Has anyone ever tried to advise you to buy a Variable Annuity and given you false information about such annuities? Are you interested in growth and preservation? Well, the truth of the matter is it takes MUCH bigger gains to recover from losses with a Variable Annuity than most people are aware of. Moreover, Variable Annuities are too risky if your goal is growth along with preservation. Since we focus more on long-term ranges for retirees, my first goal is not to warn you about short-term losses, however, let me give you an example of what you could potentially be looking at:
If your Variable Annuity fees are 3% and the gross return for a year is 12%, you will net an increase account value of 9%. However, if the gross return for a year is NEGATIVE 12% for that same account, you will net a decrease in account value of 15%. Should this happen to you back-to-back, one year to the next, you will lose money even though the market remained flat during that 2-year period.
Now, allow me to further educate you with the two very important reasons stated above as to why retirees should AVOID Variable Annuities and why I don’t even allow my firm to sell them!
Reason #1: Variable Annuities are subject to stock market losses. Any vehicle that is subject to stock market losses is a dangerous pursuit for a retiree. If your goal is growth along with preservation, there are reliable (in fact, guaranteed income) vehicles available to achieve this goal. Variable Annuities simply risk too much.
Reason #2: Non stop annual fees of 3%, 4%, or more. With fees like these, it takes much bigger gains to bring an account back to its previous level after losses are sustained. That means that a simple 5% loss in the market combined with 3 or 4% fees requires that a market gain of 13% must occur in order to right your ship. Again, it is simply much too risky.
Do you want financial growth and preservation while avoiding damaging losses? I urge you to contact one of our Annuity experts before you invest in a Variable Annuity. They’ll be able to answer your questions in simple terms and help you choose a vehicle that is tailored to match your retirement income goals. A consultation with one of the hand-selected Annuity Experts that I personally trained is completely free and may be the smartest financial decision you ever make for you and your family. Call 619-291-1233 ext 107
Dedicated To Increasing Your Retirement Income,
The professionals at LMT Financial