Annuity FYI Blog

InsuranceAgents.com’s Rafael Onak, describes how to avoid living longer than your income in “Single Premium Annuity: Secure Your Financial Future.”  Annuities are insurance products that help to guarantee you will receive income for the rest of your life.  While some annuity purchasers pay small amounts over time to reach the specified purchase price, others prefer to make a lump sum payment which is called a single premium annuity.  The minimum investment required is usually anywhere from $5,000-$10,000, depending on the insurance company from which the annuity is purchased.  If you choose to defer receiving your monthly payments, the annuity can earn interest for you which will be paid out along with your initial investment.

There are many ways to find the money for purchasing a single premium annuity.  Funds from the sale of a house or other property, the sale of investments or 401k annuities, an inheritance, a life insurance payout, or other retirement plan payouts are all good ways to obtain the funds for purchasing an annuity.  A single premium annuity is best for those looking for a safe way to obtain guaranteed income for life.  You want to purchase an annuity with the plan that you will not take the money out prematurely because there are strict penalties associated with that.  Speaking to an expert is the best way to determine if an annuity is right for you.

Prudential’s company press release “Prudential Annuities Names Tim Seifert Vice President and Director of National Sales,” announced Tim Seifert’s new position with the company.  Prudential Annuities is the domestic annuity business for Prudential Financial.  Hiring Seifert for this position aims at helping Prudential Annuities reach their goal to be the leader in the guaranteed retirement income business.  Sales planning and execution over independent broker dealer, wirehouse, bank and agency distribution channels will be Seifert’s main focus.  He will also be in charge of the national sales managers, National Sales Desk and Business Development Desk for Prudential Annuities.

Prudential Annuities parent company, Prudential Financial, Inc., is a leader in the financial services industry with over 50 million customers entrusting them with the growth of their wealth.  Products and services include annuities, life insurance, mutual funds, investment management, and retirement and real estate services.  Compare annuities from Prudential Annuities when looking at your retirement income options.  Prudential asserts that they have stood the test of time because of their strength, stability, expertise and innovation, just like their Rock symbol.

Annuities are retirement products that give guaranteed lifetime income for less risk than many other products out there.  So it makes sense that women and middle class Americans are purchasing annuities more than anyone else.  Michelle Samaad of the Credit Union Times wrote “Middle Class, Women Favor Annuities” based on recently released information from a Gallup survey.  Non-qualified annuities seem to be the retirement products of choice for both women and households with income below $100,000.  Out of the 1,003 annuity owners polled, 80% of them were considered middle class, while only 4% had a household income greater than $200,000.

The average annuity owner was found to be a 70-year-old female and almost 60% of the non-qualified annuity owners were women.  The majority (69%) of the annuity owners are already retired and their average age is 70.  Both of those numbers increased between the 2005 and 2009 surveys from 58% and age 66, respectively.  The main reason that annuity owners cited for purchasing the products was the security it provides in case they or their spouses live beyond their life expectancy.  Almost 80% say that their annuities help them feel comfortable about their retirement during difficult financial times.

Many investors who put their savings into stocks were losing sleep as the value of their nest eggs plummeted together with the stock market in the past twelve months. But those investors who had been skeptical of the unsustainably high returns on equities and instead invested in annuities could sleep well. Variable annuities offer a guaranteed payout, and their holders therefore do not suffer from market downturns. The safe nature of annuities makes Leslie Scism of The Wall Street Journal conclude that, “annuities have turned out to be among the best investments of the past decade.”

For a link to the complete article, please click here.

LPL Financial has chosen Guardian as a strategic partner for their Retirement Plus Program, according to “Guardian Selected as Strategic Partner for LPL Financial’s Retirement Plus Program.”  This press release, from the Guardian Life Insurance Company of America, says that as one of the biggest and longest standing mutual life insurance companies in America, Guardian will make their best annuities and 401k plans available to a wider audience.  LPL Financial is the “largest network of independent broker-dealers in the nation,” providing the best products for retirement and a support system for independent financial advisers who are focused on retirement plans.

Exhaustive research was done on numerous companies before Guardian was selected by LPL Financial.  Guardian’s Retirement Solution Business recently underwent a large transformation which added to their senior management staff, improved their product offerings, and increased their entire sales force.  This partnership will make Guardian’s wide array of retirement products such as 401k annuities available along with adviser training and additional marketing for LPL Financial.  Both companies believe this partnership will help them meet their goal of providing clients with the highest quality and most flexible retirement products they can.