Is an Annuity Right For You?

Annuity agents will now be held to a new set of standards by the National Association of Insurance Commissioners.

According to InvestmentNews.com fixed annuity contracts will now be subject to the same regulatory compliance as variable annuities.

This means agents will be required to prove suitability for fixed contracts according to an individual’s overall portfolio.  In addition, all agents will be required to complete a specific annuity suitability course in order to continue selling the products.

That’s good news for consumers.  Hopefully that will reduce the number of garbage contracts sold to naive investors.

Read the full article here.

Annuity Scams

The Minnesota Department of Commerce has fined an insurance company for selling annuities with exorbitant surrender charges.

High surrender charges are never in the best interests of a client and the annuity product itself must be proven suitable for a specific individual’s needs.

At Annuity Straight Talk, we have put in place a system of checks and balances so a potential investor can easily differentiate between good and bad contracts.

Read the release here.

Variable Annuities and Conservative Retirement Planning

Several experienced advisors share their ideas for conservative growth during uncertain economic times in this SmartMoney.com article.

Variable annuities with income guarantees are noted as a good allocation for a portion of your assets.

Of course, note my last post regarding the downsides of such products to determine if the benefits outweigh the disadvantages for you.

In any case, some form of annuity is a great way to protect assets and guarantee future income.  It’s definitely worth looking into…

Variable Annuities: Consider The Downside

Business Week just released this article that points out the drawbacks of using annuities for guaranteed income in retirement.

Never forget to consider whether the additional expenses charged for a guarantee are worth the cost.

It all just depends on how much you have, what you need it to do and how long it has to last.  In the end, buying an annuity is an intensely personal decision.

Click here to read the article.

Annuities and Retirement Income–Education Is Critical!

InvestmentNews.com recently released an article that highlights the findings of a study done to see how much retirees know about retirement income products.

Annuities were cited as the third most popular option even though many consumers had little idea of how these products work.

Education is essential to understanding how best to remove risk and maximize retirement income options.

Read the article here.

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