So the message here is clear. Given the fact that today’s retirement plans are demanding a much longer period of income distribution, annuities are becoming increasingly popular alternatives.
Many of today’s annuities today offer clients the ability to maintain total control over their assets, both during the accumulation and the distribution phases of their retirement, so they can still choose how and where to invest their hard-earned monies.
Annuities are largely purchased through financial professionals. Although most annuities are owned on a non-discretionary basis (meaning no changes or investment decisions can be made by a financial professional without a client’s prior approval and consent), financial professionals can serve as a valuable resource by making themselves available for their investment opinions and recommendations.
Annuities are NOT For Everyone
Yes, annuities offer multiple features, benefits, and advantages, most of which other investment options simply cannot offer. However, we have all heard the statement that “anything good in life usually does not come free or easy”.
Annuities are very complicated investment vehicles, usually carry higher fees, and are clearly not the best fit for every retiree. My strong advice is to perform extensive research, review and understand all of your options, and of course, know your client – to determine whether an annuity is a good fit.
Latest posts by Christopher P. Hill (see all)
- Annual Reviews are Due - November 13, 2018
- Everything You Need to Know about Long-Term Care Insurance - October 19, 2018
- When Annuities Make Sense in Retirement - April 19, 2018