Helping Your Clients Meet Retirement Income Needs
May 13, 2020 by Kate Stalter
The market downturn is focusing investors’ attention on the safety of future income streams, particularly those earmarked for retirement.
Sheryl Moore, CEO of Moore Market Intelligence in Des Moines, Iowa, says many consumers are unfamiliar with annuities.
“Most people have never heard of an annuity. Those that have, think that it is a product where you pay an insurance company a large sum of money, and if you die the next day, the insurance company keeps your money. That couldn’t be further from the truth,” says Moore, whose company provides competitive intelligence and other services to the insurance and annuities industries.
Many familiar financial instruments are structured as annuities, as they offer an income guarantee using a calculation for regular payouts. Calculations use a number of factors, such as principal and life expectancy.
“Annuities are something you know. Social Security is an annuity. A pension is an annuity. If you win the lottery, you are paid through an annuity,” Moore says.