With the advancements in medical care and standard of living worldwide, we are all fortunate to expect longer lives as a result.  On the plus side of more time is the opportunity to do and experience more in life.

From an economic and financial perspective, there are a lot of challenges we face globally.  Failure to prepare for a longer retirement could have serious consequences.

The article I’m recommending this week comes from the New York Times and describes the difficult issues government and social programs face.

The article… The Financial Time Bomb of Longer Lives

Social Security and Medicare are already over-burdened and the majority of retirees aren’t yet participating in the system.  Are benefits safe?  Where will we get the necessary funding to cover the promises these programs have made?

Regardless of what happens with social programs, it is important to control what you can and give yourself the best chance of living comfortably throughout retirement.t

Would safety, tax deferral and guaranteed lifetime income give you additional peace of mind?  Annuities were made to solve problems like this.

For ideas on how you can optimize you retirement income, call or email with questions about escaping the coming Financial Time Bomb.

Bryan J. Anderson

800.438.5121 bryan@annuitystraighttalk.com

Read The Post Here: Longevity Risk In Annuities

I think it’s hard to find a variable annuity that makes sense, but they are very popular- as always, do your homework and call me with any questions!

Read The Post Here: Variable Annuities- Do they Make Sense?

Variable Annuity: Things to Consider

There are three main components to take into account when choosing a variable annuity.  1) Performance of the managed investment account options available to you,  2) Costs and Fees of the managed account and the annuity component of the contract, and 3) the optional riders you select. You may find that the risks to your principal, combined with the costs and fees, outweigh all the potential benefits of the Variable Annuity.

Variable Annuity: Separate Account Performance

Variable Annuities are 'variable' because the principal may be invested directly in the stock market through mutual funds or other managed accounts offered by the insurance company issuing the annuity.   The hope of higher returns makes variable annuities attractive, however these investment accounts  all add layers of risk, and layers of cost, and are the main reason that Variable Annuities ofter under-perform fixed annuities.

Variable Annuity: Administrative Costs

Obviously you will want to find a variable annuity with low administrative fees.  As variable annuities give you the potential for market upside through various investment options, they are more labor intensive for the Insurance companies to manage.  Consequently, their fees may be higher, and are another reason why variable annuities may under-perform fixed annuities.

Variable Annuity: Optional Customization

Variable annuities may also offer various riders so that the owner can customize the annuity to his or her own needs and goals.  As variable annuities have grown in popularity, so have the menu of add-ons and riders available.  Each of these comes with cost, so be careful and don't buy  options you don't need.

Variable Annuity: Where to Get Help

Variable Annuities are securities products, and are sold through broker-dealer networks.  As we do not believe variable annuities offer an acceptable combination of safety, profitability, and flexibility, we do not often recommend them. There are other, more appropriate products however, such as the Fixed Index Annuity, to do offer appreciation upside with the guarantees of an annuity and are worth consideration

Read The Post Here: Choosing a Good Variable Annuity