Annuity Myths (Lies) People Will Tell You: Part 1
People will tell you myths about fixed index annuities with income riders, either because they don’t really understand how they work, or they want to sell you something else.
Myth #1-You will pay very high fees. NOT TRUE. The total average annual cost for a fixed index annuity with an income rider is 1.0 percent, in writing, fully disclosed.
Myth #2-There’s a big commission that comes from your money to pay the agent. NOT TRUE. No commissions are deducted from your money- the annuity company pays the agent, you don’t.
Myth #3 – You can’t access your money for a long time. NOT TRUE. In some plans, you can access income immediately, and in most plans, you can access funds after 12 months.
Myth #4 – When you die the insurance company keeps your money. NOT TRUE. After using the income rider for lifetime income, 100 percent of the funds remaining at death pass to beneficiaries.
Myth #5 – The insurance company can change your contract at any time. NOT TRUE. Your annuity is a legally binding enforceable contract that can’t be changed without your consent. You can protect your savings from losses & receive lifetime income but could incur surrender charges, gains aren’t guaranteed, you’ll pay a fee, and guarantees are backed by the financial strength claims-paying ability of the issuing annuity company.
You may also be interested in this recent video from our Whiteboard Series.
If you want to learn how a fixed index annuity with an income rider could fit you’re your plans for retirement, call us.
916-791-7063
You might also like to learn more about our book Momma’s Secret Recipe for Retirement Success
DISCLOSURE – All presentation data is provided and intended to be used for general educational purposes only and is not intended as a solicitation for you to buy or sell any financial product. None of the material in this presentation is intended to give you, nor are the presenters engaged in giving you, specific tax, investment, real estate, legal, estate, retirement, or financial advice, but rather to serve as an educational platform to deliver information; nor is it intended to show you how the strategies presented can specifically apply to your own tax, investment, estate, financial, or retirement position, but rather to offer an idea of how these principles generally may apply. Stocks, bonds, or mutual funds have risks and can lose principal, even with a stop loss, and there is no guarantees of gains, as past performance is not indicative of future positive investment results. The sale or liquidation of any stock, bond, IRA, certificate of deposit, mutual fund, annuity, or other asset to fund a new portfolio and/or annuity may have tax consequences, early withdrawal penalties, or other costs and penalties as a result of the sale or liquidation. You can’t invest directly into a stock market index. A fixed index annuity with an income rider can protect your savings from losses and provide you guaranteed lifetime income, but you could incur surrender charges, gains aren’t guaranteed, you’ll pay a fee, and guarantees are backed by the financial strength claims paying ability of the issuing annuity company. Illustrations/projections displayed within this presentation are hypothetical in nature and should not serve as the sole determining factor in making financial decisions. Consult with a qualified investment, tax, legal, and/or retirement advisor before making any decisions. By contacting Peak Financial Freedom Group, you may be offered additional information regarding the purchase of financial products. Seminars, radio shows, TV productions, book releases, magazine and book promotions are sponsored, promoted and paid for by Peak Financial Freedom Group, LLC. If you place assets under management with our firm, we are paid an advisory fee, and if you purchase an annuity from our firm, we are paid commissions from an insurance company.
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