Annuity FYI Visitor Blog

The Los Angeles ABC affiliate’s Ric Romero just did a piece about why “Annuities are perfect for some investors.”  The story describes a California woman whose husband died on Christmas Day, leaving her struggling with the thought of paying the bills without him.  After seeking advice from an investment advisor, she found that the best annuities for her would not only protect the principal money left by her husband, but also give her a lifetime stream of income and avoid the stock market risk she didn’t want.  The main advantages for investing in annuities are the lifetime income stream, protection against inflation, and protection of your principal.  Annuities are not perfect for everyone though because your money is locked in and you may not get as high a rate of return as with other investment products.

But the California woman highlighted believes that her annuity is the best product to make her money last the rest of her life.  Her adviser from Kennedy Wealth Management said that an annuity was right because of her age and the fact that this was the money she had and she needed to make it last and protect it.  With immediate annuities, the principal is locked up forever and you receive payments like a traditional pension plan.  Variable annuities are linked to the stock market and can have higher fees than other types.  Fixed or fixed-index annuities have a stated rate that is usually a touch higher than bank rates.  They also can be linked to a stock market index, giving the potential for higher returns.  While annuities are perfect for some investors, they are not right for everyone and a decision should be made to purchase after speaking with an expert about your situation.

Wells Fargo’s new SGI Wise US Index Equity Linked CD is Annuity FYI’s top pick for this investment vehicle.  The equity linked CD is a great investment choice, especially with people who have a six year investment window.  Equity linked CD’s have the added benefit of being FDIC insured which is a comfort to many investors.  They are also linked to the market so that you can reap the rewards of a market upswing.

There are many reasons that Annuity FYI recommends the Wells Fargo wise indexed cd.  Not only is your principal guaranteed by Wells Fargo, it is also insured by the FDIC up to their maximum amount allowed.  With no cap or spread, this equity linked CD boasts 90-110% participation.  The index is easy to understand and transparent to investors.  While the SGI Wise US long-short index is new, it has been tested back to 1992 to determine the returns investors would have received.  With this information, it was determined that the SGI Wise Index performed above the S&P 500 over many timeframes.  Investors have the potential to do much better than the current low interest rates have been offering.

There a few things to consider when you compare equity linked CDs.  You do not want to purchase the product if you will need your money before the six year holding period is up.  While the 1% penalty isn’t that significant, it is best not to make withdrawals until the CD matures.  Any gains you receive will be paid at the end of the six years and there are no dividends.  With those considerations, if you think an equity linked CD may be right for you, contact one of our experts.

From the Financial Industry Regulatory Authority (FINRA)’s news release, the “FINRA Investor Education Foundation and the American Library Association Announce $1.5 Million in Grants to Public Libraries to Support Grassroots Financial Literacy.”  There are 19 libraries receiving the $1,522,122 through the program ‘Smart investing@your library’.  Providing the public with financial education information is the program’s goal.  This is the third year for ’smart investing@your library’, whose goal is to help library patrons with small and large financial decisions free of bias.

The library programs implemented with grant money are meant to help all ages of people, from youth just learning about money to senior citizens looking to compare annuities for retirement.  They also target low-income citizens and immigrants that are new to America with education programs.  The education programs include online learning, teaching in classrooms, individual clinics, and other online educational activities.  Libraries receiving these grants also partner up with other organizations to extend community education even further.  This includes schools, colleges, local government, and veterans clubs.

Grants are not only given in urban communities but also suburban and rural areas as well.  People often turn to free services like libraries when they are struggling economically.  With grants from FINRA and the ALA, libraries can better serve and educate these citizens about their finances and help to either get or keep them on track.  Whether they need information on annuities, credit cards, saving for college, or just budgeting; ’smart investing@your library’ is there to help and educate.

AXA Equitable Life Insurance Company has a new financial training program called “Cracking the Code,” according to PR-Canada.  AXA Equitable’s unit for annuity wholesale distribution, AXA Distributors, LLC, created this curriculum for professionals to continue their retirement income planning education.  The materials for self-study and presentations have been approved for continuing credits in 49 states.  Since growing savings before retirement is only half of the big picture, investors are looking to their financial advisers to help them make decisions that will keep them financially secure throughout their lifetime.  “Cracking the Code” aims to help advisers guide their clients from pre-retirement all the way into the asset distribution phase.

The “Cracking the Code” guidebook takes financial professionals through all the necessary steps to help their clients through retirement.  It explains how a client’s personal savings works into their retirement plan and information about IRA use.  There is also information regarding Social Security and Medicare benefits that affect retirees.  There are different strategies for dealing with risk including using the best annuities and other financial retirement products to guarantee future income streams.  Advisers will receive information about running a successful practice, such as help with marketing and time-saving tips.  With the use of AXA’s “Cracking the Code” information, advisers can be better equipped to help clients with every aspect of their retirement plan.

In the NWI Times article “SEC’s new Web site is investor-friendly,” correspondent Joe Pellicciotti says that the SEC has developed a new website aimed at helping investors become more informed.  Since the mission of the U.S. Securities and Exchange Commission is to protect investors, they hope that investor.gov will help new investors make wise decisions regarding their money.  The website is available in both English and Spanish.  It also includes links to the SEC’s complaint center for investors and an area where investors can ask the SEC specific investing questions.

In the “Getting Started” section of the website, the SEC offers information about asset allocation, rebalancing, diversification, setting goals for investments, figuring out risk tolerance, and other beginners information relating to the risks and benefits of investments.  They introduce investors to 529 plans, mutual funds, and online brokers.  There is an area specifically for seniors that explains different options for retirement and gives information about variable annuities, selecting a financial adviser, and basic investing information relating to seniors.  Another section of the website helps investors protect their money by avoiding common mistakes and fraud, researching brokers and advisers, and dealing with problems that arise.  There is a wealth of important investment information for those who are looking.