05 Jan Annuities in the New Year
2011 is a fresh start for us all. We all hope that our business returns to where it was and our investments start to climb. In writing this I want to talk about annuities. In the past I have not spent a lot of time on talking investments or financial products, but as I have been doing more over the last few months, I thought it fitting to take some time and discuss them.
At The Paul Long Agency our goals is safety and guarantees when it comes to investing, so we only look at annuities to help you with your financial goals. The thing about annuities is that they are backed by the state of Missouri guarantee fund of up to $100,000, and a lot of people don’t even know that. Everyone always used to put their money in CD’s, but with their decline in return and the shaky state of the FDIC they aren’t as attractive as they used to be. Annuities have several options, liked fixed annuities that are locked in at the same rate for the life of the contract, or for a certain number of years. Also all annuities have a guaranteed minimum, which is never lower than 2.5%. If you want to gamble a bit you can take the Indexed side of annuities in order to gain some on the up side of the financial market, but the beauty of indexed annuities is that you only gain when the market gains and when the market looses you stay the same. Now that’s a switch from standard old investing isn’t it? The only negative part of annuities is the availability of the funds you put in the account, meaning that most annuities will make you keep the money in the account for quite a few years without allowing you to pull out more than 10% of principal per year without penalty. Some annuities come with a rider that blocks this. You can also get some annuities that pay a lower percentage in order to be able to get out of it sooner. Bonus matching has been big in the last several years. What that means is that some companies will pay you up to 10% in a year’s time on every dollar you put in, and also pay you interest on top of that money, as long as you leave the principal in the account for a certain amount years.
Annuities are not for everyone but are a perfect part of the financial ladder. We all need to have balance in our investment portfolio. Call The Paul Long Agency today at 417-777-5664 and ask for rates on available annuities.