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Fixed Annuities: Safe Investments During Volatile Times.
The other day, I took a long hard look at someone's 401K Plan.
As of December 2007, their diversified portfolio was at $300,000.
Over the last several months, I observed a steady up and down flow, which resulted in an overall 18% decline (loss) in their account value.
Fortunately, this person was not ready to retire and had diversified their portfolio between various growth, aggressive and safe funds. My advice to them was to keep a close eye on everything, while weathering the storm. Eventually, based on the 3, 5 and 10 year fund performance, I felt that they would be in good shape to fully recoupe any losses, and experience portfolio growth, prior to their retirement in 10 years.
HOWEVER: Not everyone is in this same situation.
Most Financial Advisors Recommend:
Placing a Portion of Your Portfolio, basically the same % as your current age, in Safe Investments. This is sound advice, which owners of IRA's, 401K's, 403B Accounts, etc., should use when selecting funds within their plans.
Those who have even more flexibilty, outside the investment constraints of an established/qualified plan, may want to consider a Fixed Annuity:
A Fixed Annuity can be a good choice for Rollovers and establishing a Non-Qualified Plan.
For those of you considering a Qualified Pension Plan Distribution,
a combination of an Immediate and Fixed Annuity, via Laddering, can be a very good choice.
An Annuity, is simply a Savings Plan offered by an Insurance Company.
Key Advantages of a Fixed Annuity.
1. Safety: Protects Your Principal, Deposits, any applicable Cash Bonuses and credited Interest Income, against Loss.
2. Some Fixed Annuity Plans offer "Free" Cash Bonuses on Deposits. This can be a very good financial feature, especially if you are trying to offset prior investment/portfolio losses.
3. Fixed Annuities offer: Tax Deferred Savings:
There is no tax liabilty until you start making withdrawls.
This also allow you to earn interest income on your tax deferred savings.
4. Liquidity Options:
Besides the availabilty of 10% of your accumulated value at age 50 1/2, without penalties, and the Minimum Distribution Requirement at age 70 1/2, established by our friends at the IRS, some plans offer additional withdrawl options such as Nursing Home Provisions.
5. Legacy:
Establishes Beneficiaries and for the most part eliminates the need for probate and any associated court costs.
Some Key Points:
1. Please make sure that you are fully aware and understand the applicable Surrender Charge Tables within your plan.There are ways to avoid these charges, as listed in Liquidity above.
Make sure that you will not need full access to your account, until the end of any applicable Surrender Charge periods.
( If you do, then you may want to consider other options, such as an Immediate Annuity or Laddering.)
2. PLEASE:
Make sure that you are dealing with a reputable and knowledgable Broker,who has your best financial interests in mind, and Not the Insurance Carriers.
In Addition, Always research an Insurance Carrier: Easily done online. Look at their Financial Ratings, such as Standard and Poors, A.M. Best.
One key question to ask your Annuity Broker is:
Would You Personally Invest Your Own Money with this particular Insurance Company ? If they hesitate, or stumble: Move on to someone, or something else.
--------------------------------------------------------------------------
For Additional Information, please feel free to visit our website at:
http://cashbonuses.9f.com
WE ADHERE 100% TO THE INFORMATION POSTED ABOVE.
AND: Work Exclusively for Our Clients.
As of December 2007, their diversified portfolio was at $300,000.
Over the last several months, I observed a steady up and down flow, which resulted in an overall 18% decline (loss) in their account value.
Fortunately, this person was not ready to retire and had diversified their portfolio between various growth, aggressive and safe funds. My advice to them was to keep a close eye on everything, while weathering the storm. Eventually, based on the 3, 5 and 10 year fund performance, I felt that they would be in good shape to fully recoupe any losses, and experience portfolio growth, prior to their retirement in 10 years.
HOWEVER: Not everyone is in this same situation.
Most Financial Advisors Recommend:
Placing a Portion of Your Portfolio, basically the same % as your current age, in Safe Investments. This is sound advice, which owners of IRA's, 401K's, 403B Accounts, etc., should use when selecting funds within their plans.
Those who have even more flexibilty, outside the investment constraints of an established/qualified plan, may want to consider a Fixed Annuity:
A Fixed Annuity can be a good choice for Rollovers and establishing a Non-Qualified Plan.
For those of you considering a Qualified Pension Plan Distribution,
a combination of an Immediate and Fixed Annuity, via Laddering, can be a very good choice.
An Annuity, is simply a Savings Plan offered by an Insurance Company.
Key Advantages of a Fixed Annuity.
1. Safety: Protects Your Principal, Deposits, any applicable Cash Bonuses and credited Interest Income, against Loss.
2. Some Fixed Annuity Plans offer "Free" Cash Bonuses on Deposits. This can be a very good financial feature, especially if you are trying to offset prior investment/portfolio losses.
3. Fixed Annuities offer: Tax Deferred Savings:
There is no tax liabilty until you start making withdrawls.
This also allow you to earn interest income on your tax deferred savings.
4. Liquidity Options:
Besides the availabilty of 10% of your accumulated value at age 50 1/2, without penalties, and the Minimum Distribution Requirement at age 70 1/2, established by our friends at the IRS, some plans offer additional withdrawl options such as Nursing Home Provisions.
5. Legacy:
Establishes Beneficiaries and for the most part eliminates the need for probate and any associated court costs.
Some Key Points:
1. Please make sure that you are fully aware and understand the applicable Surrender Charge Tables within your plan.There are ways to avoid these charges, as listed in Liquidity above.
Make sure that you will not need full access to your account, until the end of any applicable Surrender Charge periods.
( If you do, then you may want to consider other options, such as an Immediate Annuity or Laddering.)
2. PLEASE:
Make sure that you are dealing with a reputable and knowledgable Broker,who has your best financial interests in mind, and Not the Insurance Carriers.
In Addition, Always research an Insurance Carrier: Easily done online. Look at their Financial Ratings, such as Standard and Poors, A.M. Best.
One key question to ask your Annuity Broker is:
Would You Personally Invest Your Own Money with this particular Insurance Company ? If they hesitate, or stumble: Move on to someone, or something else.
--------------------------------------------------------------------------
For Additional Information, please feel free to visit our website at:
http://cashbonuses.9f.com
WE ADHERE 100% TO THE INFORMATION POSTED ABOVE.
AND: Work Exclusively for Our Clients.
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