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Many people considering annuities with a guaranteed lifetime withdrawal benefit rider run into the term 'Hybrid Annuities." We - and many in the industry- call these
'Hybrid Annuities' because they are a hybrid of benefits the blend together into a unique package. The underlying annuity contracts can be either Variable Annuities, or Indexed Annuities.
First and foremost, Variable Annuities simply do not protect your principal. They cost a lot, and most of the time, the guaranteed income rider can be bought for less money through an indexed annuity.
Understanding the difference between these products is really important. Basically, a variable annuity actually puts your money at risk of loss in the markets, unless you purchase many additional riders and add-ons, whereas many indexed annuities keep your money safe and offer better value and guarantees, all with lower costs.
Well over 60% of annuity sales in the US are Variable Annuities, but I really struggle to understand why.
It must come down to sales- most advisors and brokers know next to nothing about guarantees and secure income. They live in a buy-and-hold and stocks-and-bonds focused world. The variable annuity is the closest thing to that world that they can see, and they simply don't take the time to understand the options.
With the recent economic turmoil, there is no doubt that guaranteed products will find their way into many people's financial portfolio- as a reader a researcher, you're way ahead of the curve and actually taking time to learn and consider your options.
If you are shoring up retirement assets after a loss, why gamble any further?
Here's the key- Guaranteed lifetime income can solve many problems and give people the safety and security that they deserve after years of hard work.
There are many ways to put guaranteed income into place- you may already have Social Security and pension income.
But there also Indexed Annuities with riders, and you might also be shown variable annuities.
Before you make any critical decisions on annuities, you must educate yourself about the current market for these products.
Make sure to ask yourself a few questions before you buy any Annuity:
Do you understand your goals?
Does the annuity you are considering reach those goals?
Can you verify if your advisor has your best interests in mind?
Have you researched all options for maximum guaranteed income?
The decision you face has a lot riding on it. Do not sell yourself short. Get the most security and profitability out of your money.
More Information:
Nathaniel M. Pulsifer is a retirement income expert who builds plans for clients that produce financial freedom and security, and that work even when the markets tank. He is dedicated to helping investors and advisers become educated about the annuity market. For more info visit http://www.annuitystraighttalk.com
'Hybrid Annuities' because they are a hybrid of benefits the blend together into a unique package. The underlying annuity contracts can be either Variable Annuities, or Indexed Annuities.
First and foremost, Variable Annuities simply do not protect your principal. They cost a lot, and most of the time, the guaranteed income rider can be bought for less money through an indexed annuity.
Understanding the difference between these products is really important. Basically, a variable annuity actually puts your money at risk of loss in the markets, unless you purchase many additional riders and add-ons, whereas many indexed annuities keep your money safe and offer better value and guarantees, all with lower costs.
Well over 60% of annuity sales in the US are Variable Annuities, but I really struggle to understand why.
It must come down to sales- most advisors and brokers know next to nothing about guarantees and secure income. They live in a buy-and-hold and stocks-and-bonds focused world. The variable annuity is the closest thing to that world that they can see, and they simply don't take the time to understand the options.
With the recent economic turmoil, there is no doubt that guaranteed products will find their way into many people's financial portfolio- as a reader a researcher, you're way ahead of the curve and actually taking time to learn and consider your options.
If you are shoring up retirement assets after a loss, why gamble any further?
Here's the key- Guaranteed lifetime income can solve many problems and give people the safety and security that they deserve after years of hard work.
There are many ways to put guaranteed income into place- you may already have Social Security and pension income.
But there also Indexed Annuities with riders, and you might also be shown variable annuities.
Before you make any critical decisions on annuities, you must educate yourself about the current market for these products.
Make sure to ask yourself a few questions before you buy any Annuity:
Do you understand your goals?
Does the annuity you are considering reach those goals?
Can you verify if your advisor has your best interests in mind?
Have you researched all options for maximum guaranteed income?
The decision you face has a lot riding on it. Do not sell yourself short. Get the most security and profitability out of your money.
More Information:
Nathaniel M. Pulsifer is a retirement income expert who builds plans for clients that produce financial freedom and security, and that work even when the markets tank. He is dedicated to helping investors and advisers become educated about the annuity market. For more info visit http://www.annuitystraighttalk.com
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