Medicare Insurance Agent
Long Beach California

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Highest market-like returns with NONE of the market risk

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Guaranteed income you can never outlive

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FREE annuity quote which includes rates from our highest paying annuities available from top rated insurance companies. Annuity quotes are customized for State, Age and Investment needs.

We are your: Safe Money Expert

We are here to help protect your retirement income, to ensure you don’t lose 40 percent or more of your annual retirement income. 

If you are not ready for retirement, with our annuities we structure a program that allows you to enjoy the stock market gains and not participate in large market losses.

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Request Your Annuity Quote!

What is our Annuity Evaluation Process

Step 1

Initial Phone Call

Typically a 5 to 10 minute phone call, where we gather basic information. Our goal is to learn about your particular retirement goals and needs. In addition we want to know why you are considering an annuity as part of your Safe Money Strategy.

Step 2

Schedule Appointment

This meeting last between 30 minutes to 1 hour, depending on how many questions you might have. This meeting is designed to be educational in nature. No High Pressure Sales.

Step 3

Follow up Appointment

This meeting is designed to go over any additional questions you might still have. We want to make sure you are completely comfortable with your decision to obtain an annuity.

Step 4

Complete Application

Once you have decided that an annuity is your best option, we will complete the needed applications and set-up a clear expectation of the process of moving your 401K and/or IRA accounts.

Step 5

Deliver Annuity

Congratulations, your new annuity policy will be delivered to you. Your retirement account is now part of our safe money strategy.

Do you want to know more about Annuities

Annuities

If you are like most people, you are getting closer to retirement or you just retired and you are trying to figure out what to do with your 401K or individual IRA.  

You might also want to know how to protect your money from market losses.  You have enjoyed big gains in the stock market but you also remember the large losses you have experienced over the years. 

From 2008 to 2009 the stock market dropped 54% and many retirees took a major cut in their annual income.  That is everyone but those who were already protected from market losses.  Our clients are not concerned with market losses as their annuities protect them from these dramatic events.

The last thing you want as you enter retirement or while in retirement is for your retirement accounts to drop 40 to 50 percent.  With a major drop in the market your income also decrease by this amount as your annual withdrawals are based on a percentage of your investment values.

Let us look a little deeper and answer some of the following questions:

  • What is the purpose of an annuity
  • Does my Financial Advisor have my best interest at heart
  • Fixed Annuity
  • Fixed Indexed Annuity
  • Immediate Annuity
  • Deferred Annuity
  • Variable Annuity

 

Annuities are a great way to protect you from stock market losses.  Depending on which annuity you obtain, you can enjoy the market gains while not having to deal with market losses.

What is the purpose of an Annuity?

The main purpose of moving your retirement accounts (401K, and/or IRA) into an annuity is protection, protection, protection.  In addition annuities provide you with supplemental retirement income, similar to a pensions and or your Social Security income.  By adding an income rider to your Indexed Annuity it provides guaranteed income for life.

An annuity is able to provide guaranteed income for life and with the exception of a variable annuity is not vulnerable to stock market losses.  Depending on how your annuity is set up for your specific situation,  you can participate in stock market gains but not stock market losses.  

We have found that often times annuities will pay out more than your 401K and/or IRA, as the annuity will continue to pay the same amount year after year even when your funds have been fully withdrawn.

Guaranteed lifetime payouts from your annuity is something your 401K and your traditional IRA are not able to offer.  Once your retirement accounts have exhausted all available funds, your annual income from these two sources stops.  With an annuity, the payment continues until either you and/or your spouse passes away.

Any funds remaining in your account value or death benefit within your annuity at the time of your passing, will be transferred to your beneficiaries.

Does my Financial Advisor have my best interest at heart?

While we never want to believe our financial professionals don’t have our best interest at heart, never forget that your retirement account pays is their annual salary.  You can think of your 401K and/or IRA as your investment advisors personal annuity.  The moment you handed your financial advisor your 401K or IRA funds, they receive commissions that typically equal between 2 to 3 percent on average per year.  When the stock market goes down and you lose 30 percent of your investment, they still receive their annual check from your retirement account.  Now that is a fantastic deal for your investment advisor.

This means if your retirement account earned 8% in 2019 you actually earned between 5% to 6% because of their fees.  If your investment account lost 30 percent you will actually lose 32 or 33 percent when you factor in their annual fee. I don’t know about you but that doesn’t seem right.

So why would your financial advisor not recommend an Annuity?  This is because annuities pay a commission one time at the initial sale.  Now these funds are no longer part of your financial advisors annuity payout. 

Let’s look at this a little differently.  If you have $500,000 in your retirement account and your investment advisor moved $250,000 into an annuity, they would have reduced their income by $6,250 annually based on a 2.5% commission rate.  They were making $12,500 annually in commissions and now they just took a lifetime pay cut. 

Assuming your retirement account had stayed at $500,000 for 10 years your investment advisor just lost $62,500 in income.  Can you see them eagerly wanting to move you into an Annuity?  

Thankfully this is where we come in to provide the needed help and security.  We have access to over 200 annuity products that are each tailored for different situations.  Each annuity product and annuity carrier produce a different income result.  

As an independent insurance agent we have the freedom to offer all available annuities and products available to us throughout the USA.  As an Insurance Broker, we are not restricted or limited to a single annuity company we have access to all of them.

What is a Fixed Annuity?

A fixed annuity is something that is set in stone by virtue of an insurance contract.  When you purchase a fixed annuity, the insurance company guarantees the buyer a specific annual payment.  This payment can either begin immediately or set to begin sometime in the future. 

As the purchaser of the annuity you transfer the investment risk away from yourself and onto the annuity carrier.  Because you now have a contractual agreement you can rest assured of the guarantees that are outlined in your annuity contract.   

While a basic fixed annuities are considered safe and predictable, these more simple annuities that are not tied to an index may not be your best option when it comes to obtaining an annuity.
 

Fixed annuities that are not tied to the index, can create a financial issue as a result of inflation that our country may experience from year to year.  It is important for your annuity Agent to include a enhancement to your annuity contract called a rider which is designed to protects you from inflation.  An annuity rider does include a small fee this is one fee you should never go without.   

Some of our clients will insist on a fixed annuities that produces a guaranteed rate of return and these products can be a good fit for some individuals, however, for most of our clients we typically will recommend an indexed annuity over a basic fixed annuity.  See below on what is an indexed annuity.

Fixed Indexed Annuity

Fixed index annuities also offer the same high degree of safety as a basic fixed annuity, however this product allows you to participate in a stock market index allowing you to obtain obtain additional market gains.  Because the fixed indexed annuity is backed by a guarantee, that is where the safety comes in. 

There are multiple ways to structure a fixed indexed annuity depending on what your financial needs and goals are.  One way to structure these is based on growth. Below is a sample of how a fixed indexed annuity that is designed for growth can work. 

Fixed indexed annuities participate in the market when they go up but do not participate in the market in years that the market sustains a loss.  This means if you have $500,000 in your fixed indexed annuity and the market goes up you can earn up to the Market Cap of let’s say 8%.  So now your money could be worth $540,000.  However, if the S&P has a market loss of 25% the following year, you would stay at $540,000 for that year.  

If you were still in the stock market your retirement account would be worth $405,000 with that same 25% loss.  Assuming the following year the market goes up 12%, your stock market account would be worth $453,600 ($405,000 x 12%).  However your fixed indexed annuity account could be worth $583,200 ($540,000 x 8% market cap rate).

It is important that you read and understand how your annuity is structured and know the exact terms and conditions of your annuity contract.  We will walk you through your annuity contract so you are completely comfortable with what you are obtaining before you make a decision to move forward.

As you can see, because the fixed indexed annuity does not participate in market losses you can end up way ahead.  While you won’t participate in the full market gains you also don’t participate in any market losses.  This can be a huge competitive advantage and brings many people peace of mind. 

What is an Immediate Annuity (SPIA, DIA & QLAC)?

An Immediate Annuity has become know by several different names. These include, Single Premium Immediate Annuities (“SPIA”), Deferred Income Annuity (“DIA”), or Qualified Longevity Annuity Contract (“QLAC”).  Depending on how these are structured will depend on the exact name that is usually attached to it.  

This type of annuity was first introduced in 1759 but did not become widely used until 1812.  Annuities are not a new idea and as a result they have become a trusted option for those individuals who want a guaranteed income stream that is based on the dollar amount they hand over to the annuity company.   

The annuity company receives your deposit and produces a written contract, which will identify a specific amount you will receive each year.  This amount can last for the remainder of your life or for a specific time period that you choose.  

With a lifetime immediate annuity, this is a simple game of math.  The insurance company is looking at averages of what the typical person can live too.  If you do not live to that specific age than the insurance company wins but if you live past the expected life span than you win. 

Typically, you as the purchaser of the annuity will have a slight advantage over the insurance carrier.  This is due to the fact that health questions are not asked during the application process.  You might have a family history that shows your genes allow you to live for many years past the statistical average.  

What is a Deferred Annuity

As the name of this annuity type implies, a deferred annuity is designed to delay the payment until a later time period.  This is a specified future date that you pick at the time of the contract. 

Unlike immediate annuities that begin right away, a deferred annuity gives you the opportunity to also grow your investment amount while you wait for the initial payment to begin. 

Depending on the length of time between your initial deposit and withdrawal date, some insurance carrier will give you a bonus at specific time period like 5 year and/or 10 years into the deferred period.  Earnings on your investment amount grow tax-deferred until the money is withdrawn.

A deferred Annuity are typically purchased by individuals who are still waiting for retirement and want a guarantee not to lose their retirement income that they have spent years accumulating. 

You also have the option to add on additional riders that provide enhancements to your annuity such as guaranteed income for life, Long Term Care benefits, Nursing Home Care Rider, Terminal Illness Rider, and Death Benefits.  

There are many ways to structure these types of programs.  It is important to make sure we as your annuity Agent have a clear expectation of what you are wanting to accomplish as part of your investment strategy.

What is a Variable Annuity?

A Variable annuity contract allow the insurance carrier to invest your premiums in a much more volatile way.  This is typically done by investing your funds with mutual funds, stocks, bonds and other short-term money market products called “sub accounts.” These types of annuities do not have a guarantee and can experience large losses.  

Many people talk about the high fees that are included with annuities.  These fees they hear about are specifically related towards variable annuities.  All other annuities have a very limited fee structure.  Unfortunately, the other annuity types get a bad name as related towards high fees because of the variable annuity.

Unlike the other annuities we have listed you can lose money in a variable annuity.  We do not find these types of annuities to be your best option and recommend staying away from them all together.  

We are your SAFE MONEY EXPERT and for this reason we do not recommend variable annuities as these products come with high fees (3.5% to 4.5% annual fee on average) and are susceptible to high losses.

Need Help with how your Annuity design

We are here to help you put together a plan that makes sense for your situation.  There are over 200 different annuity products that all perform differently and are tailored for a specific purpose.  Buying an annuity is not as simple as buying auto insurance or home insurance.  It is important to work with an annuity Agent who has access to every product so we can see which one is the best fit for you.

Give us a call so we can schedule a time to discuss your specific situation and we can then put together a plan that will meet your financial goals.

Call us at 562-735-3553