We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (21,155)
  • Industry Conferences (2)
  • Industry Job Openings (35)
  • Moore on the Market (414)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (800)
  • Wink's Articles (353)
  • Wink's Inside Story (274)
  • Wink's Press Releases (123)
  • Blog Archives

  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • The boomer woman’s guide to annuities

    November 11, 2013 by Melody Juge

    Annuities are all the rage right now, especially for the risk-averse boomer women planning for their retirement. There are many reasons someone may require, or simply feel more comfortable with, an annuity in their retirement portfolio. But the annuity sales process can be unforgiving if you are not prepared. Annuities are complicated and usually have limited liquidity. Here are five simple steps to help keep you organized and on track as you do your research and prepare for your potential annuity purchase.

    1. Before getting involved in the actual purchase of an annuity, take a step back and ask yourself: Why do you want an annuity? Whose idea was this? Do you have a clear need in your retirement portfolio for the specific benefits that can only be gotten through the placement of an annuity? And if so, what are the benefits that you are seeking? If you do not have an adviser that is helping you through your retirement planning process, this would be a good time to get one.

    2. To determine the kind of annuity that may best suit your needs, start by making a list of the results you are expecting from the purchase and placement of this product type into your retirement portfolio. Here are a few questions to consider: Do you require an exact amount of additional monthly income to supplement your Social Security or pension benefits? Do you need this income payable to you for 5 years? For 7 years? For life? Are you going to use the annuity as a replacement for bonds in the conservative portion of your portfolio? Are you using the annuity to defer taxes during retirement? Are you using the annuity as a certificate-of-deposit replacement? Will you require access to the principal premium dollars invested at any future time? Be clear about the results that you want. There are many types of annuities and each one of those types has numerous provisions that have different contractual offerings as well as different potential benefits and detriments to you. It’s complicated, so be careful.

    3. How do you know what kind of annuity will best serve your needs? The bells and whistles of a specific product being presented to you may sound exciting, but those very bells and whistles that piqued your interest may actually be irrelevant to you once you are clear on the exact results you are seeking. Keep your list of “results wanted” as a handy reminder of your specific requirements throughout your research process. This is a good way for you to stay in control and to avoid getting yourself into a sales cycle where you could end up with a much more complicated product that does not suit you and is not in keeping with your expectations and your list of requirements.

    4. Do not cross-compare different types of annuities with the expectation that they will all be the same. They can be very different in structure, costs, liquidity and benefit options. Be careful about comparing variable annuities with traditional fixed annuities and equity index annuities. Here are some things that will be important for you to know and evaluate prior to your purchase: What are the surrender charges? Is there an annual policy fee and if so how much is it? What percentage or dollar amount are you eligible to withdraw penalty-free each year? What is the length of the surrender-charge period? Are there fees in addition to the basic surrender charge for early, partial or full surrender of the contract? Is your annual penalty-free withdrawal cumulative? Are there internal fees charged for investments; if so what is the exact amount of the charges?

    5. Know the person you are talking to and his or her professional expertise and licensing. Most consumers are unaware of the differences in licensing requirements for investment advisers and insurance salespeople. A simple state insurance license will allow someone to sell fixed and equity-indexed annuities as well as life insurance. However, the state insurance license is limited and only allows for the review and evaluation of annuities and life insurance; it does not allow for the evaluation of a client’s entire investment portfolio. The licensing requirements to look for are: state insurance license plus securities licenses 6, 63 or 7, and of course a series 65 license, which is an investment-adviser license that allows evaluation of a portfolio and the giving of advice. This type of licensing often indicates a more knowledgeable planner, and certainly indicates one who is licensed to provide more product choices.

    The majority of retirement annuity products on the market are not offered direct to the public, so you will need an insurance-licensed adviser to help you. It is also important for you to choose someone to work with who is licensed to take your entire portfolio and retirement goals into consideration prior to making a recommendation.

     

    About Melody

    Melody Juge is managing director of Life Income Management. For over 30 years she has specialized in creating income for life for people age 50-plus. Her experience, passion and sense of humor have made her a sought-after speaker on the subject of retirement planning. You can contact her at melody.juge@corecapinv.com.

    Originally Posted at MarketWatch on November 11, 2013 by Melody Juge.

    Categories: Industry Articles
    currency