CIS Wealth is now Christian Financial Advisors: Same Team, New Name.CLICK HERE >>

retirement income

It is estimated by many sources, that for the last few years approximately 10,000 Baby Boomers are retiring daily in our country. This is expected to continue for at least the next ten years.

As I meet with new retirees, I find their biggest fear during retirement is running out of money before they run out of life. They have seen first-hand what a stock market bust like 2001 and 2008 can do to their 401k’s and IRA’s, and that’s the last thing they want to see happen to their retirement nest egg while they are withdrawing an income from it.

This is probably the reason today why you can’t turn on the radio, go to your mailbox, check your e-mail, or turn on your TV without hearing another infomercial about annuities. And rightly so, because annuities can offer a guaranteed retirement income for life that you can’t outlive.

But, the problem with annuities is almost anyone can decide one weekend they would like to sell them for the high commissions many of them offer, take a 3-4 day course that week and be selling them the following weekend without knowing anything about what they are actually selling and even call themselves a “Retirement Income Specialist” just because they can sell an annuity.

Annuities are only one financial product of many and like any other product you buy, there are good ones, bad ones, and some in between. I am sad to say that in my 22 years of experience offering annuities, I have seen very few that are to the client’s advantage, but I have seen many annuities that are to the advantage of the insurance company and the person selling them to receive a high commission. Those that only sell annuities are not under the strict disclosure guidelines of one that is also licensed in securities. Never, ever buy an annuity without seeing a full spreadsheet showing you cash surrender values year by year. And, there is no guaranteed 5-6% return or 100% stock market participation. If you hear these statements without disclosure and all the strings attached to these promises, run away from that person as fast as you can. It is NOT the whole story.

Many are looking for retirement solutions and can be lulled in from all the flashy radio infomercials. Be very cautious and careful of anyone that only sells annuities. It’s like the car dealership that only sells their brand. Do you think a car salesman at a Ford dealership wants to sell you a Chevy? This is why when I buy a car I like to use an independent person I can pay to help me find what best fits my needs.

So, what are you to do for a guaranteed retirement income? An annuity can be one of the solutions, but not the entire solution. An annuity will lock up the dollars you put into it for many years with a penalty. Never put more than 50% of your retirement dollars in an annuity. Instead diversify it over many types of investments. With my 22 years experience in annuities, and because I am independent regarding investment product choices, I look for annuities that are the best for the client, not the insurance company or the commission it pays for my personal pocketbook.I just figure it this way: do what is best for the client, not for me, and in the long run I will have a client for a lifetime, not just a quick sell and commission. Call me for more information 830-609-6986.

*Guarantees are subject to the claims-paying ability of the issuing insurance company. Investing in a variable annuity involves risk of loss—investment returns, contract value, and, for variable income annuities, payment amount are not guaranteed and will fluctuate.