The more you know about your money, the more you can keep in your pocket. Your retirement accounts can grow even faster with some key strategies. Just ask & I’ll be glad to help you.
Be Prepared, Not Surprised!
June 11th, 2009Another Option in Volatile Markets: Annuities
June 9th, 2009June 9, 2009
With Investors concerned about the recent volatility of the stock market, but afraid that bonds and cash equivalents won’t earn the return they require, some Financial Advisors are recommending another option: Annuities.
Although Annuities sound complicated, the concept is fairly simple. An Annuity is a contract between an individual and an insurance company. The individual makes either a single payment or a series of payments to the insurance company. The Investor can either keep the money in the annuity, growing tax-deferred, or he/she can have the insurance company make periodic payments to them beginning immediately or at some future date. Some types of annuities will guarantee an interest rate paid every year, and other annuities have formulas which will pay interest based on the growth of an Index like the S&P 500. Variable annuities have a completely different formula for paying interest.
Annuities may be good choices in a market like the one we’ll be experiencing this Summer. Your principal–the amount you initially contribute to the annuity–is guaranteed by a large, well-established, and well-rated insurance company if you’re investing in a fixed or fixed index type of annuity.
Annuities have other benefits too:
1) Annuities have been around since the 1900’s, so they’re proven investment vehicles.
2) Annuities are easy to purchase, with no up-front sales charges to your investment.
3) Annuities aren’t subject to probate, which means the funds in the annuity will generally pass directly to your heirs without having to go through probate court, which can be time-consuming and expensive.
4) The assets invested in an annuity grow tax-deferred, the same way assets grow in an IRA or a 401K. In fact, many Investors create an IRA with an annuity.
If you have questions or comments about annuities, please send me a note! Annuities don’t fit for everyone, but they’re worth some consideration in this volatile market to protect some of your invested dollars.
Don’t be lulled into complacency with the stock market now !
June 5th, 2009Every Investor wants to believe that we’ve reached the bottom of the recession and plenty of good profit-making days in the stock market are ahead. Don’t be fooled! We still have recovery for the auto industry and all its feeding industries, and Obama’s team is ready to challenge the health industry next.
A strategy for now? Covered call investing, diversity, & some guaranteed products. Find out what your risk tolerance is and create a mix that will let you sleep peacefully at night.
Have questions? Just ask me.