Because of the recent volatility in the market, the ongoing increase in interest rates, and the fact that June is marked as Annuity Awareness Month (AAM), now is a beautiful time to talk about annuities. In my experience, a few independent registered investment advisors (RIAs) and comprehensive financial planners do not typically discuss or recommend annuities to their customers. Consultants do not clearly understand what annuities are or what they can accomplish with them. Annuities can have a beneficial effect on the customer’s investment portfolio, as well as on the customer’s financial performance and financial plan, but only if they are used appropriately. In this piece, I hope to highlight how they function, how they belong, and why now could be an excellent place to begin introducing them into your customer dialogues. As a “fee-only” alternative, annuities can be bought, which is something to keep in mind. Adviser concerns about employing “fee-only” annuities have been alleviated by the ability to charge a fee rather than earn commissions. Gains to Market vs. Gains to Investors After analyzing investors’ reactions to the stock market’s current volatility, there is no indication of tranquility on the horizon. There is some evidence to show that the typical individual makes a profit much less than the yield that the market generates-because of this, having a conversation with clients about their dangerous behaviors can be an excellent use of annuities. The premise that a fixed index pension can share in some of the industry’s gains while not posing any possible losses makes it an attractive investment during market volatility. One of the most prevalent complaints about these goods is that the return on investment (ROI) is between 3% and 6%. Nevertheless, research shows that investor returns tend to fall within ranges; as a result, perspectives might need to be reconsidered. Affluent and Prepared for Retirement Today’s retirees face more significant challenges than their forebears did. A lack of employer retirement and an increase in life expectancy severely threaten retirees’ quality of life. When it comes to ensuring a comfortable retirement, discussing annuities with a customer is an excellent starting point. Customers can benefit from instant annuities and provide a “personal pension” they might not even receive from their current work. Fixed indexed annuities, which have “assets under management” and possible profits for heirs, can produce similar lifetime earnings. We recommend using an annuity to bridge some of your clients’ income gaps. Their retirement demands can be easily met by employing pensions, Social Security benefits, and annuities. This is a natural decision for many clients when considering their retirement options. This planning conversation may be taken to clients using client-friendly resources and demonstrations from my firm. You can get in touch with me at any moment. An Alternative Viewpoint from the Right MYGAs have been a popular choice for cautious investors due to the recent rise in interest rates. An MYGA is a fixed annuity that gives a guaranteed fixed interest rate for two to ten years. An MYGA is a good option for those nearing retirement who want to avoid paying taxes while still receiving a guaranteed return. MYGAs are a good CD alternative for clients who plan to keep their money until they are at least 59.5 years old.
Contact Information:
Email: [email protected]
Phone: 2129517376
Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].
