Whitefish, MT -- (ReleaseWire) -- 12/26/2012 -- In April 2012, the Social Security Trustees issued a report stating that the Social Security Trust Fund was expected to run out in 2033. Over the past few months though, this date has been moved forward by many experts as the economy deteriorates and low rates prevail.
According to Nathaniel M. Pulsifer of Annuity Straight Talk, Investors need to take a close look at their retirement income strategy, and not leave their fate to chance. Now is the time to make necessary changes to ensure that money is available when retirement arrives.
Annuities are private insurance contracts, designed for times like these, and turn savings into income that lasts. An annuity is a contract between a purchaser and an insurance company, with the premium purchasing a promise of income and guarantees from the insurer. The company invests the premiums and, at some future date, pays the purchaser a lump sum or stream of income. There are many variations on this basic principle but all annuities share the common thread of shifting risk from the insured to the insurer.
"As with any investment, there are pros and cons of annuities," Mr. Pulsifer explains. "Annuity earnings are tax deferred and have low volatility or risk. Insurance companies are required to maintain significant cash reserves to ensure this safety, and consequently, their place is as a safe money alternative to bonds, CD’s, or Treasuries.”
Pulsifer continued, “Annuities currently yield an average of 2-8% tax deferred, depending on the type and your age. This is obviously much higher than CD’s. There are limitations on liquidity, though, and you should remember that annuities really are insurance. They use a set amount of principal for a defined financial outcome. Most are designed for the long term, and thus, mainstream advisers seem to have an aversion to annuities because they generally don’t require active management. There’s a lot to be considered when determining if an annuity fits into the client's overall investment strategy."
Annuity Straight Talk offers a host of annuities, information on retirement income, and a number of strategies for retirement income planning to ensure a fit into a client's overall investment strategy. "Many clients opt to go with Secondary Market Annuities to ensure a steady income stream for a defined period. Often, the income stream is the result of a lottery payment stream or a structured settlement. Others prefer to purchase Hybrid Annuities which combine multiple types of benefits into one contract," Mr. Pulsifer goes on to say. "When a client chooses this type of contract, they receive the benefits of both immediate and deferred contracts, and some contracts incorporate additional life insurance and home health care components.”
“Our goal is to sit down with each client and review the current and projected financial situation to determine which annuities, if any at all, best fit into the overall retirement plan, so clients can live as they choose in retirement."
About Annuity Straight Talk:
Annuity Straight Talk focuses on guaranteed, safe retirement income, and builds financial plans offering the optimal combination of flexibility, profitability, longevity and safety. The company views any probability of failure in a financial plan as unacceptable. Annuity Straight Talk offers the best selection of annuities while providing exceptional service. An honest assessment of the client's needs determines a floor level of income to plan for, and products are only considered that address specific client needs. Annuity Straight Talk is unbiased and not captive to any specific carrier, strategy, or product, and instead can look objectively at each client’s situation. Annuity Straight Talk is a collaboration of Bryan J. Anderson and Nathaniel M. Pulsifer.