Annuities are popular investment retirement vehicles sold by many life insurance companies. They can be used for retirement savings or as an alternative investment strategy. Today, many companies generalize all annuities by downplaying their benefits and fail to specify the type of annuity being referenced. The type of annuity these companies are referring to are variable annuities, which have extremely high expenses and fees. Fixed and Fixed-Indexed Annuities can play an important role in a well diversified portfolio, whether an investor is risk adverse or not.

Annuities | Investment Funding Strategy | Registered Investment Adviser

What about Annuities?

As you develop your investment funding strategy, Association Financial Services can work with you to offer their expertise and knowledge to help meet your long-term goals. We advise on the most suitable savings method for you to meet your savings goals, while utilizing state and federal tax saving strategies.

There are six good reasons to consider if you wish to purchase an annuity.

  1.  You have a level of anxiety, discomfort, or stress investing in the market.
  2.  You want to know how much interest you’re going to make.
  3.  You want guaranteed and predictable income.
  4.  You can’t get life insurance.
  5.  You are seeking additional or supplemental long-term care protection.

Finally, annuities should be seriously considered as part of a complete investment portfolio, as they typically offer higher interest rates compared to a CD offered by a local bank or credit union.

Fixed Annuities offer a guaranteed minimum interest rate (GMIR).

Fixed Indexed Annuities (also known as Equity-Indexed Annuities) offer a GMIR, plus the potential of higher returns when the value of a correlated market index increases.

Variable Annuities are typically not a wise investment choice. We usually don’t recommend them due to extremely high mortality expense (M&E) and administrative fees. VAs are an extremely expensive way to invest in the market, if that is the underlying goal. VAs may be advantageous due to step-ups in an enhanced death benefit rider, if you don’t qualify for traditional life insurance.

Final Note: FAs and FIAs are wonderful products offering investors seeking a GMIR, upside potential if correlated against a particular market index and down swing guarantees when the market goes haywire, or simply for investors who are risk adverse and not interested investing in the market. Most annuities offer 10% penalty-free withdrawals per year and waivers for long-term care or terminal illness. Annuities can typically be exchanged for another annuity without tax consequences.

Educational Workshops

► 403(b) Plans
► Social Security Planning

Due to the COVID-19 pandemic, all workshops have been suspended until further notice.

Association Financial, LLC, and Association Financial Services, LLC, can provide you with a wide range of advisory services (whether fixed or variable investments), including:

  • Annuity selection (fixed or fixed-indexed)
  • Assistance in deciding when to buy and sell your investments
  • Review of insurance and investment portfolios, as well as transferring assets or qualified plan rollovers
  • Individual bond, commodity, equities (stocks), ESG stocks, Exchange Traded Product (ETP), investment trust, and REIT selection
  • Strategic asset allocation strategies including re-balancing
  • Attorney and CPA services
  • and much more.

Contact us here for more information.

Investing in securities involves risk of loss that clients should be prepared to bear.