Each week, Jim Byrd and Biff Hamel share the latest information on planning for a safe and happy retirement. Tune in to the broadcast on the radio each week or listen to the recording either on iTunes or the website. Highlights of this week’s show:
Market Risk and Fixed Index Annuities
Market investments such as stocks, bonds, and market funds all include exposure to market risk. With the market over-priced as it is, and almost 8 years since a correction, we are overdue. Fixed index annuities offer an alternative to market risk. Fixed index annuities participate in the upside of the market but not the downside of the market and offer similar returns, but with no market risk at all.
Cost and Fixed Index Annuities
Why do annuities have a bad rap? There are different types of annuities and some are better than others. Know what you are buying! Older annuities used to cost more than the newer ones we offer today. Since annuities are insurance products, our commission is paid by the insurance company so the entire amount you pay goes to work for you immediately. Fixed index annuities are far less costly than market investments when you factor in the cost of a potential market correction of 15-50%. Some people object to surrender fees, or the fee charged for early withdrawal. Again, even 8-9% is far less than a correction in the stock market and most people never incur surrender fees. At Safe Harbor, we look at every contingency and will custom design your portfolio to minimize your risk of future surrender fees.
Flexibility and Fixed Index Annuities
Some people object to the idea that their money will be tied up for a set period of years. But the key to successful investing in fixed index annuities is to take your unique situation into consideration when choosing the annuities. We also have a fiduciary responsibility which means we are required to watch over your interests above our own. Because we represent almost 100 companies, we can choose the best products to meet your objectives. Your portfolio can be structured to meet your regular retirement needs plus additional needs such as life insurance, long term care insurance, and other options so you lower your probability of needing early withdrawal. And some annuities are structured to pay out more money for retirement in the early years and less in later years as your spending needs decrease. Flexibility and customization are key.
Learn more at a Seminar or a Personal Consultation
Two upcoming seminars will help you understand more about our products and services in light of your upcoming retirement. Don’t delay! Call our office at 251-625-1226 to register for your seat:
- January 16, 6:00 pm, Jesse’s Restaurant in Magnolia Springs, AL
- January 18, 6:00 pm, Half Shell Oyster House in Mobile, AL
If you prefer, give us a call to schedule your complimentary consultation. We’ll take a look at your retirement portfolio, discuss your future plans and dreams, calculate your risk tolerance and your portfolio risk and offer some suggestions. Contact us today!