In years gone by, Fixed Indexed Annuities (FIA) were considered by the stock broker and Wall Street world as stupid, dumb and of no value.  Of course that was because stockbrokers wanted to sell their own product, variable annuities (a security) instead of an insurance product (FIA).  Now it seems the tide has begun to turn. Turning to a product which attaches itself with two very important words Baby Boomers are searching for: Safety and Security. Read More…

According to recent research from Cerulli Associates, financial advisors are reporting that annuities are requested more than any other unsolicited product.  Of the advisors surveyed, 60.8% of advisors had clients who requested annuities, just above Roth IRAs, which 58.8% of advisors were asked about.   The question is why?  The answer is simple, Annuities provide guarantees. Read More…

Long term loans carry higher interest rates than short-term loans, because there are more variable in play over  a longer period.

Another factor that makes long term loans less attractive to lenders, thus raising interest rates, is inflation.  Inflation is the rise over time in the price of goods and services.  Lenders know the longer it takes the borrower to pay back a loan, the less that money is going to be worth because everything costs more. Read More…

Hurricane Sandy devastated the Atlantic Seaboard, the national election has come and gone, but your money is still  safe and sound. Think of the simplicity the annuity brings to your life.  No fees, no loads, no risk. You have a product that will fund Baby Boomer retirement. It isn’t stocks. It isn’t bonds. Nor is it mutual funds. It’s fixed/indexed annuities. Read More…

Over the past few years, we’ve seen the” chicken and egg” cycle continue in the national economy.  The Federal Reserve pumps more money into the system and buys vast quantities of U.S. bonds and mortgage backed securities.  This is one reason the stock market took off as the Fed’s monetary policy pushed buyers into riskier assets like stocks and bonds. So why are you wary of the stock market wave?

Because deep down you know the Fed’s money infusion causes economic distractions.  What happens when stock market returns are eroded because of inflation (higher prices)?  If people open their wallets and pocketbooks, prices will rise because of higher consumer demand for everything from peanuts to petrol.  But real growth stops when prices go up at the same time stocks go up.  Higher prices eat into your profit.  Suddenly, the wallets and pocketbooks close up and consumers hunker down.  A negative spending consciousness means a negative economy.  At this point, borrowing costs skyrocket, real estate struggles, and finance as a fuel for capitalism is tapped out. Read More…

Today 10,000 new baby boomers retire each day. Think about it: Many people don’t get defined pension plans from their employers anymore.

If anything, employers have reduced their 401k match, while employees are contributing less to their 401k.

What about social security?  The IRS tells us a third of today’s retirees get almost 90% of their income from social security.  This statistic is very alarming; 1/3 of retirees are wards of the government and living off fixed income from the government.  Additionally, we have another 1/3 of retirees who get 50% of their income from social security.  All told, people retiring and folks hitting the social security system are expected to get 55% of their income from social security.  So, what are the alternatives for income? Read More…