If you watch TV, especially in the daytime, you might be familiar with Fisher Investments. Ken Fisher built his empire by saying “never buy annuities.” He has inferred that ALL annuities suck!
Ken was probably referring to variable annuities, which can have high annual fees. Just like anything else, there are good products and bad products. An independent advisor’s job is to decipher products and make suitable recommendations accordingly. When someone wins the lottery, they are usually given 2 choices, lump sum, or annual payments. Annual payments are almost always a better deal for the winners, and they are a form of an annuity. Does that suck, I would think not!
October is known to be one of two months (April is the other) when most CD’s (Certificates of Deposit) mature. This is because many people received their tax returns in April and bought 6-month CD’s. Fixed annuities are an excellent alternative to traditional CD’s. Not only are higher interest rates available from insurance companies, annuities have ancillary benefits and ways to access the money with no penalties or fees. If CD owners withdraw ANY money from their CD’s, they forfeit ALL their interest. Also, many people do not know that fixed annuities are backed by New York State up to $1,000,000 whereas the FDIC (Federal Deposit Insurance Corporation) standard insurance amount is $250,000 per depositor, per insured bank, for each ownership category. CD rates are so low currently, some people refer to them as CERTIFICATES of DISAPPOINTMENT!
See below for 12 advantages to owning fixed annuities:
NOTE: life insurance cash values are also protected from creditors.
NOTE: Life insurance is the only other financial instrument where you can receive a “guaranteed income for life.”
NOTE: New York State and New Jersey have the highest state-protection limits in the country at $1,000,000 and $500,000 respectively! For more information on this refer to www.Annuity.Org.
Despite what Ken Fisher says, annuities should be a part of most people’s portfolios based on the 12 advantages above. For more information or questions on annuity products, feel free to reach out to me at Rob@InsuranceDoctor.us. KEEP THE FAITH!