Is my money safe in a fixed indexed annuity
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Is my money safe in a fixed indexed annuity

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Tracy Mitchell, Mitchell & Associates President.

Tracy Mitchell, Mitchell & Associates President.
Springfield, MO.
Tracy Wayne, Missouri.

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    Is my money safe in a fixed indexed annuity Is my money safe in a fixed indexed annuity Document Transcript

    • "Is My Money Safe in a Fixed Indexed Annuity?" A survey conducted by Financial Research Corporation revealed that 36% of financial advisors said that more than half of their clients had asked them about guarantees. The fact is that with the risks associated with stock market investing and with the amount of retirement savings clients have lost, their concerns about safety have been heightened. So, how can I help clients understand how the safety features of fixed indexed annuities are more secure than just about anywhere else they could potentially invest their money? Annuities put it in writing. Most other financial products don't put in writing that the principal is guaranteed, fixed indexed annuities do. You can go to the sales material and the contract of any fixed or fixed indexed annuity, and they will include statements that money in the annuity is not subject to market risk, that the interest credit can never be negative, and that the principal amount is guaranteed. The only way the owner can lose principal is to choose to take premature withdrawals that would be subject to a surrender charge. Annuities are backed by all of the carrier's general assets. It is extremely irritating for clients to see that they have lost a ton of money but their financial provider walks away losing nothing. Fixed and fixed indexed annuities are not walled off from the carrier's general assets the way assets in variable annuities or mutual funds are from their providers. Carriers providing fixed andjixed indexed annuities are obligated to use all the carrier's general assets to make annuity owners whole. Annuity companies are strong. That is because annuity companies, as a whole, are conservatively run, and are tightly regulated by state insurance regulators. Even the companies that have been exposed to bad financial press in the past have subsidiaries that remain strong and well-capitalized thanks to the legal and financial protections they were required to keep in place for them by state insurance regulators. Annuities arc backed by state guaranty associations. When I deliver the annuity contract to my client, it will include a notice from their state guaranty association talking about how it backs the annuity if the carrier fails. This is important protection, and it can help you feel more comfortable with your decision. Your regulator is local. Imagine that you have a problem with your bank or your stock brokerage. Where is your regulator? The majority of these are regulated at the national level, so you are dealing with a huge bureaucracy in Washington, D.C. If you have a problem with your annuity provider, where is your regulator? At a much smaller, more accessible agency in your home state. As a result, with annuities, it is simply easier for consumers to get a government regulator involved if they feel the need, and that is a very important safety advantage of annuities. There is no other financial product that combines all of these important safety features. The more a consumer values safety, the more that fixed and fixed indexed annuities should appeal to them. To find out more about this and other topics visit Tracy at www.retirementexpertmissouri.com Or call him at: 1-417-429-0331 'The highest compliment I can ever receive is a referral from my clients and friends" -Tracy Mitchell