Annuity Lifetime income Pros and Cons

GUARANTEED LIFETIME INCOME PROS & CONS

About the author: Randy Taylor

Randy Taylor has advised consumers on retirement solutions for over 21 years and has advised financial planners and insurance agents on which companies and products to use for an additional 10 years.  The article and video below are not meant to be investment advice. Please consult with your financial advisor including tax or legal counsel before purchasing any financial instrument.


Question: How Can I have both safety of principal, guaranteed growth, and higher yields than
traditional savings accounts?

The Solution: A fixed indexed annuity offered by and insurance company can do just exactly that if your future goal is to take income payments that are available for life. A feature known as an "income rider can be added to provide a contractual guarantee of lifetime growth to your account combined with lifetime payments that can be as high as 6% for life for a 60 yr. old for example.

Complete details are offered below via video;regarding all types of annuities.

http://www.youtube.com/watch?v=5wFD-b5zwWI

Traditional Safe Alternatives for Retirement :

Bank C.D. accounts:
 ( To compare rates go to: www.bankrate.com)

Pros:
         The deposit is backed typically by the F.D.I.C. for up to $250,000.
         You know in advance  that your principal is protected while the account also grows at a guaranteed rate.
         Bank C.D. rates are typically higher than money market rates.

Cons: There are penalties for early withdrawal.
          The interest is typically taxed as earned whether you spend it or not; unless it is part of a tax sheltered like an IRA.
          Probate Fees: At death the account is often reduced by probate fees unless some estate planning is done in advance to prevent that. The fees of course reduce the amount of money available for your heirs.

Bond Funds:

Pros:

          Interest crediting if held to maturity is often higher than bank cds.

           They are issued by the federal government or corporations.

Your advisor can search for both higher yielding bonds that  might have risk involved or for bonds with a higher safety rating.

Cons:

           If you have to sell the bond early during an inflationary period, you might have to sell at a discount and are not used for retirement purposes as much as a vehicle designed specifically for retirement.

Insurance Annuities: 

There are over 1,200 companies offering insurance annuities in most states.They typically look like a bank c.d. in that they have penalties for early withdrawal  and usually have minimum guaranteed interest over a set term such as 5 or 10 yrs.

Pros:
          Safety:
                     Annuities offer safety of principal if held until the end of the term period.

                     There are typically no upfront fees unless an income rider is attached.

                     Income rider fees do not reduce the guaranteed income payment.

                     There are normally no probate fees at death and the money goes to a named beneficiary

                     An income rider guarantees a scheduled payment after as little as 1 yr. of deferral that is                                typically higher than money market, c.d.s, bonds, or other safe investments. Some companies                        guarantee that the account will grow in 5 years to 1505 of the deposit and in 10 years to                                225%; if used for level income payments for lifetime income.

The bottom line: The penalties for early withdrawal are longer with a fixed indexed annuity than they would be with a c.d. for example; but as a result: the annual crediting is much, much higher.. I personally feel that they are best suited as a long term spending vehicle that they are for short term accumulation in most cases. Therefore, I always tell my clients to consider adding the income rider which provides an annual crediting to the account of 6 % compound interest with many companies, regardless of what the stock market index credits.  It is frankly hard to beat 6% compound creditng with a 6% payment for life for someone in the baby boomer age bracket. For more details; refer to the video link above; and contact me via the links below:

Phone number: (916) 601-5270
California Residents only.
Facebook Business Page: https://www.facebook.com/RandyTaylorFinancial

How to get guaranteed life time income from an annuity

How to get the safety, tax deferral, and guaranteed lifetime income tax deferred annuity savings accounts.

Older traditional annuities versus, the newer more flexible annuities with income riders

In the past and still offered now; are programs where you can take immediate guaranteed lifetime income
from a savings account backed by an insurance company or payment for a set period such as 10 years only. The payment amounts are based on your age and which payment option you choose...(10 years only, lifetime only; etc.)

With the traditional plans you can not change your mind if you want to get at any principal and interest that is not yet spent; should you need it. You trade access to the deposit in exchange for lifetime income payments.

Newer plans also offer lifetime guaranteed income but with other options

Tax deferred growth
Avoidance of the added expense of probate, a will , or trust in most cases. See your attorney.

You can get at cash in your account that has not been spent, should you decide to cash in any balances in stead of continuing to receive payments.. See policy for details.

The optional income rider is priced at about 3/4 of 1% per year.

The rider cost does not reduce your retirement payment and only applies to you accumulation account
which is available at death or at partial or complete surrender.

The income rider is very well suited for those that  want to take income payments rather than a a lump sum.

With some companies the guaranteed crediting for the account used for income payments can be as high as 6% until spent. Some companies only guarantee the crediting for the first 10 yrs. so you would want to see your advisor before making decisions on any annuity regardless of your goal.

For more details; see your financial advisor and/or insurance broker. For people that might want to defer
taking income until required by the IRS etc
, I have attached an example of a program well suited for many that want the option of a level income payment or one that increases with inflation below:

https://www.allianzlife.com/annuities/fixed_indexed_annuities/masterdex_x.aspx

With this and all financial decisions you should see  the advice of an experienced, insurance broker,
tax advisor, and/or an attorney experienced in insurance matters.

To contact the author, Randy Taylor, or to schedule as a speaker :
freeestimates71@yahoo.com
https://www.facebook.com/RandyTaylorFinancial
Linked in Recommendations:http://www.linkedin.com/in/randytaylorlifeandannuities

Creative commons copyright 2/28/2014
Randy Taylor
Licensed agent/broker since 1983
Ca. Lic. # 0643596

When Should You "Rent" Term Life Insurance?

About the Author:

Randy Taylor has Advised consumers on both term life insurance and permanent life insurance for over 30 years and has also advised stock brokers, financial planners, and  insurance agents on which companies & products to select for different client situations for an additional 10 years!
Published since 1998; quoted in Forbes.
California License # 0643596
Copyright 1/31/2014, All rights reserved
California residents only: Call for estimates at 916-601-5270

When Does Temporary Term Life Insurance Make Sense?

The answer is simple; when you have a temporary need for life insurance; 30 years or less.  One of the newer,more cost effective types of term life insurance are absolutely the best solution. Let's look at some examples of which types of insurance are best for temporary insurance needs:

Newlyweds or new couples that are on a limited budget.

If a couple has shared debts that would have to be paid off for the benefit of the survivor; then a simple
program with a rate guarantee as short as 10 years might make sense.. The strategy is to have enough life
insurance to replace the lost income of the main bread winner,or to insure both parties..The solution is to use the least expensive plan at the time that provides adequate coverage until they could afford a more permanent solution.
Most temporary term plans also provide an option to trade the policy to a  permanent one later; without having to re-qualify for the same good health rating. That means no new exam is neeeded for a permanent plan in the future.

Business owners in a new business or partnership

If a business is new and short on cash flow, a term policy designed to be kept for only 10 or 20 years works very well. The money that comes income tax free to the beneficiary can be used to pay off a creditor, to buy any remaining business interest from a partner's spouse; or can be used as collateral for an SBA loan in many cases. An experienced insurance broker and or attorney can  advise you on how to structure the beneficiary wording or buy-sell contract to make for the best use of the money.

Mortgage Life Insurance for Home Loans

There is a new  concept available that I like for those seeking coverage equal to a home loan debt where the loan obligation is for 30 years. If a client is 50 years old or younger; many companies offer a plan  that has  a  low premium guaranteed to stay level for 30 years. All premiums are refunded as per contract conditions if the  owner wants to cancel the insurance after 30 years and ask for a "return of all premiums paid".
If the buyer cannot afford a 30 year return of premium plan a straight 30,20,15, or 10 year plan with no premium return options are available at a lower initial premium.

Summary:

No one  insurance company or insurance plan is ideal for everyone; but for temporary needs it is best to get temporary insurance. Also seek rate estimates from an experienced broker than can recommend a solution for you based on both your health, ability to qualify, and your insurance needs. Often "renting" insurance rather than owning a permanent plan  is better.
The above article is meant for entertainment purposes only; and you should consult with your insurance broker and other financial advisors before purchasing any financial or insurance products.

Randy Taylor, Author
Copyright 1/31/2014 All rights reserved
Follow my blog :http://randytaylorfinancial.blogspot.com/
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Life insurance and I.R.A. Account Specialist

Serving clients and brokers since 1983
(916) 601-5270

Reverse Mortgages, A Problem or a Blessing?

About the author:

Randy Taylor was first licensed as a registered representive, and  insurance  agent  in  1983. He was first published in 1998. He has also spoken to financial advisor groups since 1995. California insurance Lic. # 0643596
Author: Randy Taylor Copyright 1/17/2014 , All rights reserved.

What is a Reverse Mortgage?

A reverse mortgage is a loan vehicle that unlocks or makes available part of the equity in a home to provide
seniors with cash flow to supplement their retirement.
Like any other financial decision you would need to consult with an  attorney, tax person, or financial consultant before making  any decisions.

How do they work?  When you qualify, the equity you have built up can be paid to you and then used for any purpose while the home owner gets to continue living in the home without the need  to make their monthly mortgage payments.

What are some of the Advantages?

The borrowers do not  have to repay  the loan until the borrower no longer uses the home as a primary residence; or until they do  not meet the obligations of the loan.

The loan can be used  to purchase a primary residence if you are financially able to pay the difference between  the loan and the home purchase price,closing costs etc.
  
The borrower does not have to qualify for the new loan based on income guidelines.

Unlike a line of credit; you do not have to make payments..Instead  the loan pays you.

You still own  the home and must live in it.

What are some of the requirements?

The key issue is you have to own  the home outright  or have a high  equity position.

You must be 62 years old or older

You are still liable for taxes and insurance on your own.

Are there downsides?

Of course there are.. The most obvious is that you are getting  a loan and there will  be costs involved.

Your remaining estate that would be passed on to your heirs will be reduced as you spend the equity.

 You should contact HUD at  1-(800) 569-4287 and also your financial consultants before making any decisions. A counselor will also help when  you apply with required  training. This article is meant to be offered for informational purposes only and not to be  interpreted as financial  advice of any kind.

Confused About Social Security Benefits or How to Apply?

Taking the Stress out of Applying for Social Security Benefits

Blog entry offered by:
Randy Taylor, copyright 1/10/2014; all rights reserved.
randytaylorfinancial.1@gmail.com

Key Things to Consider First:

You have to have attained an age of 61 years and 9 months or older to be eligible to apply.

If you are 62 years or older already; you might be able to start your benefits during the month you apply.

Your payments start one month after they are due.

The government does have excellent telephone support available at: (800) 772-1213

Need more information?  There is relief  in sight!

You can go to this online link for forms, calculators, and detailed information and then call when
you have specific questions.

Here is a helpful site: http://www.socialsecurity.gov/retire2/applying8.htm

Note: This blog entry is offered for information only and not meant to be financial advice.. Before deciding
when to begin your social security benefits; first talk to your financial advisor and/or tax consultant or attorney.

We are also available to help clients in the Northern California area that seek rate comparisons or information regarding safe retirement vehicles to supplement their retirement.

Follow my blog :http://randytaylorfinancial.blogspot.com/
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Life insurance and I.R.A. Account Specialist
Serving clients and brokers since 1983

Government Shutdown Affect on The U.S Economy (916) 601-5270

Short Term Outlook regarding the United States Economy

Author: Randy Taylor, Ca. Lic. #0643596 Randy Taylor has advised financial planners

on insurance and retirement savings accounts, for 10 years and consumers since 1983.

Copyright 10/17/2014 . This may be distributed if not altered in anyway and copied in it;s

entirety.

Video introduction: http://www.youtube.com/watch?v=-PnrMYfKxj0

What Factors affect the market  projections for the next 3 months?

1. Strong earnings for the S&P 500 are reported  this quarter of 2013.. ( Up about 4%)  The chief financial officer for Lensco Private Ledger suggests that they could be up by   7 - 8 % by the end of the year.
2. What about the shutdown?  Most companies will not be affected by the shutdown.
3.  Other factors are more imortant. Earnings and other factors below are more likely to impact the market.
4. Spending cuts, higher taxes, and higher gasoline prices are more important and are an anchor weighing down the economy 
5. Positive factors: The global economy has done better than expected; and the stock market is returning to form.. The housing market is also returning .

What about the nay sayers that are predicting a crash within 12 months?

Economist Harry Dent has had great success in the past predicting economic changes based on things such as population growth and other factors.  He suggests that since a large portion of the U.S. S&P stock index includes companies that are global, ( About 40%) that our market will crash anyway.

You can read his 2014 predictions: The Great Depression 2014, for yourself at: http://beforeitsnews.com/economy/2013/07/harry-dent-2014-predictions-the-great-depression-ahead-2537900.html

What do I do for my own IRA savings account or portfolio if I prefer safety of principal, guarantees of a lifetime income, and growth crediting that is independent of the S&P or other indices?

One solution is to have some of your money in an indexed annuity offered by one of the more competitive insurance companies.. I believe that they are most suited for those that plan to use the accounts as a vehicle to generate monthly or annual income.  You would therefore normally want to ad an "income rider" which gives you a contractual guarantee of a high income payment. You have almost 1,200 competing for your business in most states. You will want to sit down with your advisor and go through a complete suitability review first before deciding on any retirement solutions.

Note: This article is offered for entertainment purposes only; is not meant to be investment advice.. If you decide to invest any money for any purpose it is recommend that you first talk to your attorney, accountant, or financial advisor.

Follow my blog :http://randytaylorfinancial.blogspot.com/
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Life insurance, Legal Shield, and I.R.A. Account Specialist
Serving clients and brokers since 1983
(916) 601-5270

Identity Theft: A Solution, for Victims , by Randy Taylor

About the author: Randy Taylor has completed an additional 20 hours of continuing education on Identity Theft in 2012. He  has  been an insurance  agent with over 20 years of experience advising consumers on insurance decisions and an additional 10 years of experience advising insurance brokers, stock brokers  and financial planners.  Quoted in Forbes in 2012 

Linked in Recommendations:http://www.linkedin.com/in/randytaylorlifeandannuities
Life insurance and I.R.A. Account Specialist
Serving clients and brokers since 1983

Identity Theft Coverage:  Do I need it?  What if I  am already invaded? How  do I solve  the problem?

Identity Theft: 

 The fastest  growing crime in the world: I already have a plan, why would I be concerned if my bank or identity theft plan reimburses me for the loss?

The Answer: 

Identity theft  can include a lot more than simply someone purchasing  items without your permission or draining your bank account.The problems include but are not limited to:

    1.) Time loss in correcting errors or restoring credit:  The estimate from Laws .com is that it takes from 

as little as 3 to as  high as 5,800 + hours to resolve  the  more serious problems.

    2.) Your social security account or your veterans benefits could be affected which could take professional help to resolve.

    3.) People have also had their M.I.B. bureau account  hacked and  have even had their Veterans benefits

invaded and used  fraudulently.

The Limitations of Most Plans: 

 First of all  if your only concern is to get reimbursement for illegal purchases etc.; then your bank or credit card company might  do that for you at NO additonal cost. Therefore many plans are not addressing  the real problems:  Compromised credit and hundreds of hours of lost time for letters and phone calls that need to be made.

My Specific recommendation for many people: 

 The world's most respected risk management company; Kroll which investigated Sadam Hussein's bank accounts for the Kuwaiti government can be  a partner to help  you for as  little as under $10.00 per month.

   How does this work? You secure a membership from a national company, Legal  Shiedl formerly Pre-Paid Legal with a simple month to month membership.When you have an identity theft issue; you simply call Identity Shield..They send  you a limited power of attorney; send the letters, make the phone  calls and you then have  a team of experts investigate your problem, and restore  your credit to where  it was 60 days prior to the problem.

I own this plan  myself and  have been in the insurance business for over  30 years and after a careful review; decided to purchase the plan for my own  use  and I  recommend it to all of my clients.  You will of course

want to review the package after purchase since this article is submitted for entertainment purposes only.

Should you purchase a  plan; you will have  time to review it with a specified refund period.

Please call or message me on Facebook for more  information..

This article can be re-distributed if NOT altered in any way.

Contact information and information on free training services:
 www.RandyTaylorMC.com

Follow my blog :http://randytaylorfinancial.blogspot.com/
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Linked in Recommendations:http://www.linkedin.com/in/randytaylorlifeandannuities
Life insurance and I.R.A. Account Specialist
Serving clients and brokers since 1983