Variable Annuity Research Second Edition Now Released

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Finding the answers and unbiased information on variable annuities has been difficult to find. That was until Annuity IQ began regularly review and rating variable annuity contracts.

It seems like everyday I read something negative about variable annuities. As I read the stories, I see that the authors usually miss the mark completely. While a variable annuity is not right for everyone, they have their place in a portfolio. What I read on these products is usually opinions with very little fact or inaccurate facts to make their case.

Annuity IQ announces the 2nd edition of “The Annuity Report”. Annuity IQ offers brokers and investors the opportunity to review and research variable annuity contracts. They also rate the contracts based on a 1 to 5 star rating system, based on usability and function of the benefit. In other words, they tell you if the benefit or contract is any good or not. http://www.annuityiq.com

“The second edition is simply an update of the original report. As things change, I am dedicated to keeping the information current.” Scott DeMonte owner of Annuityiq.com stated. Mr. DeMonte is referring to the constant changes that occur with variable annuities. “The market shifts and companies add and change the benefits they offer on their variable annuity contracts.” Mr. DeMonte said.

Mr. DeMonte went on to say, “There were significant changes from the initial release of ‘The Annuity Report’, first released in April of this year. That warranted a fast update to the material. Some companies surprised me with their improvements, while others, usually steadfast companies, really shocked me with the changes they made to their benefits.”

The intricacies of variable annuity benefits, specifically, living benefits are difficult to understand even by seasoned professionals. Annuity IQ is designed to inform professionals and consumers on how these benefits work in complete detail and then they give the benefit, ultimately the company, a rating of 1 to 5 stars, 1 being the worst and 5 the best.

“I could not fathom investing money in a product that I actually did not understand. The fact that a recent article, written by Humberto Cruz, sited that almost 100% of the people who bought variable annuities did not understand their living benefits is shocking and disturbing, especially with Annuity IQ now being available. This is why I exist---- to help bring a better understanding on how these benefits work in an easy to read format,” Mr. DeMonte said.

Annuity IQ is dedicated to bridging the gap between fact and fiction on variable annuities. “It seems like everyday I read something negative about variable annuities. As I read the stories, I see that the authors usually miss the mark completely. While a variable annuity is not right for everyone, they have their place in a portfolio. What I read on these products is usually opinions with very little fact or inaccurate facts to make their case.” Mr. DeMonte said.

He went on to say. “The people usually make comparisons that are not even close to being accurate. For example, they will compare an S&P 500 index fund to a growth and income fund inside of a variable annuity. How is that a justifiable comparison? You should never compare a growth and income fund to an S&P 500 fund; they are completely different types of investments and asset classes. They also state that people are buying variable annuities for their death benefit when, in fact, they are not buying these products for death benefits. They are buying these annuities for living benefits and leaving money behind to the consumer’s heirs is usually secondary.”

Given the savings rate of American’s fell to -.4% in 2005, according to a Time magazine article printed on June 5th 2006, Mr. DeMonte sees annuities as a great savior to the American public. “Because annuities carry surrender charges and have early withdrawal IRS penalties, it makes them a forced savings account. Since Americans are saving less for retirement, these products, with their tax deferral, investment selection and living benefits, can help Americans achieve their goals of a more secure retirement.”

He went on to say, “It would be very easy for me to do what others are doing and pick annuities apart. I feel if you look at the big picture and the retirement problems we see coming down the road, these products are part of the answer, not the problem. Being short sighted and trying to fulfill a personal agenda by not giving all of the facts on these products is not justifiable and is irresponsible.”

Mr. DeMonte stressed that you should never buy a product simply on what is written about it in a magazine or a newspaper. He feels that you need proper advice to see if a product or investment is appropriate for your needs.

“You have to remember all of these financial advice columnists are giving their opinions, not recommendations. It is impossible for them to give you a firm recommendation without detailed facts, and how could you give them all the necessary facts in a 4 paragraph letter or a 20 second phone call? You cannot, it is not possible nor is it feasible to give out accurate information without all of the facts. Therefore, you get opinions that suit their personal feelings.” Mr. DeMonte said.

If you are a potential investor or if you are a broker and want to see if a particular variable annuity is of any value, then please visit http://www.annuityiq.com to get more information. “I do not care if you buy an annuity or not, I just want you to have the facts,” Mr. DeMonte said as he commented on how he does not sell any type of annuity product. To get a complete, unbiased review and clear answers to variable annuities, Annuity IQ is the place to go.

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Scott Demonte
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