Annuity Myths (Lies) People Will Tell You: Part 2
People will tell you myths about fixed index annuities with income riders because they don’t really understand how they work, or because they want to sell you something else. We recently provided the first 5 myths about fixed index annuities, here are some more:
Myth #6- You can’t get any growth. NOT TRUE. When your index goes up you have the opportunity to earn competitive returns for a low-risk asset, and when your index goes down you lose NOTHING.
Myth #7- You can lose principal in a stock market crash. NOT TRUE. Your principal and past earnings are 100 percent protected from all stock market losses. If the market crashes 50 percent, you lose 0 percent.
Myth #8 – You lose total control of your assets. NOT TRUE. As the plan allows you can turn on income, take penalty-free withdrawals, change beneficiaries, surrender your contract, change indexing options, and pass all remaining assets to your beneficiaries.
Myth #9- The stock market will always beat annuity returns. NOT TRUE. When the stock market produces a negative return, you will earn 0 percent in the annuity, a better return.
Myth #10- Your income isn’t really guaranteed for life. NOT TRUE. Your income will not end regardless of how long you live, if the stock market crashes, or if your account goes down to zero dollars. 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 into your plans for retirement, call us.
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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