Media Coverage - Financial Services
Senior Financial Resources wants our clients to be informed about the world of retirement finances, and the many factors that can affect their retirement, IRAs, and the financial world in general. When something catches our eye, especially regarding retirement income strategies, we want you to see it as soon as it’s available.
Here are links to articles that we feel are relevant to what we do.
This clip is from CNBC’s “The Money Line” call-in program wherein an FIA owner, Mark, has been “advised by friends” to incur surrender penalties to get out of an index annuity in which he’s “averaged 5.15 percent per year over five years” without risk – to get back into the stock market (assumed to be going up soon) with risk.
The advisors on CNBC’s panel first laughingly question the source of the recommendation to surrender (“Are they brokers?”), then tell the caller that he “should be thanking the person who sold it to you!” Incidentally, during the five-year period in question (March 17, 2004 to March 17, 2009, the date of the broadcast), the S&P 500 had lost 31 percent of its value. However, Mark (the caller) claims his initial $175,000 is now worth $225,000, an increase of 28.6 percent (or 5.7 percent a year – one of the panelists incorrectly calculates the yield at 5.15 percent during the call). In context, then, Mark “outperformed” the market – up 28.6 percent versus down 31 percent – by a whopping 59.6 percent in five years!
The question no one thought to ask him next is this:
“Mark, given the 59 percent “head start” that your index annuity now has over any assets you might still have exposed to the market right now, how long do you think it might take those equities to catch up to the annuity – especially given that the annuity will also grow in rising markets?”
Conservatively, the answer is 15 to 20 years; realistically it could be never.
The above piece also includes this quote as shared in our seminar: “…(S)tockbrokers and financial planners (often oppose the FIA). Once money goes into an annuity, they can’t earn commissions from trading it anymore and may not be able to charge fees for managing it. (They even) have a charming term for this phenomenon—‘annuicide’. You (protect your holdings), and their revenue dies. …Many of them will try to talk you out of it.” …A nice, rare piece of honesty from the financial media, many of whom happily oblige their mutual fund advertisers.
This CNBC clip from 2010 initially deals with the wisdom/timing of selling BP stock – and what to do with the proceeds. The guest advisor discusses the three “protected places” in which his clients are guaranteed against losses, the highest yielding of which is the FIA. It’s a 1:41 clip, but only the last 45 seconds are relevant to the FIA:
The Indexed Annuity Leadership Council
The Indexed Annuity Leadership Council is a consortium of four life insurance organizations, NAFA and producers formed in 2011 with a commitment to providing complete and factual information about the use of indexed annuities as a part of any balanced financial plan. The three videos on this page show actual annuity owners talking about their experience in their own words.