Preamble
“Annuities” are the most misunderstand financial instrument there is, maybe even surpassing Reverse Mortgages. Taking the time to learn about all of them would be very boring but the right one for you could lead to some real financial security and possibly earn you some real profits and grow your nest egg. I think the simplest way would just be to set down with me, let me understand your situation and present the correct one for you.
The most popular TYPE of Annuity desired by clients in my client profile (age 62 to 74) is a FIA (Fixed Indexed Annuity). This is why I have a web page just below “FIA’s Explained in Detail.” These are often complex financial products. Again, please remember all you need to do is set and appointment with me and I will give you a custom education just for your situation.
So I do not make the same mistake as other product vendors out there, before I begin going into layers of detail, let up review the simple and fundamentally core definition of “Annuity” from the glossary on this website. It is one that you should try not to lose sight of, while learning these details.
Annuity: An Annuity is a contract administered by a properly licensed and regulated insurance company. (Period).
This sentence ends with the classic “period” and there is no “more” wording to the left or right after that simple sentence in the definition. So when you hear the word “Annuity” all you know is that we are talking about an account administered by an insurance company, but that is all we know. We do not yet know what type of annuity we are discussing.
However when I read most text book definitions elsewhere it seems they all start rattling off about features of some specific type of “contract” from one of the types, classes or categories of “annuities.” I will give you an example when I Google, “define annuity” I get this:
“A fixed sum of money paid to someone each year, typically for the rest of their life” which to me is a partial explanation of one in the category of an “Immediate Annuity.” These have the characteristics or attributes of paying out income to someone on systematic bases and yes for life if it is in the class of a “Life Annuities.” It is no wonder that there is a lot of confusion. We still do not know what type of contract it is, so it could be variable or fixed.
So to make my point airtight when I Google “define Vehicle” I get this great logical definition:
“A thing used for transporting people or goods, especially on land, such as a car, truck or cart.”
Thanks for indulging me, so back on track…………………
So you see Google, one of our main sources of information provides a fantastic one sentence definition of a vehicle, and did not just jump into talking about a specific type of vehicle like a cement truck.
When learning about any financial product there is always a Yin and Yang or Pro and Con and if you are not being presented that then you are either being lied to or some important information is being held back from you that you may need.
When I share information about each it will help you understand the advantages and disadvantage of each type and then help you understand why the FIA is the TYPE in the greatest demand.
The problem is there are as many categories, class and types of annuities as there are airplanes. The adjectives in the name of the product tell you what it is but they are not always used. The name "Fixed Indexed Annuity" is not all necessary the complete discription nor tell you that much. That is why I go into great detail on the page about FIA's.
There are four general quality classes of each of the categories of Annuities, the first three are “Total Junk” and “Just Ok” and “Extremely Good” and most are in the first group. But even the “Extremely Good” one still must be properly matched with the needs of the annuitant. Unfortunately, I often see this has not been the case, in other words the transaction were not all suitable for the consumer. When it comes to finding the higher quality products, I have found it extremely challenging to find the extremely good ones. The forth group, when installed appropriately do a great job for the owner and are worth taking the time to learn about.
As with all my website pages, just point to, then hover your mouse cursor over the subject page button (or sub-page) on the right column of page and click on the subject area you wish to review.