranty income rider).
At this moment you may be thinking, “Well, if this is such a fantastic place for me to put.
my hard earned cash, why haven’t I found out about it?” This is probably my favorite concern consumers.
ask, because I get to respond back with, “Where would you hear about such a.
item?” Wall Street? Nope! Your financial consultant who takes place to be under the.
impact of Wall Street? No! Your CPA? I don’t think so! It is too risky for them to step.
out on this branch from a liability side since they are not insurance coverage or securities.
certified. The point I am attempting to make is to take a look at the truths on the chalkboard! It is.
not about me, Wall Street, the monetary advisor, CPA, or anybody else. It is about what.
is finest for you! What item do you feel suits you finest? Often, it’s a range of.
strategies depending on folks’s danger tolerance.
The greatest worry of senior citizens is outliving their funds. In the past, consumers could survive on.
social security and interest on their cost savings due to the fact that the rates of return remained in the.
double digits. With the existing 1% or 2% rates of return, there is a strong possibility.
that you will need to attack the principal of your savings. This could show to be.
disastrous if you live to long. Just how much of your cost savings should you diminish each year.
to maintain a standard of living that is acceptable to you? Yes, there are surrender.
charges with annuities, however this normally applies if you take more than 10% annually.
How many people are going to invest more than 10% per year of their qualified.
In conclusion, where can you get the capacity for an inflation-beating return and have.
100% defense against market threat of not only your principal, but likewise of all your.
previous years of gains? For the past 12 years, our clients have actually enjoyed the.
warranties annuities offer, together with the upside potential of market indexes.
Now, after you look at your answers, if I show you an item that does not charge you.
a management cost out of your pocket and will have the exact same typical return and.
actual return; an item with which you can use up to 10% each year with no surrender.
penalty and provides you upside prospective to the marketplace without any drawback direct exposure,.
would that be something that might interest you?