Are Annuities a Good Retirement Savings Vehicle?

Annuities are insurance products investors often consider when they plan for retirement. They are tax-deferred savings products but some come with a variety of fees and expenses, such as surrender charges and administrative fees, and different investment risk levels. There are 3 main types of annuities:

  • fixed
  • variable
  • indexed

In this show, we will focus on indexed annuities as a viable retirement investment vehicle in the right situation. Some annuity contracts provide a way to save for retirement. Others can turn your existing savings into a stream of retirement income. Still others do both. If you use an annuity as a savings vehicle and the insurance company delays your payout for the future, you have a deferred annuity. If you use the annuity to create a source of retirement income and your payments start right away, you have an immediate annuity.

Listen in to find out more.

Q&A – Roth IRA Conversions, Inflation and Annuities

In this episode, we answer a few questions that some of you have called in with.

First, we’ll talk about the best way to handle RothIRA conversions so that the income from your portfolio pays the tax due.

Second, we cover the best investments that will be able to keep pace with inflation.

Finally, are annuities good for retirement? Listen in to find out.

How Do Income Investments Keep Pace with Inflation?

Inflation is currently at 6.4% and the FED has made it clear that they’re going to do what it takes to fight it and get it down to 2%. Personally I think this will take a couple of years and in the short run we can still expect high inflation. How do you keep pace with it in the short run, and in the long run?

In the short run, the answer is simple: you don’t. There’s no investment out there that’s going to guarantee you a 6.4% return rate every year. Even with stocks, you have to be in it for the long run to get that rate of return.

In the long run, keeping pace with inflation could come down to income investments as a viable option. How?

Dreaming Again

I recently had one of the longest client meetings in my career (almost 3 hours long) with a couple whom we’ll call “Joe and Shirley”. Throughout their entire life they had shrunk down their goals little by little to meet their income until they had completely lost their dreams. I spent almost the entire meeting showing them how they can build their dreams back up again because as it turns out they had plenty saved in order to create a comfortable retirement income – they just didn’t know how to do that.

Does this sound like you? You may want to listen in.

How to Succeed in Retirement

In this show, I’m going to put retirement in a different perspective than maybe you’ve thought about. When you’re in your 20s or 30s, it’s all about the money. “We’re never going to die” is the thought, so we’re not giving time much thought. On the other hand, if you’re over 65 and on the brink of retirement, is it more about the money or about the time? How many more go-go years do you have left before the slow-go and no-go years? Time becomes more important. What good is it to have a lot of money if you’re too old to spend it?

So let’s talk about what it takes to have a successful retirement:

  1. time with family
  2. time to accomplish things on your bucket list
  3. peace of mind
  4. knowing that you can count on income from your investments

Here’s how you can get started on that path – listen in.

Stock Market Cheerleaders

When you think about cheerleaders, they root for their team no matter how the team is performing. They may be being clubbered by halftime but the cheerleaders keep going in order to try and keep the team’s spirits up and the fans excited about the game (or they may not buy a ticket again). Because when you think about it, sports are a business, and their goal is to get fans to buy tickets or merchandise or any conceivable team logo gadgets the mind can come up with.

It’s no different with stock brokers. Their goal is to get you to buy stocks or at least to not sell the ones you have. Regardless of whether or not the stock market is doing well or is in a nosedive, stock brokers are still out there with their pom-poms, cheering you on to stay at the casino table. Are you risking too much?

Listen in.