Annuity FYI Visitor Blog

According to “John Hancock Annuities Adds E-Delivery Options to Award-Winning Website,” John Hancock Annuities’ electronic delivery options aim to help advisers more closely monitor their clients’ accounts.  The company’s website has already won awards for ‘Public Home Page Navigation’ and ‘Client Account Information’, among other things.  John Hancock Financial is one of the United States’ largest insurers, offering fixed and variable annuities, life insurance, mutual funds, long term care insurance, 401k plans, and other types of business insurance.  They are a unit of Manulife Financial Corporation out of Canada.

Since financial advisers are constantly looking for better ways to monitor their clients’ accounts to make any necessary changes, these new e-delivery options are regarded highly.  One of the options is “Email Alerts”, where advisers will get notification the day after financial transactions occur.  With “Recent Activity”, advisers can look at the most recent week’s business transactions.  They can be set up easily by financial advisers and can be customized by different types of transactions.  Payments, withdrawals, changes in fixed annuity rates, exchanges, and fees can be tracked online through John Hancock’s website.  These new e-delivery features help the financial industry move forward.

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.

In “Applications Now Available for Military Spouses to Become Accredited Financial Counselors,” a FINRA news release, a program highlighting the FINRA Investor Education Foundation Military Spouse Fellowship Program is explained.  The FINRA Foundation’s goal is two-fold.  They aim to give military spouses highly marketable job skills to help earn money for their family along with helping educate the military community as a whole.  A lot of the military families out there struggle with high debt and a lack of retirement planning, so the hope is that this free training and certification process works to change that.

Since the program started five years ago, 188 people have graduated as Accredited Financial Counselors.  Military spouses help in volunteer and paid positions with everything from finding the best fixed annuity rates to developing plans for retirement.  Participants are required to finish the course and work for at least two years in the financial counseling field.  This Spouse Fellowship Program is available for current and surviving spouses of both active duty and retired service members.  They can be Army, Navy, Marine Corps, Air Force, Coast Guard, National Guard, and even spouses of U.S. Public Health Service Commissioned Corps or National Oceanic and Atmospheric Administration officials.

Symetra Financial’s press release “Five Steps to Retiring On Time” lists annuities as an important tool for retirement success.  A recent survey conducted by Symetra and two partners showed that nearly half of pre-retirees (45 and older) have not determined how much income they will need to take them through the rest of their lives.  Well over half of the pre-retirees didn’t think that they would be able to retire at their ideal retirement age.  With this information, Symetra has issued five steps that they believe can lead you to a comfortable retirement.

First you should “create a plan.”  Determine how much money you will need in retirement, including medical care, inflation, traveling, and other expenses.  Many estimates show that people need about 80% of their pre-retirement income in retirement.  The next step is to “manage and reduce your expenses now, before retirement.”  Cut costs where you can and pay off your credit card debt before you lose your working income.  The third step is to “diversify your investment portfolio.”  While it still will not guarantee a profit or promise no losses, spreading your investments over different products and investment styles is the best way to protect against the market.

Next you should “continually evaluate your investments.”  Changes in your life, health, job, and other areas make it important to reevaluate your goals and risk levels.  The final step is to “consider creating a guaranteed income stream during retirement.”  Annuities are one of the best products to ensure that you do not outlive your savings.  Always check fixed annuity rates and variable rates because you can find great products out there to help you in retirement.  By using a portion of your savings to purchase an annuity, you guarantee a monthly income stream coming in for life.

The FINRA (Financial Industry Regulatory Authority) Foundation has some financial advice for all of us as we move along in a new decade.  FINRA’s news release this week was entitled “FINRA Foundation Issues Seeking Solid Financial Footing for the Next Decade: 10 Tips for 2010.” This advice released by FINRA’s Investor Education Foundation is meant to help people regain financial footing.  The Foundation’s recent ‘Financial Capability Survey’ highlighted the financial mistakes that many Americans are making.  From engaging in behaviors that carry excessive fees to being unprepared for financial emergencies, the FINRA Foundation realizes that many Americans need sound financial advice.  They hope that this new decade will bring better financial decisions to keep us all out of another financial meltdown.

Some of the highlights are as follows.  Research financial products by shopping around.  Whether looking for the best fixed annuity rates or credit card offer, take your time and compare products.  Determine how much money you need to save for retirement well in advance of needing that money.  Make every attempt not to overdraw your bank account because overdraft fees are high and are a waste of your money.  Use 529 plans and other tax-advantaged accounts to save for college education.  Take advantage of the plans the government has in place to help you save more.  Perhaps the most important is to have an emergency fund for at least three months worth of expenses.  Any layoff, emergency, or illness can put you in a bad financial spot without some money saved up to get you through.  FINRA hopes that Americans will follow their financial tips towards a secure decade starting this year.