The Dawning of the Age of Annuities

The Dawning of the Age of Annuities

May 2, 2013 – When HAIR: The American Tribal Love-Rock Musical debuted at The Public Theater in 1967 as the venue’s first-ever production, our country’s social fabric was in the midst of a rinse cycle involving some pretty harsh chemicals.

Literally and figuratively.

Just twelve years earlier, the most popular album of the time was Frank Sinatra’s In The Wee Small Hours.

By 1967, it was Sgt. Pepper’s Lonely Hearts Club Band.

Yes, the world was changing.  People were rejecting the values of those who preceded them.  Sacred cows were no longer sacrosanct and established norms were feeling nearly as faded as Bobby McGee’s lover’s jeans.

This was the Dawning of the Age of Aquarius we would soon learn.

Annuities/(Let The Sunshine In)

Fast forward forty-six years and a similar rejection of what’s always passed as conventional wisdom is afoot when it comes to retirement planning.

More specifically, as Sheyna Steiner, writing for bankrate.com asks rhetorically in her weblog “Retiring on CDs Not Viable,”

“Is this (the dawning of) the age of annuities?”

And she’s not talking about compact discs, by the way.

The old rule of thumb that any retiree could choose a sensible mix of stocks and bonds and/or other securities, “draw down” their retirement nest egg 4% each year and have enough money to live on for the rest of their life no longer holds up to scrutiny in a post-Great Recession world.

Side Bar We were ahead of this trend!  For a link to one of our earlier posts on this very same topic, be sure to check out: 

July 4, 2011:  A Paycheck for Life

In fact, sticking with this previous generation’s establish formula could easily lead to financial ruin and even poverty tarnishing those Golden Years you worked so hard to achieve.

The failure rate for this draw down approach, or the probability of running completely out of money while you’re still alive, is estimated to be as high as 57%.

Life annuities, on the other hand, solve this problem for retirees and soon-to-be-retirees.

As we’ve advocated for years, annuities help people sleep better at night since they know the annuity will keep paying as long as they live.  The highs and lows of market conditions do not impact guaranteed cash flows offered by annuities.  Like a pension, you know exactly what you’re going to receive each month for as long as you live.

Structured settlement annuities, for those who are able to take advantage of them, can be even better and offer unique advantages unavailable to the general public.

But for the vast majority of Americans with 401(k) balances or other savings looking to secure their future as sensibly and cost effectively as possible, nothing can replace the peace of mind that comes with knowing that periodic payments, guaranteed by a highly rated life insurance carrier, will be there whether you live to age 75, 85, 95 or beyond.

If you were lucky enough to dodge the 2008-2009 stock market bullet, don’t take chances this time around.  Convert a portion of your nest egg to a life annuity to secure your future.  We have lots of choices available to you.

So call us TODAY for a quote so we can help you align your retirement Jupiter with your life expectancy Mars.

Then, all you gotta do is let the sunshine in!

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