Posts Tagged ‘ Annuity ’

The following IRI survey comes as no surprise to retirement income planners who witnessed their annuity client’s relief and security while they heard stories of large losses from their friends and associates in the aftermath of 2008’s financial meltdown.   Not only did these clients not lose any money or income; they experienced strong growth as the market indexes slowly recovered.

Insured Retirement Institute survey, by IALC

According to a recent survey by the Insured Retirement Institute (IRI)  of Americans aged 50-66, a majority (53%) of annuity owners are extremely or very confident that they will have adequate income in retirement, compared to less than a third (31%) of non-annuity owners who say the same.

And not only are these consumers more confident, they are also satisfied with their annuity purchases. A recent LIMRA study found that 83% of fixed indexed annuity buyers reported being satisfied with their annuities and five in six would recommend annuities to others.

So what’s driving people to buy fixed annuities, in particular? Certainly the 2008 crash taught consumers that their foundations are not as sturdy as they once thought. So in order to regain a sense of stability they are looking for sources that provide some minimum guaranteed income. In fact, when asked about the intended uses for indexed annuities in another recent LIMRA survey, respondents’ top three responses involved retirement planning, including supplementing Social Security or pension income, accumulating assets for retirement, and receiving guaranteed lifetime income.

For help you may ask questions in the comments

Or click here to contact me privately: Tim Barton Chartered Financial Consultant

Once upon a time retirement was simple you could count on money from a pension and Social Security with bit of personal savings.  Not any more.  Pensions have mostly gone away causing you to depend on Social Security and personal savings more than in previous generations.

Personal savings

• 401(k)
• IRA
• Stocks

In the last few years people have found these to be risky and have lost a significant portion of their retirement savings forcing them to postpone retirement and work longer.

Retirement Realities

• Save more you may need to save more than you think because we are living longer than ever before you may live 20 years or more in retirement. So you have to make sure your money lasts as long as you do.
• You may need to retire earlier than you plan due to a job loss or poor health.

Longer retirement means higher living expenses

• More leisure expenses
• Increased medical cost
• Inflation

Active money management is required

• Seek clarity determine how much money you have saved and how much money you’ll need each month
• Access your comfort level.  How worried are you about thought of losing money?  If it keeps you awake consider protecting part of it.
• Think about the cost of living and how increases over time.
• Plan for certainty make sure you will not run out of money no matter how long you live.

To help learn and think about the new retirement realities watch this short educational video.

For help you may ask questions in the comments

Or click here to contact me privately: Tim Barton Chartered Financial Consultant

Some times life insurance policyholders forget to inform their beneficiaries that they have taken out life insurance that lists them as beneficiary.   At other times the primary beneficiary knows about the life insurance policy but the contingent beneficiaries are not informed.  Should there be an accident that kills the policyholder and primary beneficiary such as an auto crash involving husband and wife. The contingent beneficiaries are left in the dark about the existence of the policy.

Filing a claim is the beneficiary’s responsibility. Due to the lack of knowledge about the in force insurance beneficiaries leave millions of dollars in life insurance proceeds unclaimed.  Insurance companies want to pay these claims that are rightfully due.  If the claims are never filed eventually the funds of the policy reverts to insured’s home state’s lost property account.

There is no statewide database of insurance policies so the beneficiaries are on their own.

Check deceased’s

• Safety Deposit Box
• Financial Records for any payments made to an insurance company
• Address Book for adviser, insurance agent, accountant or planner.

You can view a short video by the  Insurance Information Institute here.  http://www.incomesafety.com/?p=369

You may ask questions in the comments or contact me privately Tim Barton, ChFC