JD Mellberg Tackles Annuity Misconceptions

Share Article

JD Mellberg Financial wants to set the record straight on several commonly held misconceptions attached to annuities as a vehicle for securing a guaranteed income for life in the retirement years.

Annuities, Financial Advisor, Investing, Estate Planning

JD Mellberg Financial

Despite the losses in the stock market, many people still possess a love affair with that institution

JD Mellberg Financial wants to set the record straight on several commonly held misconceptions attached to annuities as a vehicle for securing a guaranteed income for life in the retirement years.

“Despite the losses in the stock market, many people still possess a love affair with that institution,” said JDM President Josh Mellberg. “While some market investment is a good idea, retirees and pre-retirees need to experience a paradigm shift from acquisition to preservation. Unfortunately, the urban legands surrounding annuities are pervasive. People need to educate themselves about them to ensure their decisions are well informed.”

Myth One—Despite the risk, stocks are still the best places to invest much of one’s retirement savings.

According to research conducted by Professor David Babbel and Professor Craig Merrill of the Wharton Financial Institutions Center, “Over the long haul, unless stocks achieve excess returns above Treasury bonds at least twice as high as they are generally expected to generate it often makes more sense to annuitize most of one’s wealth at retirement.”

Myth Two—Annuities are too expensive.

Annuities actually save money compared to other choices when the goal is to generate guaranteed retirement income.

Myth Three—If an annuitant gets sick, he or she won’t have access to the appropriate funds to cover healthcare costs.

Again, according to Babbel and Merrill, “Life annuities are now available that will increase monthly payments by up to 400 percent when the annuitant reaches a specific age.” The research also revealed that other innovative life annuities allow participants to withdraw a certain amount of money from the principle, or as needed, with no penalties.

Myth Four—There are only variable annuities.

There are actually several different kinds of annuities, and many can be tailored to fit the needs of the annuitant. The key in picking which one is best for the individual is to thoroughly educate oneself and pick a financial adviser who is well versed in retirement planning, including annuities.

Myth Five—Annuities aren’t suited for most retirees.

Annuities are very well suited for retirees, especially those who don’t want to take the high risk of the stock market, but still want to enjoy at least some of the gains that investment brings.

For a copy of this research, please contact JD Mellberg using the contact information below.
JD Mellberg Financial, a limited liability company, works to ensure a financially secure and enjoyable retirement for its clients through a guaranteed income-for- life. It achieves this with secure investment vehicles and the latest in tax-advantaged strategies that garner high earning power and minimal risk. For more on JD Mellberg, call 520-731-9000, visit http://www.annuitynational.com on the Internet or write to JD Mellberg Financial; 1785 E. Skyline; Suite 131; Tucson, AZ; 85718.

###

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Fabiano Moura
Visit website