Are you scared of the stock market losses? Suze Orman and Fixed Indexed Annuities

www.MintcoFinancial.com

The following "Myths vs Facts" information sets the record straight about fixed and index annuities and their advantages for retirement planning and building wealth.

MYTH
Fixed and Index annuities are a bad financial tool.

FACT
• Equity index annuities were introduced in the mid-1990's and significantly grew as more and more people used them for predictable retirement planning. Today, over $250 billion is invested in indexed annuities.

• Fixed and index annuities are protected assets and can be used to build a predictable and comprehensive financial plan.

• Fixed and index annuities are excellent retirement and estate planning financial tools because they are safe money -- money that cannot be put at risk like retirement accounts. Fixed and index annuities are guaranteed against stock market losses.

"When my husband left his employer in 2006, we decided to try something different – we rolled his 401k into a Fixed Indexed Annuity (or Equity Indexed Annuity). 

This type of annuity is an insurance product.  The account value is guaranteed by the financial security of the insurance company.  Each contract has a formula by which the account value can increase by some percentage of the S&P 500 Stock Index (the details vary widely from product to product).  If the S&P 500 goes down, the annuity does not lose value, it remains the same.  So we can win in the good years, and not lose ground in the bad ones.

In contrast to my rollover experience, my husband’s Fixed Indexed Annuity began with an account value of $31,000 and has increased to about $43,000 over the last eight years.  Not bad over the course of the Great Recession.  As designed, in some years the account value did not grow at all, but in others it increased by some factor of the S&P 500 Stock Index.  Most importantly, and again by design, it does not lose value."

Indexed annuities are not equity investments or mutual funds. Indexed annuities do not include reinvested dividends, but the principal is protected from market risk.

This is ideal for people who want to take their profits but don’t want to loose principal but want more potential than from a money market account.

Indexed annuities do not ususally reflect an initial sales load or management fee. Attractive to many investors.

Indexed Annuities are an ideal strategy for 401K and IRA rollovers for a safe harbor with no downside risk. They are also available with an Income for life guarantee withdrawal benefit rider. These provide a guaranteed income stream that you can’t outlive.

Indexed Annuities keep people in the market instead of selling out at the bottom when things decline as the principal plus gains are never at risk of declining.

Other great features are the benefits pass without going through probate to named beneficiaries and in addition the funds grow tax deferred which allow for triple compounding growth.

Also here some advice to you:

• Try to put today's events into perspective. Perspective comes from studying history, not by watching the news.
• Follow the financial news only on Wednesday and Friday. You won't miss anything important and you'll free up three days each week to devote to the more important things in your life. You'll worry less, have less stress and more time to think creatively — not a bad trade off.
• The annuity does a couple of things. It can provide you with enough to cover your "needs" expenses, and then you can invest the rest in lower-cost investments to complement that for your "wants." But at least you know that your basic expenses are covered. If, between pension, Social Security, and some type of guaranteed paycheck, my needs are covered, then I can sleep at night, and if I don't get to take a vacation this year because the market was down, I can live with that. If I can't pay my property tax or buy food, that's something that becomes difficult. Sometimes in pursuit of someone's wants, they sacrifice securing their needs. This is where annuities can fit in.
• If you want to tell me  a little bit about you, your dreams, goals and fears call me at 813 964 7100 or email me https://www.mintcofinancial.com/contact-us/ and we will figure if indexed annuities are for you.