You may ask yourself, how do I work this? You may ask yourself, where is that large automobile?
You may tell yourself, this is not my beautiful house You may tell yourself, this is not my beautiful wife.
-Once in a Lifetime, Talking Heads
The Ideal Annuity?
Let’s face it, the prospect of shopping for annuity rates has all of the appeal of jury duty on a beautiful summer day. Who wants to compare annuity rates when you could be playing golf? But picking the right annuity is just as important as working for forty years to insure you have something to put away for retirement. Making the wrong decision can make those forty years vanish in a heartbeat.
The right annuity can make the difference between you going broke shortly after retirement or having enough to leave for your children or even grandchildren.
Fixed Annuities Study
by the Wharton Financial Institutions Center
The Wharton Financial Institutions Center from the prestigious Wharton School (of Business) at the University of Pennsylvania released a study providing the first empirical exploration of fixed indexed annuity returns based upon actual contracts that were sold and actual interest that was credited on those contracts.
The study includes the following findings, none of which should be surprising:
A CD is available from your bank and pays you a specific interest rate over a certain number of years. A Fixed Annuity is a contract with an insurance company and it too pays a specific interest rate over a certain number of years. For the purposes of direct comparison our example will deposit a single lump sum of $50,000 into both a Fixed Annuity and a bank CD, for a 5 year period, with both the Annuity and the CD paying an annual 3% interest rate.
Many times our clients will want to know who is most popular company that offers fixed index annuities. Of course we are glad to share that information. An independent third party report from annuityspecs.com Indexed Sales & Market Report 1st Quarter, 2010 shows that there were 6.8 billion dollars of index annuities purchased in 3 months from January-March of 2010.
Long term care is the type of care you may need if you have a prolonged physical illness, disability or severe cognitive impairment (such as Alzheimer’s disease) that keeps you from living independently.
Here are some very important things to consider when meeting with your financial advisor and planning you long term care:
An annuity is a contract with an insurance company. The insurance company agrees to provide a stream of income to the individual in exchange for payment. The holder of the annuity cannot outlive the regular income from the investment which makes this attribute especially unique. Therefore, annuities are used as an asset to fund retirement.