Mark D. Goldstein, CFP
Certified Financial Planner
NEW MEXICO OFFICE
Pueblo Plaza Executive Suites
1100 S. Main, Suite 10
Las Cruces, NM 88005
Intelligent Office Complex
7362 Remcon Circle
El Paso, TX 79912
3701 Algonquin, Suite 150
Rolling Meadows, IL 60008
(877) 442-0698 Toll-Free
"Guaranteed SAFE-Money Solutions for a Successful Retirement!"
More than ever before, baby boomers and seniors have very good reasons to be so focused on annuities. Other than our under funded Social Security program, millions of these folks will have no other source of guaranteed income in retirement.
The problem is that, even though they may have savings (trillions overall), nobody knows how long they’re going to live and, therefore, can't possibly know how much money they’ll need to support themselves for the rest of their lives.
You see, financial planning, as it's being sold to the American public, is not a science. After all, science is based on some certainties. If financial planning was a science, no one would ever have lost money, right?
So guys, let's not get overwhelmed by all the hype that this stuff is some kind of sophisticated science and that the so-called experts actually know what the hell they're doing. In fact, ask yourself this question: When investing in the market, who is the one at risk, you or the person making the recommendation? Hmm.
What people really need is a financial tool that can turn decades of savings into GUARANTEED lifetime income streams!
The history of annuities is the search for that solution.
After the stock market crash of 1929, some of the smartest and wealthiest people in America began turning to annuities as a guaranteed safe place to put their retirement savings.
Annuities really flourished after the tax reforms of 1986, when they became the only remaining financial product that allowed people to save and invest UNLIMITED amounts of money on a TAX-DEFERRED basis.
Today, many big-shot economists and professors of finance are encouraging the baby boom generation (ages 54 to 72 this year) to rediscover the original purpose of annuities and use them to turn their 401(k) accounts and IRAs into guaranteed lifetime paychecks.
So, who, specifically, should consider getting an annuity?
1. People in high tax brackets. These folks love tax-deferred annuities because they can contribute virtually any amount of money they want and still defer taxes on the gains for as long as they like.
2. Middle-class couples in their 50s and 60s who are earning $100,000 or less and have savings of $250,000 or more, but no pension. They are buying index annuities (with guaranteed lifetime income riders) in record numbers because, statistically, there’s a 50% chance that one of them will live beyond age 90.
3. Pessimists (aka: doomsayers, bears, etc.). Millions of Americans increasingly believe that our country’s enormous, highly leveraged “house of cards” (the United States financial system) may collapse at any time. They like the safety and guarantees that annuities provide.
4. Women. Let's face it. Women live significantly longer than men and are, therefore, at greater risk of running out of savings. It’s a fact that single or widowed women are more likely to be poor in old age than single or widowed men.
In the future, as birth rates in developed countries (the United States, Japan, and much of Europe) continue to fall… and the number of elderly rises… a retirement financing crisis will occur. Women, unfortunately, will bear the brunt of that crisis.
The good news is that annuities guarantee a pension-like income for life that blows away any other financial product. There is simply no other financial tool that’s more efficient at converting a sum of money into a monthly income stream that’s guaranteed to last for as long as you live… even if you’re still going strong well beyond 100!
Fixed index annuities (with guaranteed lifetime income riders) are the fastest growing retirement products in America right now because people are living longer and saving less. Plus, as I've already mentioned ('till I'm blue in the face), fewer employers are providing pensions and Social Security benefits are getting trimmed back.
Increasingly, retirement savvy Americans will continue to use annuities to build their own guaranteed lifetime pensions.