Your Retirement Annuity Questions and Comments Answered!

There are a lot of good comments and questions on the recent retirement planning annuity videos that we posted. In this episode I will take the time to answer them for everyone. We'll take a look at the cost of an annuity, a little bit about the legal and accounting and the fees. If and when companies get a kickback from annuity companies. We'll take a look at when an annuity is tax free and when it isn't. And, lastly we'll take a look at why annuities are not FDIC insured.
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00:00 Introduction
00:17 Question 1
02:11 Question 2 Mr. Loco
05:25 Question 3 Ram Barlev
09:16 Question 4 Dave McCune
11:46 Thank You and Contact Us!
Working with a CFP® professional can be an important step toward reaching your financial goals. Not only do these advisors meet rigorous education and experience requirements, but they are also held to some of the highest ethical and professional standards in the industry.
Education
CFP® professionals must master nearly 100 integrated financial planning topics, including:
- Investment planning
- Tax planning
- Retirement planning
- Estate planning
- Insurance planning
- Financial management
In addition to completing a comprehensive financial planning curriculum approved by the CFP Board, or equivalent academic coursework, CFP® professionals are required to complete continuing education coursework, including a CFP Board approved code of ethics course, to ensure their competence in financial planning.
Examination
CFP® candidates must pass a comprehensive 6-hour CFP® Certification Examination that tests their ability to apply financial planning knowledge in an integrated format. The exam is notoriously difficult and only 64% of people who took the exam in 2017 passed. Based on regular research of what planners do, the exam covers:
Establishing and defining the Client-Planner relationship
Gathering information necessary to fulfill the engagement
Analyzing and evaluating the client’s current financial status
Developing recommendations
Communicating recommendations
Implementing recommendations
Monitoring the recommendations
Practicing within professional and regulatory standards
Experience
CFP® professionals must have a minimum of three years experience in the personal financial planning process prior to earning the right to use the CFP® certification marks. As a result, CFP® practitioners possess financial counseling skills in addition to financial planning knowledge.
Ethics
As a final step to certification, CFP® practitioners agree to abide by a strict code of professional conduct, known as CFP Board’s Code of Ethics and Professional Responsibility, that sets forth their ethical responsibilities to the public, clients and employers. CFP Board also performs a background check during this process, and each individual must disclose any investigations or legal proceedings related to their professional or business conduct.
This video discusses fixed income investing and utilizes the 10 year U.S. treasury as a general representative fixed income investment. Conclusions reached, opinions stated, and downside risks and potential returns presented should not be construed as applying to other types of bonds or fixed income assets. Other types of fixed income products carry different levels of risk and return potential and should be evaluated as an element of a diversified portfolio with your specific risk tolerance, investment objectives, and timeline in mind. Nothing in this video is investment advice, an investment recommendation, or an offer to buy or sell any security. Investing involves risk.
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[@hermit400]

Love this series, please continue.

[@urbanart7325]

You can chose the SPIA with no death benefit but you can leave other investments as inheritance for your kids. That SPIA ( pension like) will go together with the social security to pay the bills with investible assets for the kids.

[@miket9670]

Great series, thank you! Income Rider and MYGA tools are integral to filling out our income floor. The balance of our investable assets will be able to fluctuate with the market without affecting our spending levels. To us, Sleep-at-night outweighs ROI.

[@urbanart7325]

My exact sentiment

[@pensacola321]

My SPIA is with highly rated USAA. Lifetime income benefits for both me and wife. A 15 guarantee to our estate if we both die before that. ( Tiny difference in benefit from life only.) I converted part of an IRA for this annuity earlier this year (I'm 72) and we like it. Excellent sleep aid....... You should talk about this option in your series. You might not always get the ultimate payout, but your older clients could be interested....

[@OakHarvestFinancialGroup]

Sounds like your happy Vp and that's good! USAA is a highly rated company, but they have what's called Captive Agents. This means that their products aren't available on the open market. And because of this, their rates and offerings are not competitive against annuities and insurance carriers that have to compete with one another. My best guess is probably 10-20% more income each year would be available from several different highly rated companies. Your highest paying SPIA may be as much as 30% more annual income. I'll do a video on this because people need to understand the difference between Captive Agencies and Independent Agencies.

[@charity7273]

Great convo

[@patbattipaglia2636]

Very educational thank you!

[@OakHarvestFinancialGroup]

Glad it was helpful! Appreciate you commenting!

[@vinceveltri7732]

Thank you for cutting through the typical BS and addressing annuity concerns directly.

[@OakHarvestFinancialGroup]

You're welcome. This entire series will be like this. People need to understand how the industry works and how annuities function. It doesn't mean they are bad financial tools, it just means everyone should learn for themselves and be able to make an informed decision, without any fluff, based on their needs and circumstances. Thanks for watching and commenting!

[@EconMBAStudent]

Love your videos very informative. I need to watch all of your annuity videos, my question is are annuities index linked (time value of money)

[@OakHarvestFinancialGroup]

We will be releasing one of these videos every week for several weeks until we've covered tons of info about annuities. If you watch them all you'll be more educated than most advisors! Not all annuities are index linked, there are numerous types of annuities these days. Some of them can be really powerful, some of them I would avoid like the plague.

[@salusa_secundus]

“Insurance agents” who are not typically fully licensed (series 7) have given annuities a bad name. Many of these agents are part of a multi-level marketing schemes as well.

[@OakHarvestFinancialGroup]

Not all of them are bad, but there are definitely some bad ones out there (those that are only insurance-licensed). Important to know that Series 7 licensed brokers make commissions on most everything as well and are a big part of the industry problem over the past 50 years. Again, not all of them are bad but definitely they are out there. The Series 65 license is what creates the legal fiduciary relationship. In my experience, it's a person's character that makes them either do the right thing or not. They type of license they have doesn't change their character.

[@larryrogers6224]

Would you recommend any insurance companies for an annuity

[@OakHarvestFinancialGroup]

There are lots of good companies. It's more about finding the correct product than the right company. That is done by having a plan and long term strategy driving the selection. Let us know if we can help!

[@zacharyblount5282]

I’m 62 and retired with $57,000 left on my mortgage and $600,000 saved in my portfolio for retirement - should I pay off my home now?

[@salusa_secundus]

Not a good idea. Most of your mortgage payments right now are paying off the principal and it’s probably close to 0-%. If you’re risk tolerance allows it, time horizon, liquidity, it may be wiser to invest that $57K. If it will provide psychological benefit then yes, but try to payoff higher interest liabilities first.

[@urbanart7325]

I like you but I think your AUM is a bit too high for me. I am currently paying 0.6 percent and my current advisor is not a fan of annuities.

[@OakHarvestFinancialGroup]

Thank you for your support! We appreciate that you enjoy our content. Feel free to click the link below to speak to one of our advisors if you have any questions: click2retire.com/annuityquest...