Buying an annuity is straightforward when you are working with an annuity expert who helps answer all of your questions and sets a clear expectation of the process. We work with a lot of clients in the Long Beach, California area, who are interested in Annuities as a result of us helping them obtain their Medicare Advantage plan or Medicare Supplement plan.
Once we finish helping our clients with their Medicare needs, one of the most common questions we get is:
Many of our clients who are about to retire are now looking to move their 401K and Traditional IRA into a protected investment. They have experienced multiple drops in the stock market and watched their retirement account go up and down throughout the years.
Most of the time our clients have saved for retirement their entire lives but now have no idea what to do next. They are also concerned about stock market losses and they realize that they no longer have time on their side to recover from a major loss.
If you have done any amount of research you have discovered that you are not able to purchase an annuity on your own and this is where a Licensed Insurance Agent who specialized in annuities comes in.
From a very simplistic perspective an annuity does two main things. They either provide you with immediate income or they provide income to you and/or a family member at a specific time in the future which is known as a deferred annuity.
As part of our initial conversation we will ask you the following question related to your retirement money. What is the primary goal for this money? Are you looking for guaranteed income for life, or are you looking to pass on your retirement savings to your heirs?
About 95% of our clients are looking for guaranteed income that will last their lifetime and their spouses lifetime. Here is an example of a recent client worked with who wanted to obtain an annuity.
Husband who has worked for a major company located in Long Beach, CA has recently retired. He is 65 years old and his wife is 62 years old. Both couples are concerned about having enough income to live on when both of them are fully retired.
They are also concerned about outliving their retirement savings and they want to move their money so it is protected from a major stock market loss. They are concerned that if the stock markets goes down by 40 to 50 percent then their income will also go down by this amount.
In their view of the stock market they believe it is only a matter of time before a major correction will happen as it has been doing great for over 10 years. They realize that the stock market usually has a major correction every 5 to 7 years.
The husband has about $700,000 in his retirement account and the wife has nearly $100,000 in her 401K. They intend to start drawing income when they both turns 72. Now that we have established what they both would like to do with their retirement money we created a plan to match their needs.
Our goal is not to show up selling a single product but to create a plan that actually meets their needs. This is one major advantage of using an Annuity Broker is that we don’t just sell one or two products. We exam all carriers and all products to see which one offers the maximum benefits based on the goals of each client.
Will the Annuity continue to pay my wife if I passes away first? Yes, we can put together an annuity that will take care of both spouses. With this type of plan it will provide guaranteed lifetime income that will continue to pay each of them a guaranteed annual salary for life. Even if the husband dies first, the wife will continue to receive the lifetime guaranteed income.
What happens if all of our retirement money we put into the annuity is used up and we are still alive? If you obtain the lifetime guaranteed income rider, even if all of the money you originally provided is distributed and the retirement funds run out, the annuity carrier will continue to pay the exact same amount until both spouses pass away. This is something your 401K or IRA is not able to offer as a guarantee.
What if there is still money in our account value of the annuity and both the husband and spouse pass away? Based on the annuity we set up the remaining funds could be passed on to your beneficiaries. As part of the application process we identify all beneficiaries and the percentage each will receive.
Are there any extra fees we need to be aware of? You requested for us to provide a lifetime income guarantee. As a result of that guarantee the Annuity carrier assess a small fee (in this case 0.90%) as part of giving you this lifetime income guarantee. We as the Agent make no money off of this fee.
Which annuity is best for 2021? Based on what we are seeing today, we find the Fixed Indexed Annuity to offer the greatest benefits for our clients. They offer a minimum guarantee, but also provides a potential for much higher returns as it participates in the S&P 500. It is important that we fully analyze your specific need before we make our recommendation.
Should I buy an Annuity based on a bonus that is provided? If the annuity carrier is offering a bonus to signing up with that company, this is only one factor to consider as related to the annuity purchase. I would not make this my primary factor for obtain that specific annuity.
Integrity Now Insurance Brokers is an annuity expert and has access to over 200 annuity products and annuity carriers. Our team of experts have help our clients move over $200 million dollars from their 401K and IRA into different annuity products.
The main reason annuity carriers do not work directly with clients is due to the complexity of setting up each annuity. Give us a call so we can help move your retirement money into an annuity. We are your Safe Money Expert!
Integrity Now Insurance Brokers, Inc.