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As many of you know I believe that annuities can play an important role in retirement planning. Does that mean that an annuity is always the right choice? Of course not. It's not enough that the purchase of an annuity be deemed suitable, after careful examination of all other alternates; it should represent the best possible solution. Beware of the sales person that only has a license to sell annuities and offers up his annuity as the perfect investment. Their are no perfect investments. Their are pros and cons to every investment (including annuities). It's critical that you be informed about not only the benefits and features but also the potential down side. I can tell you that when I recommend an annuity I spend a great deal of time going over the down side. There are about 2000 insurance companies that offer approximately 15,000 annuity products. I spend countless hours poring over and analyzing annuities and I can tell you that most are simply not very good. Of the thousands that are out their only a few dozen consistently get my attention. Ironically some of the best offerings are usually short lived. Let me explain. The annuity market is very competitive and companies are always one upping each other vying for your money and on occasion a company will offer too much and shortly thereafter will withdraw their offering. Too good too be true? Know, just too good too last. Check this sight often for the most competitive annuity offerings.
First, let's make one thing clear. You should not be considering the purchase of an annuity unless you have fully funded or intend to fully fund your IRA, 401(k), or 403(b) for the year. These investments occur before income tax and are the first step to planning for your financial freedom.
If you have fully funded or plan to fully fund those retirement plans this year and have additional funds to invest, where will you put the money? Mutual funds? Bonds? Annuities? Probably all may be present in a well-rounded, well-managed, diversified portfolio. Read on to learn about some important advantages of annuities that can make them an excellent complement to a well-rounded portfolio. The annuity is a place to invest an unlimited amount of money without paying any current taxes until you start to take money out. You can also use an annuity as a funding vehicle for an IRA, Roth IRA, 403b, SEP IRA, or other retirement plan, if suitable.
So, do your home work, and if you would like a copy of my white paper "The Do's and Don’ts of Annuities" just give me a call or email and I will be happy to send it to you.
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