Annuity Myths (Lies) People Will Tell You: Part 3
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.
Myth #11 – Your income will never increase. NOT TRUE. Some plans offer guaranteed lifetime income with the potential for annual increases that get locked in for life.
Myth #12- Other traditional Wall Street type assets will guarantee your principal against losses, provide guaranteed lifetime income, and provide the opportunity for growth. NOT TRUE. Fixed index annuities with income riders, provide these benefits, stocks, bonds and mutual funds don’t.
Myth #13- Annuity companies aren’t safe, they fail all the time and people lose their money. NOT TRUE. No one has ever lost any of their guaranteed principal from an insurance company failing.
Myth #14- All annuities are bad and are the worst thing you could buy. NOT TRUE. It provides 100 percent protection against stock market losses, lifetime guaranteed income, and the opportunity for competitive returns without risk, with remaining assets at death passing to your beneficiaries.
Myth #15- It’s simply too good to be true. NOT TRUE. With a fixed index annuity with an income rider, you will have protection against all stock market losses, income guaranteed for life and the opportunity to make money when the market goes up without risking principal or gains in the future.
The disadvantages include: surrender charges, gains aren’t guaranteed, fees, and guarantees are backed by the financial strength 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.
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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