Annuity. Ask many investors — or advisors, for that matter — what an annuity is and you’ll typically get the list of limitations these products have. This is, in my humble opinion, due to the fact that annuities remain largely unknown and unfamiliar. Still, they are one of the best retirement income planning vehicles available today, taking in billions of dollars in annual inflows. And despite the annuity’s unfair reputation as being illiquid, expensive, tax-disadvantaged, etc., advisors who have a deep understanding of how these complex vehicles work have a distinct advantage over those who don’t. I’m going to share with you some of the resources I think you’ll find helpful in learning more about these ever-evolving products.
We are all aware of the amazing opportunity to capture retirement assets right now, to surf that “silver tsunami.” Annuities are a great way to achieve this. Good advisors understand economics, finance, taxation, estate planning, investing, retirement income planning, etc. Yet the great advisor has honed these basic fundamentals — in addition to mastering the best tools available for solving a client’s most difficult challenges. When it comes to retirement income planning, one of the best tools that I know of is the variable annuity. No other tool can accumulate and distribute wealth like a variable annuity.