How You Can Replace High Fees And Expenses With Consistent And Reliable Income

Here at Statewide Retirement Planning Co., we believe in “laddering” different contracts to get you, the client, the benefits in your annuities that fit your needs the best over time. But, one thing that is NOT an option with us is a Variable Annuity. We don’t sell them, and, unless some major changes take place within the VA contract, we never will. Call us at (954) 781-2220 to learn why we don’t sell VAs. We’ve helped many retirees consider their choices* and there’s a good chance we’d be able to help you too.

As a retiree, it is important that you focus on the products that will give you the highest guaranteed** and lifetime income without sacrificing security.

That said, I am going to compare a Variable Annuity with a Fixed Index Annuity.” In doing this, I hope to educate you on the striking differences between the two so that you can see what I see and learn why we do not sell them.

With a Fixed Index Annuity, protection of principal is already built in. In addition, you can purchase some types of

protection for a fixed income annuitythrough riders, which you can get for an additional charge. I often recommend some of these riders because, for instance, they can offer protection against inflation.The stock market has far out-performed inflation. Just by owning a Fixed Index Annuity, you have the opportunity to earn interest based on potential market gains (which are higher than inflation over time), without directly participating in the market.

While the stock market can be good, it will never offer the guarantees* that a Fixed Index Annuity has. But, when it does perform well, having a Fixed Index Annuity allows you to participate in those gains without participating in the downside of the market!

With Fixed Index Annuities, the risk is taken on by the insurance company to make sure they can provide profit for the clients’ contracts. The risk is NOT on the annuity owner. With Variable Annuities, however, in addition to high fees taken out of the annuity principal each year, the stock market risk is 100% borne by you, the VA holder.

In other words:
If You Purchase A Variable Annuity, 100% Of The Risk Of The Investment Is On YOU.

The only way to help protect yourself against this stock market risk with a Variable Annuity is to buy a rider at an extra cost that guarantees* principal protection. With a Fixed Index Annuity, this protection of principal is built in.

When you buy a Fixed Index Annuity, you know from the first day going forward that 100% of the purchase money for that annuity is totally protected* against stock market crashes.

When you are comparing VAs to Fixed Index Annuities, it is crucial to keep these distinctions in mind. They can make huge differences, not just in terms of how much income you have in retirement, but also potentially in terms of how much peace of mind you may have. When you get in touch with us, either by calling (954) 781-2220 or clicking here to fill out a short survey and we’ll call you, you can find out just how much of a difference in income you are looking at.

Would you or your spouse be comfortable owning an annuity that offers little or no protection against the stock market crashes that inevitably seem to happen at least once a decade? In retirement, you don’t have the luxury of time to make up for such losses and to correct mistakes.

I would even advise you to be cautious when considering a purchase of a “low cost” Variable Annuity. The benefits of the low cost VAs may be cancelled out by putting a greater percentage your retirement savings at risk in the stock market. Protection against stock market crashes with these low-cost VAs, may require an extra fee to buy a rider.

When you purchase a Fixed Index Annuity, however, you do NOT have to buy a rider or pay an extra fee to protect your principal** against stock market crashes.

That essential protection is already built in to your Fixed Index Annuity.
Low cost VAs may save you a small amount of money in initial fees. However, the ultimate cost could be losing 20%, 30%, or even more of the value of your VA due to stock market drops. There are VAs which offer greater protection against stock market downturns. However, those VAs also tend to come with the highest expenses of almost any annuity available.

Both Variable Annuities and Fixed Index Annuities offer the possibility of growth beyond a simple rate of interest. You do not buy a Variable Annuity or a Fixed Index Annuity just to receive the guaranteed* rate of 3% interest per year (although when the stock market dives, 3% interest per year can look pretty good).
Variable Annuities offer the possibility of growth over the guaranteed interest rate because they contain sub accounts to accomplish a diversification strategy. Sub accounts can come with additional fees that you can learn much more about by viewing this video.

The way that Fixed Index Annuities offer the possibility of growth is that they can pay an interest rate over the guaranteed rate, based on (but without directly participating in) the potential growth of a stock market index.
The vast majority of all VAs do not use sub accounts based on stock market indexes, but rather offer sub accounts that own individual stocks, therefore exposing you to risk and some of the extra expense of VAs.

How do the fees of Fixed Annuities protect your account value?
The fees and expenses of Fixed Index Annuities don’t come out of your initial purchase amount.

With a Fixed Index Annuity, when you see the return you are guaranteed** to receive at age 65, 70, 75 or whatever age, you will receive all of that money guaranteed**—regardless of what the stock market does in the interim and you will receive all of that money without paying any extra fees.
The only extra costs to you with Fixed Index Annuities are for riders that offer enhanced benefits. And remember that those riders are optional. While many retirees do buy riders on annuities, there is no requirement to do so.
The total fees on Fixed Index Annuities with selected riders normally are less than the total fees on variable annuities.

Retirees should not have to sacrifice security in retirement, but they should also not have to sacrifice their monthly income. The way to overcome these two challenges and be guaranteed* to have both, is to purchase a Fixed Index Annuity.

If one of your goals in retirement is to receive the maximum amount of guaranteed* income in retirement, click here to fill out a short survey and we will happily help you find the most suitable annuity for you with the best contractual guarantees*. 

Committed To Your Education In Retirement,

* Most annuities have a surrender period for the first five to 15 years of ownership; early withdrawal will deplete your principal by the amount of surrender charge still in force. Some of the features that are available to you through fixed index annuities are bonuses, various crediting methods, and allocation options that give you choices for your money. Bonus annuities may carry higher fees and charges than annuities without the bonus feature, and may not pay the bonus in case of early withdrawal.
**Annuity product guarantees rely on the financial strength and claims-paying ability of the issuing insurer.

***Depending on contractual stipulations, the amount of principal withdrawn may affect the amount of the monthly income stream from the annuity.

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