Let's face it, Annuities can seem Ambiguous ...!!!
But that's only because most people do not understand them.
In Fact, we can surgically take the ambiguity out of the annuity and make it a SNAP to understand, IF you know why they were designed in the first place:
Safe. Annuities were designed by Insurance Companies to compete against banks whose customers craved guarantees on principal with growth. Annuities are meant to always be there for you, even when the market is declining, or your health is declining, or the interest rates are declining. By definition, annuities are simply contracts between you and an Insurance Company wherein you receive minimum written guarantees as well crediting strategies that may exceed those minimums.
INcome. Annuities were designed to provide income you cannot outlive, either through interest, annuitization, or income riders.
Asset Protection. Annuities were also meant to protect your assets for your lifetime and be there for your loved ones as well. This is how they are most commonly used of course.
So there you have it.....
are Really a
Now since this sounds so glib, please read the rest of this site to get a further perspective on what I mean.
Annuities were never meant to compete with the returns you can get in the stock market. You will make greater returns in the stock market! (If only you knew when to get out).
Annuities were meant to compete against Bank CD's. Annuities were also meant to protect you 100% when the market abruptly loses value. Very few investors were ready for the 9-11 drop of 2001 and the Sub-Prime fiasco of 2007.
Alas, my annuity clients never broke a sweat during these periods. And thus proved the redemption of my annuity career. Their funds, with interest, were still waiting for them :
Safe, INcome and Asset Protection.
If anyone is attempting to promote an annuity to you, and it is getting a little confusing, it is probably because they are straying away from these core principles and inflating returns, conflating features and cajoling you beyond the guarantees written in the contract.
I understand this. I was taught to sell annuities the same way!
Annuity Volume Purchased by US Consumers in 2013 :
$ 230 Billion
* (Fixed, Equity Indexed, Variable, Income, etc..)
Top 10 Equity Indexed Annuity Carriers for 2013 :
1. Allianz Life
2. Security Benefit Life
3. American Equity Companies
5. Athene USA
7. Midland National Life
8. Jackson National Life
9. Symetra Financial
Last Ten Years US Annuity Volume Purchased (Variable, Fixed, income etc....)
2004: $ 221 "B"
2005: $ 217 B
2006: $ 238 B
2007: $ 257 B
2008: $ 265 B
2009: $ 235 B
2010: $ 222 B
2011: $ 238 B
2012: $ 219 B
2013: $ 230 B
"...Those are B's, as in Billions..."
All Blog Articles Written by James Alden
Here Ye, Here Ye ..You are Living Too Long
October 20, 2015
Have you Been Considering An Annuity for your Guaranteed Retirement Income ? Guess What ...?
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I have a well-to-do retired optometrist client of mine who inadvertantly ....
Look Before You Leap - The Expensive Price of Rate Chasing
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I have a small confession to make ....
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January 22, 2014
It is always useful, in whatever industry employs you, to study the methods...
Power to the Peeps - An Annuity as a Powerful Long Term Care Policy
December 1, 2013
There is a smoking deal right now unbeknownst to the mass of men...
An Ancient Greek Slaves Advice on Annuities
November 4, 2013
Aesop's morality tales have always offered life lessons - even for modern...
Bank of Utopia now Offering 200% Returns on CD's
October 1, 2013
I just received advance notice that the bank of Utopia, located on the banks of the ....
A Template for Annuity Simplicity
In 2002 I sold several dozen annuities with ING Life and Annuity, at the time one of ...
October 12, 2013
Most Annuity Buyers Have Similar Profiles - How do you Fit ?
Rate the Raters - is it the Rating Game or the Dating Game ?
October 1, 2013
July 1, 2013
I have noticed over the years that the majority of my Ambiguous Annuitants are quite similar in temperament
This article may shed some light on how the Rating Industry works in the insurance....
Never Before Have So Many with so Little to Say Said so Much to So Many
July 1, 2013
As websites and blogs profilerate like rabbits on verdant spring days .....
"I am Waving the White Flag because I Want my Money Now"
June 1, 2013
Demystifying the surrender schedule in your annuity policy...is as easy as reading the policy...which most people do not do..